Answer:
Your cardholder states that he authorized $138.00 but was charged $198.00. This meets the definition of an incorrect electronic funds transfer under Reg E 1005.11. You are required to investigate. Note that the amount of the dispute is $60.00, not the full $198.00 so you need only provide provisional credit for $60.00 if you cannot resovle the dispute in 10 business days. Since the cardholder does not have a printed confirmation of price, VISA/MasterCard will not accept a chargeback for incorrect amount. In this circumstance the card brands recommend that the issuer file chargeback code 4853(MC) or 53(V) "Defective not as described" Ask the cardholder to write a letter stating what the promised charge was vs. what actually took place. The cardholder should also document the effort to resolve the dispute with the merchant, the merchant's response, and why this response was not satisfactory. The merchant will then have an opportunity to represent the transaction to refute the cardholder's claim. This should provide the documentation needed to approve or deny the claim.
First published on BankersOnline.com 12/10/12
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