Chargebacks

A credit card chargeback occurs when a cardholder or card issuer (Visa/MasterCard, Discover, or American Express) disputes a transaction charged to their account and the resolution process results in a favorable decision to the cardholder. The chargeback is the reversal of a prior sales transaction. There is a Notification and Retrieval Process which is time-sensitive and if the department chooses to dispute the chargeback (which it should always do unless the department is aware of an erroneous transaction) it is critical to respond and provide appropriate documentation within the allowed timeframe. It is sometimes possible to avoid or dispute a chargeback, which is explained below. 

Credit Card Chargeback Notifications and Retrieval Process

The terms below will help you understand the chargeback and retrieval process.

Ticket Retrieval (request for copy of credit card transaction): The credit card holder is requesting documentation of the original transaction such as:

  • A credit card sales slip with signature
  • An invoice
  • Proof of delivery of goods and services
  • A copy of the cashed refund check (front & back)

Chargeback Notification: The issuing credit card company (i.e. - Mastercard, Visa) is advising that a chargeback is pending and a debit to our account may be avoided by providing proof that the charge is valid. (See above documentation)

Chargeback: A debit is issued to our bank account for a transaction disputed by the cardholder. The funds are then held in an account pending the outcome of the response furnished by the University department who initiated the transaction to either accept or challenge the chargeback.

Challenge: The department can challenge a chargeback within the designated timeframe by submitting a response to substantiate the charge along with the appropriate back-up documentation. Examples include:

  • Original sales slip with signature
  • Invoice (reason for payment)
  • Proof of delivery of goods/services
  • Non-refundable fees - A copy of the University Policy detailing the terms and obligation for the particular charge.
  • Indicate whether the item was an in-person, telephone or internet transaction
  • Copy of the cashed refund check (front & back)
  • Proof of refund issued to the credit card
  • Name and address match (Internet Transactions)

The response should be as precise and detailed as possible. In addition to submitting to the documentation, return the first page of the chargeback advice and check the appropriate box at the bottom of the page.

Accept the Chargeback: If the chargeback is valid and the cardholder is entitled to the credit, indicate such in your response, include the first page of the merchant advice and check the box authorizing the charge at the bottom of the page.