Chargebacks & Prevention
MasterCard and Visa hebben have developed rules and systems to protect the interests of both Acceptans and consumers: Acceptants want payment guarantees for the products they have sold and consumers want to be assured of a timely and correct delivery of products or of compensation in case of fraud.
“EMV” has been developed as a means to prevent fraud and offer a payment guarantee to entrepreneurs. The interests of card holders are protected by the system of ‘chargebacks’.
A ‘chargeback’ is a request by a card holder to his card issuing bank to reverse a credit card transaction in case ofcomplaint or fraud. A chargeback can lead to a reversed charge to the Acceptant.
The risk of a chargeback depends a.o. on your:
- Acceptance process – do you use an EMV-terminal that reads the chip and asks for a PIN code?
- Fraud risk – does the type of products you sell make you vulnerable?
- Staff Training – even when accepting transactions with an EMV-terminal you have to be on your guard. Has your staff been trained to recognise deviant purchasing behaviour?
- Administration – you have to file the signed tickets of chipless card transactions. When you are not using an EMV-terminal that reads the chip on a card you need to do this with every ticket.
Purchasing an EMV-terminal offers the best protection against fraudulent transactions. Click
here to read more about this subject.