Chargebacks

Chargeback Disputes

This page provides information for clients who have received a Chargeback Dispute, also known as a Bank Assisted Dispute. You can use the information below to learn what a chargeback is, and how to resolve a chargeback when it occurs.

For suggestions on how to reduce the incidence of Chargeback Disputes, please view our tips on how to reduce chargebacks.

What is a Chargeback Dispute?

A Chargeback Dispute is a forced refund from a customer's credit card company. It occurs when a customer, upon reviewing the charges on his/her credit card bill, decides to enter a formal dispute of one or more billed items. A Chargeback Dispute requires substantially more work to resolve than a regular customer inquiry, because in this case the customer decided to formally question the charges with their credit card company, instead of contacting CCNow directly.

CCNow encourages cardholders to contact us directly with billing questions. We offer both email and telephone support for billing inquiries, and we take every opportunity to inform the customer of these services. For example, we list our contact information directly on the customer's credit-card statement, and on the confirmation pages.

Chargeback Reason Codes

Chargeback Disputes usually carry one of four dispute reason codes:

DNEF:
The customer says that he/she did not engage in this transaction, did not purchase anything from CCNow, or did not authorize this transaction.
NRCT:
The customer says that he/she has not received the merchandise ordered.
REFP:
The customer says that they returned the merchandise, or that you agreed to issue a refund on this order.
DMER:
The customer says that the merchandise received was either defective, damaged, or not as advertised.

How to Resolve DNEF Disputes

If you have received a Chargeback Dispute with reason code DNEF (see definition above), this means that the customer does not recognize the charge labelled "CCNow.com" on their credit card bill. Some reasons why this may occur are:

  • The customer may have forgotten that he/she made the purchase.
  • The purchase may have been made by another member of the cardholder's family, such as a child or spouse, perhaps without the permission of the cardholder.
  • The customer's credit card number may have been stolen, or otherwise used fraudulently.
  • In rare cases, the customer may be making a false claim. This may occur if the customer is uncomfortable or embarrassed by the purchase, or if the customer wants to keep the product without paying for it.

For DNEF disputes, we suggest that you contact the customer and attempt to determine where the problem or misunderstanding occurred. If you can refresh the customer's memory or help him/her to determine that this was a valid charge, then sometimes the cardholder can reverse the chargeback. Please ask the customer to call their credit card company again and cancel the dispute. We ususally dispute each chargeback we receive with the order information that is on file, so be sure to have all information like the tracking number up to date in CCNow's system.

If you and the customer are unable to come to an agreement regarding the disputed charge, and CCNow is unable to win an appeal with the issuing bank, then the Chargeback Dispute will stand. This represents the normal risk associated with accepting credit cards online where no signature is present.

How to Resolve NRCT Disputes

If you have received a Chargeback Dispute with reason code NRCT, this means that the customer did not receive the merchandise that was ordered, and is requesting a refund. Some reasons why this may occur are:

  • The shipment may have been lost or delayed during shipping, or perhaps held by Customs.
  • The shipment may have been stolen after delivery.
  • In rare cases, the customer may be making a false claim. This can occur if the customer wants to keep the product without paying for it.

When an NRCT dispute occurs, you can respond to the dispute very effectively if you have used a shipping method that provides proof of delivery and have it recorded in our system. We will automatically dispute this type of chargeback if this informaiton is present at the time of the chargeback.

If you do not have proof of delivery, there are occasionally other opportunities to respond to an NRCT dispute. For example, you can contact the customer to ask if the shipment has now arrived, and ask them to reverse the chargeback with their bank.

How to Resolve REFP Disputes

If you have received a Chargeback Dispute with reason code REFP, this means that the customer is claiming that they returned the merchandise, or that otherwise you agreed to issue a refund on this order.

If you do not remember agreeing to issue a refund, please contact the customer to ask about the nature of the chargeback dispute.

How to Resolve DMER Disputes

If you have received a Chargeback Dispute with reason code DMER , this means that the customer is claiming that defective merchandise was received, or that the merchandise was not as advertised.

You can contact the customer and ask for the merchandise to be returned. A proof of shipment is usually not enough to resolve this type of dispute.

Response Time

CCNow does not routinely give updates on the status of chargeback disputes and rebuttals. While we generally attempt to dispute each chargeback that is received, the success rate and time to resolve varies greatly. It can take up to 8 weeks, depending on the case and the particular issuing bank. We also do not have access to speak with the issuing bank. If you have additional information that may help in fighting a chargeback, please email us the information within 2 days of receiving the chargeback so it can be included. If we sucessfully fight the chargeback, we will post the funds back to your Account Statement.

Further questions?

If you have further questions regarding a chargeback, please contact us.

We highly suggest reading our tips to reduce chargebacks.