A chargeback is a transaction that has been disputed and returned by the cardholder/issuer for various reasons. You are subject to a $10 fee for every chargeback your business receives. In order to prevent chargebacks, and help you save money by avoiding these fees, we have included a couple of recommendations.
There are many reasons why a cardholder might initiate a chargeback with their Credit Card provider, some can be fraud, others can have authorization issues or even processing errors. The issuer will issue a code to identify the reason or type of chargeback.
With each chargeback, the issuer has applied a conditional credit to the cardholder's account. Credit should not be issued upon receipt of a chargeback. Credits issued after a chargeback have been received may not be recoverable and you would be financially responsible for the credit as well as the Chargeback.
When disputing a chargeback ensure you respond prior to the chargeback due date and provide a full explanation along with all pertinent supporting documentation, such as receipts, racer’s profile, any additional purchases besides the one being disputed. The chargeback may be reversed if the information is sufficient.
Chargeback reversals are conditional as the issuer may pursue the case further by processing a second chargeback or incoming pre-arbitration case.
We at Clubspeed are continuously monitoring our portal and are on the lookout for new chargebacks. We email chargebacks to the Point of Contact for your company on a daily basis to ensure that you have enough time to review and determine if you are accepting or disputing the chargeback.
If you are disputing the chargeback, you may fax in the Response sheet and corresponding documentation to Merchant Services to 402-933-1525. You can also send a PDF file of your response to Payments@clubspeed.com and you will receive a confirmation of submission. Please note that you will be notified of any decisions directly.
To reduce your chance of Chargebacks,
● Always Verify Cardholder Identity
○ This helps ensure that the Card being used rightfully belongs to that person.
● Always Have Customers Sign Sales Slips
○ In case of a chargeback, you can use this slip as an acknowledgment of the charge.
● Make sure all duplicate transactions are voided properly
○ If there were multiple transactions with the same amount, make sure you can prove that they are not duplicate.
● Never issue refunds with cash
If you ever need to locate a ticket number through your Clubspeed POS, you can easily search the last four numbers for the Cardholder’s Credit Card.