What is a Chargeback?
'Chargeback' is the term used for debiting a merchant’s bank account
with the amount of a transaction that had previously been credited.
There are a number of different reasons why a transaction will be
charged back, but they mainly fall into two categories:
1)Where the merchant has made an error at the point of sale, for example, an expired card has been used;
2)The
cardholder or the Card Issuing Company (“the Issuer”) is disputing the
transaction. For example the card or cardholder were not present at the
point of sale and possible fraud may have taken place.
Chargeback Process
Step 1 Cardholder disputes transaction – Issuer
This is typically a transaction that the cardholder does not recognise on their statement.
Duration
of the chargeback process may take up to 6 months from the date of the
transaction, but in some instances it can take as long as 12 months to
finalise.
Step 2 Issuer advises ANZ after determining reason for chargeback
Step 3 ANZ contacts merchant
Liability rests with the merchant to provide satisfactory evidence regarding the transaction.
The Merchant has 10 days to respond to this request.
Action required will be advised in the request in line with your Merchant Agreement and Merchant Operating Guide.
There are two possible outcomes:
Merchant Unsuccessful
If
the request is ignored or not satisfactorily resolved, the amount in
dispute is charged back to the merchant’s nominated bank account and
will appear as a debit. Therefore it is critical that merchants respond
immediately to voucher requests from ANZ. Ignoring such requests may
result in chargeback to your business account.
Important: Please
do not process a refund after receiving a chargeback debit advice
letter. The cardholder is already credited by their bank when the
chargeback is raised.
Merchant Successful
The
merchant is able to provide documentation proving the transaction and
the case is subsequently closed with no cost to the merchant.
Important Note:
ANZ
Bank does not create the rules and regulations regarding Visa,
Mastercard and Bankcard disputes. Like all the other banks, ANZ is
governed by schemes, rules and regulations.
We will do everything
possible to defend the chargeback on your behalf, however the nature of
the dispute and the type of chargeback will greatly affect what actions
we can take.