How to face multiple fraudulent transactions chargeback claim

Thanks to the advancements of the internet technology, today businesses are collecting the payment through card transactions. This is one of the easiest ways to keep track of the balance of the transactions.

But, this ease has some points where the merchant can do some errors while collecting the payment. One of the errors is multiple credit card transactions posted by the merchant on a single account. This error can be there by multiple transactions taking place due to an error. It can be it technical or human.

Dealing with multiple fraudulent transactions chargeback claim

This fault can turn into a transaction dispute. If the merchant is not able to correct the error before applying to the bank for funding. For a chargeback case to process on faulty multiple transactions available to card holder’s account. The cardholder questions the transactions to its bank, by submitting a written application to the bank with agreeing that the cardholder was present when the first transaction was done. But, claims that the other transactions as fraudulent practices.

How to Manage

This error is basically for the transactions that take place in the card-present situation that is the card was physically present during the transactions. The card brand network VISA has assigned reason code 57, but MasterCard has assigned reason code 4840 for this transaction dispute condition. A Merchant can manage the transaction disputes for this reason by performing the listed remedies:

  • One of the foremost ways to avoid such multiple error transactions is to cross check the details and verify each and every transaction before sending them to the bank for funding.
  • If you caught the error after getting funding for the repetitive transactions and transferred the amount to the customer’s account, and still you faced the chargeback claim, give the amount transfer details to the bank to prove that merchant has processed back the faulty transactions.
  • If the condition is that the cardholder was available at the time of those multiple transactions the merchant must provide the following proofs:
  • Sales receipts
  • Shipping invoice of delivery with item details
  • If the multiple transactions were tracked, and the merchant does not process the amount to the card holder’s account. The merchant should accept the transactions dispute and give the disputed amount to the customer.

The prevention measure to take for this type of error is to have a well-designed payment processing system. This should analyze and detect if any transaction is duplicate in the data inventory. The other prevention measure a merchant can perform is they should review that the batch of transactions. All that is being sent for processing and funding is unique, that is it was not been sent earlier.

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