How Do I Write an Effective Credit Card Dispute Letter - PDF by vwi12483


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									VISA DISPUTES (Signature Based Transactions)

Cardholders with a Visa Credit card or Visa Debit card may dispute transactions that appear on
their account either because of a billing error, because they do not recognize the transaction, or
because they did not authorize (or give someone else authorization) to make the transaction and
it was a credit transaction.

The cardholder must submit their dispute in writing and must be received within 60 days of the
statement being mailed on which the transaction appears. Otherwise, the dispute is not covered
under their billing rights.

For unauthorized transactions, Visa regulations state that the cardholder’s liability is zero.

Procedures – FSC / FAC
When a member contacts you about a transaction they want to dispute, first review their
transaction history to ensure that the charge(s) has not already been resolved.

As the cardholder they have the ability to dispute a charge(s) but also have the responsibility to
attempt to resolve any issues with the merchant prior to disputing the charge.

Common Disputes

Duplicate posting
This is when the same dollar amount for the merchant has posted the transaction twice.
    • In the dispute, the member only needs to notify us.

Non-receipt of merchandise (Mail/Telephone/Internet)
This is when the member’s account has been charged for merchandise they ordered but has not
been received within the specified time.
    • The member is responsible for contacting the merchant and has attempted to resolve.
    • If no resolution is obtained, in the dispute letter they need to state what attempts they
         made with as much details as possible and provide copies of any letters or emails they

Returned merchandise
This is when the member made a valid purchase but returned the merchandise and has not
received a credit.
    • The member needs to supply proof of the return (certified mail receipt, tracking number or
         something similar)
    • Will need to know when the merchant received the merchandise since they have 30 days
         from receipt to process a credit.
    • The member can not dispute the amount they had to pay to return the merchandise.

Credit not processed
This is when the member made a valid purchase, returned the item to the merchant (store) and
has not received a credit.
    • The member needs to provide proof of the return such as a credit slip.
    • The merchant has 30 days from the date the credit was issued to process.

Hotel charges
This is when a member made a hotel reservation, did not show but was charged.
    • The member is responsible to know by what date/time they must cancel a hotel
         reservation to avoid being charged for room. In most cases, they can be charged for at
         least one nights stay but may be longer depending on what was disclosed to them.
    • The member must provide the cancellation code that was provided to them when they
         cancelled their reservation.

Cancelled Recurring Services
This is when a member contracted to have their account charged for a recurring service (i.e. gym
membership) and continue to be charged.
    • It is the member’s responsibility to know what the cancellation policy of the service is.
    • If the member followed the policy (i.e. gave written notice 30 days in advance) and they
         continue to be charged, the member needs to provide a copy of the notice they gave, and
         proof that it was received.

Unauthorized charges
This is when charges are made without the knowledge and/or permission of the cardholder and
they may or may not have the card in their possession.
    • You want to find out from the member if they have their card or not.
    • You want to find out if there are other cardholders (including authorized users) and has it
         been confirmed whether or not they made the charges.

If it has been determined that the charges in fact are unauthorized and fraudulent, to safe guard
against further unauthorized charges, the card(s) need to be blocked.

Notify eCommerce immediately with the following information:
    • Account number
    • Card number
    • Cardholder’s name
    • Whether the card was lost, stolen or still in possession.
    • Information on the last time they remember using the card (i.e. date / amount / location)

Dispute Notice Requirements

A written notice from the cardholder that must include:
   • Cardholder’s name
   • Account number
   • Explain any good-faith attempt to resolve the issue with the merchant.
   • Attach any correspondence between them and the merchant, including all dates and or
        attempted dates of contact.
   • Provide any other information or documentation that may be relevant to the dispute.
   • Signature of cardholder(s).

Notice of Unauthorized/Fraudulent Requirements

A written notice from the cardholder that must include:
   • Cardholder’s name
   • Account number
   • Provide any information or documentation regarding the lost or theft of the card.
   • Signature of cardholder(s).

Procedures – eCommerce
When the dispute letter is received, a review of the account history is made to ensure that the
account has not already been corrected.

The letter is reviewed to ensure that we have the necessary information from the member to
support the dispute.

The charge(s) are “reversed” and a comment placed: Visa Dispute

The necessary documents are submitted as a Chargeback to the merchant.

The merchant will review and has the ability submit a Rebuttal (representment) back to the credit

Depending on the requirements associated with the dispute, the credit union may re-submit a
2 Chargeback back to the merchant.

Depending on the type of dispute, it may enter into a Pre-Arbitration or Pre-Compliance claim.

A final decision is made by either the merchant accepting the Chargeback in which case, the
credit issued remains on the account.

If the Chargeback was unsuccessful where the dispute was not valid, in this case the credit may
either be reversed on the account (member owes) or may be Written Off as a loss to the credit

What is Chargeback?
A transaction retuned through the Clearing and Settlement system by an issuer to an acquirer
after a presentment. By processing a chargeback, the issuer states that a violation of the Visa,
USA, Inc. and International Operating Regulations has occurred and the issuer is retuning the
transaction to the acquirer for a remedy or cure.

What is Representment?
Representment is a term used in lieu of a second presentment. The acquirer states the
transaction being sent to the issuer for payment is in compliance with the Visa, USA and
International Operating Regulations.

What is Pre-Compliance?
A process where Visa resolves disputes between members arising from violations of the Visa
USA, Inc and International Operating Regulations. The requesting member can certify and/or
support that a financial loss has occurred or will occur for a specific amount and no chargeback
right is available.

What is Pre-Arbitration?
A process by which Visa at the request of the issuer, decides to take responsibility for the
transaction if attempts to settle was not successful.

Write off loss
All accounts on the visa chargeback general ledger under twenty-five dollars ($25.00), FedChoice
will charge-off. It is cost effective if Fidelity does not process anything twenty-five dollars and
under. Any amounts over twenty-five dollars must fall within two categories; 1) Internal Errors, 2)
Customer Service with explanation.

FedChoice Federal Credit Union / Card Programs / CrDb Card / Visa Dispute / Sept 2009


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