Card Payments International

Chargeback Risk Management

At Card Payments International one of our top priorities is customer service. We want our customers to be able to rely on us when they need us. We also want to help keep your business in business. As the premier credit card processing company in UT, your business is our business, so we want to keep our retailers from losing money. A chargeback is one way a business can lose money. A chargeback occurs when a credit card holder contacts the card issuer to dispute a charge on his or her account. If a chargeback is successful, it results in a reversal of sales transaction, which means the retailer loses money.
Chargebacks can occur for a number of reasons, but the most common reasons include:

  • A customer does not recognize or remember making the transaction
  • Fraud (by unauthorized use of a stolen credit card or card owners defrauding the merchant)
  • Processing errors
  • Authorization issues
  • Errors made by the processor or card issuer
  • Inadequate fulfillment of a transaction copy request


As a small business dealing with chargebacks can be confusing, time-consuming, frustrating, and expensive, even if it is ultimately resolved in your favor. That is why it is vital that businesses record and manage chargebacks efficiently and take steps to avoid them in the future. Here are some tips from the Visa® E-Commerce Merchant’s Guide to Risk Management:

  • Do not complete the transaction if the authorization request is declined. Rather than repeating the request, ask for a new form of payment.
  • When a cardholder contacts you directly to resolve a dispute, respond to them quickly. If they are due a credit, issue it quickly to avoid a chargeback and the associated fees. Send them an e-mail to confirm the pending credit.
  • Respond to sales draft inquires from your credit card processor with complete details of the transaction, including:

-Account number

-Card expiration date

-Cardholder name

-Transaction date and amount

-Authorization code

-Merchant name and address (and website, if applicable)

-General description of goods or services

-“Ship to” address

-Address Verification Service (AVS) response code

At Card Payments International, our UT payment processing experts are standing by to help all of our merchant clients keep their business safe and efficient. Click here or call us today at (801) 456-8585 to learn more.