My Merchant Account Blog

Non Receipt of Goods or Services Chargeback Codes

Wednesday, November 08, 2006

There is only one chargeback reason code in this group. These chargebacks can happen from time to time if the consumer claims the services were not provided or the goods were not delivered - maybe even not received in a timely fashion.

Reason Code 30: Services Not Provided or Merchandise Not Received

Reason Code 30 can happen when card issuer receives a claim from a cardholder the merchandise or services ordered were not received or the cardholder cancelled the order as the result of not receiving the merchandise or services by the expected delivery date.

The most common causes is when the merchant:

• Did not provide the services
• Did not send the merchandise
• Billed for the transaction before shipping the merchandise
• Did not send the merchandise by the agreed-upon delivery date

Notified of a Chargeback

If the merchandise was delivered by the agreed-upon delivery date, contact the merchant account provider with details of the delivery or send your merchant bank evidence of delivery, such as a delivery receipt signed by the cardholder or a carrier's confirmation that the merchandise was delivered to the correct address. If the merchandise was software that was downloaded via the Internet, provide evidence to your merchant bank that the software was downloaded to or received by the cardholder.

If no delivery date has been specified, and the card issuer charged back the transaction less than 30 days from the transaction date, send a copy of the sales receipt to your merchant bank pointing out that 30 days have not yet elapsed. You should also state the expected delivery date.

If the specified delivery date has not yet passed, return the chargeback to your merchant bank with either information or a copy of the documentation showing the expected delivery date.  In general, you should not deposit sales receipts until merchandise has been shipped.  For custom-made merchandise, you may deposit the entire transaction amount before shipping, provided you notify the cardholder at the time of the transaction

If the merchandise was shipped after the specified delivery date, provide your merchant bank with the shipment date and expected arrival date, or proof of delivery and acceptance by the cardholder.

If the contracted services were rendered, provide your merchant bank with the date the services were completed and any evidence indicating that the customer acknowledged receipt.

To Help Prevent Chargeback Reason Code 30

If delivery of merchandise is to be delayed, notify the customer in writing of the delay and the expected delivery date.  As a service to your customer, give the customer the option of proceeding with the transaction or cancelling it (depending on your customer service policy).

If you are shipping merchandise without requesting proof of delivery, consider the costs and benefits of doing so compared to the value of the merchandise you ship.  Proof of delivery - such as certified mail or a carrier's certification that the merchandise was delivered to the correct address and signed for by the cardholder - will allow you to return the chargeback if the customer claims the merchandise was not received.

If you sell software that can be downloaded via the Internet, it is suggested that you design your web site to enable you to provide evidence to the merchant account provider that the software was successfully downloaded and received by the cardholder. You might even consider using extra scrubbing techniques like Verified By Visa and MasterCard Secure Code and using fraud protection services.

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