At this point, the issuing bank will either agree with the acquirer and reject the cardholder's dispute or disagree, in which case you can either accept this outcome or send the transaction to the card association for final arbitration.If the card association decides in your favor, the cardholder will be billed for the appropriate amount and you will receive payment.Once a customer has disputed a charge, a your acquiring bank will begin going through a specific procedure to resolve the issue.
Add in the fees charged by banks and processors, and even disputes which turn out in your favor can be expensive.
This article aims to give more details about chargebacks, why they happen, and how you can prevent them.
For most transactions, customers have 120 days from the sale or when they discovered a problem with the product to dispute a charge.
The bottom line here is that whenever customers feel that they have been charged for something they shouldn't have, they can file a dispute with their bank, which begins the chargeback process.
Some companies, like First Data, refer to a retrieval request as a 12B letter.
A retrieval request (or 12B Letter) is one of the first steps in the overall chargeback process.
Acquiring banks will generally let you know exactly what's expected, and it's important to follow these procedures to the letter to protect your chargeback rights.
Discover, for example, prohibits businesses from contacting customers who have disputed a transaction.
Many processors charge a smaller fee for retrievals than chargebacks.