I have been reviewing some error resolution files. I have noticed in most of the cases we have given provisional credit to the customer within 10 days of being notified.

We pursue our chargeback rights and have noticed that the chargeback is being accepted. The chargeback is then credited to the customers account and at that time we debit the provisional credit. Do we need send them a letter stating we are debiting the provisional credit and allow 5 days for overdrafts? We notify them when of the resolution but wasn't sure if we have to send a letter. We do send a letter when we determine there was no error and we debit the provisional credit.

The procedure as you describe it seems a little confusing to me. Rather than credit the customer twice and the debit them once, wouldn't it make more sense to credit the chargeback to whatever internal account you used to provide the provisional credit to offset that debit entry, and then notify the customer that an error occurred and their credit is permanent?

Thanks Brian! That is what I thought but when I asked about it. I get the usual response this what what we have always done. That's a pretty typical response around here. We have alot of people that don't like change. I will review again with our ops manager.