Chargebacks are transactions that fail after settlement, and can be a significant cost to the merchant's business, as they can be deducted from their account, with a charge being applied.
The chargeback is initiated when a particular transaction is queried by the card issuing company, and can be caused by a variety of reasons. Once made, the chargeback will then be passed over to E-Clear, who, as your acquirer, will decide on the best course of action to take on your behalf.
The Company will do whatever possible to defend your chargeback, although the outcome will ultimately depend on the nature of the transaction.
E-Clear will trace each chargeback to its original transaction, by establishing the date, time, currency, the amount of the transaction and any code non-conformity. We may also request additional information from the merchant concerned in order to prepare an effective 'dispute' .
By managing the chargeback in this way, E-Clear can identify any irregularities in the transaction process. These irregularities can then be used to identify any duplicate chargebacks, and thus establish whether a transaction refund is required. In most circumstances such a dispute will take place automatically.
Whether we can successfully defend the chargeback, will largely depend on whether any of the rules laid down by the credit card scheme concerned have been breached. We will of course be in constant touch with you throughout the chargeback process and, if necessary, will discuss any special needs with the credit card company on your behalf.
To reduce the risk of chargebacks, E-Clear works closely with both Visa and MasterCard, and is therefore kept well informed of any proposed rule changes by the card issuing companies. If any such rule changes do occur they are immediately passed on to the merchants.
