Quote:
Originally posted by psyko514
RockDaddy... perhaps the driver's license isn't used in the USA... but it can be used here in Canada.
so a chargeback is only issued when a processor does not prove the charge as being valid.
and before it's charged back, the cardholder must then sign a legal affadavit restating the fact that he didn't authorize the charge.
if at any time the processor or visa can prove the charge as being valid, the credit card will be redebited and the processor will be credited
|
If it were only that simple. Unfortunately that system is not so for 5967 mcc code adult merchants anymore.
What you are speaking of is called a retrieval request. Whereby most merchants have a chance to give a refund or challenge the potential chargeback before it turns into one.
Now the affidavit is sent out right away to the consumer and there is no recourse for consumers lying. We belevie 83% of all our chargebacks were transactions actually done by the consumer and then charged back because the claim " I didnt do it". We collect so much info but no signature no fight.
Not so with Mcc 5967 Adult merchants. MC and Visa now automatically chargeback after the letter is signed. They said too many merchants were giving credits to avoid chargebacks. I guess you cant offer a money back gaurantee anymore then.
You can then fight it and get only the original charge money back but the chargeback stands.
The problem is out of control.... hence the new Verified by Visa solution which will require a pin number (virtual signature) when using your card.. This should help chargebacks on the initial charge but not the rebills..