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#2244003 - 10/13/20 11:21 PM Denying claims based on merchant responses
stonec Offline
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Joined: Nov 2018
Posts: 24
We have a client who disputed 19 transactions, all from the same company, that were above our chargeback threshold. We have today received 6 responses from the merchant showing matching contact information on name, email address, mailing/billing address, date of birth and on two forms, phone number.

Based on this information, we are denying our client's claims of unauthorized transactions as we have received compelling evidence that our client did, in fact, authorize these transactions. However... Do we deny just the six that were responded to? Or since all disputed transactions were disputed with the same merchant, and these responses all match the client, are we justified in choosing to deny all claims? We have until this Friday to meet our regulatory deadline, but I believe that the merchant has slightly longer to respond to chargeback claims further complicating our decision.

If we honor some transactions but deny others, that could lead to confusion and frustration on our client's part and will also open us up to risk of taking losses on transactions that are all but guaranteed to be authorized. But if we deny those transactions and reclaim the provisional credit to our client's account and the merchant does not respond in time, then we will have excess chargeback credits for these disputes and have to make a decision on what to do with the excess funds. Could we deny all and then re-credit the client's account if the merchant does not respond in time to reclaim all charged back funds?

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#2244011 - 10/14/20 01:10 PM Re: Denying claims based on merchant responses stonec
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Deny the six - pay the consumer for the rest - cancel future card privileges - pursue getting your money back from the merchant. You are confusing the required action you must take with the consumer under Reg E and what it takes to get your money back from the merchant. They are two very different things.
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#2244193 - 10/16/20 08:57 PM Re: Denying claims based on merchant responses rlcarey
stonec Offline
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Joined: Nov 2018
Posts: 24
And if the merchant responds to the remainder after we have resolved with the client, then we take a loss on each of those responses that also contain compelling evidence.

That is more or less what I thought, but we rarely run into a situation where the merchant responds in chunks like this right up to our Reg E deadline.

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#2244200 - 10/16/20 09:32 PM Re: Denying claims based on merchant responses stonec
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
Since VISA gives the merchant 30 days to respond and Mastercard 45 days, make sure you are taking advantage of the 90 days extended investigation timeframes for debit card claims to avoid having to close a case before the merchant's response window closes.
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