Change in Visa Chargeback procedures

[StevenAllen]

Effective April 3 2004 Visa has made a significant change to chargeback procedures. In the past the consumer and the merchant could both engage in multiple chargebacks and replies. Now under the new guidleines you are both limited to one chargeback and one reply. Arbitration of the chargeback dispute is available at $150.00. Many banks/merchant processors have a chargeback defense program which may be very helpful, but many do not, inquire with your processor.

[Aleppo]

Do you think this has anything to do with Visa and MasterCard's urge to implement their 3d secure programs....Verified by Visa and SecureCode

[StevenAllen]

No, I believe it is to reduce paperwork and time spent on these issues.

[jestep]

It’s also to reduce the ability of the customer from being able to charge back more than once. Take into account the average charge back fee for a merchant is $25.00 if some pissed off customer charges back and looses and does it 7 more times... That’s $200.00 lost to the merchant, no refund. What if the product cost $4.00. That’s a huge loss over nothing. The merchant could not dispute if they wanted to, but then they would be building a high charge back ratio, which could eventually cause them to be terminated. This is a great step for Visa. I hope that eventually there will be a penalty for a non-merchant loosing a charge back. This would eliminate frivolous charge backs.

[StevenAllen]

I have been a on-line merchant since 1999 and off-line since 1979 and have NEVER seen a chargeback issue presented more then twice.

[jestep]

Thats good. Most people haven't either, but we occationally see a merchant that somehow really pissed someone off. I think the only times when we do see multiple chargebacks >1 is when a customer is trying to get back at someone or just doing it out of spite. But your right, not very common, but stil possible.