A chargeback is a transaction that has been disputed by the cardholder or card issuer. Chargebacks occur for a variety of reasons, the most common being cardholder does not recognize, fraud/unauthorized, service/merchandise not received, service/merchandise not as described or defective. When a customer disputes a charge, you receive a chargeback notice. The amount of the dispute is credited to the customer's account and debited from yours. (In other words, the transaction is "charged back" to you.) You have a right to challenge the chargeback by sending in a rebuttal. Intuit works hard to fight chargebacks on your behalf. To assist us, please respond promptly and file requested paperwork by the submission deadline.
If you have received a chargeback, DO NOT issue a credit to the cardholder. The cardholder has received a credit from their bank upon the processing of the chargeback.
Chargebacks can be painful. Be aware of the most common reasons for chargebacks and take every precaution to guard against them.
Fee note: Even if you work with Intuit to successfully reverse a chargeback, you still must pay a chargeback fee. The chargeback fee is not a penalty fee. It is a processing fee for handling this issue on your behalf.
Here is the basic process:
If you wish to challenge a chargeback, you MUST do so on time. Notices you receive include specific instructions and deadlines for your response. Failure to do so may forfeit your right to receive credit to your account.
A chargeback comes directly from the cardholder's bank. Intuit is unaware of a dispute until the chargeback is processed. Your customer is usually not required to notify you of their dispute prior to contacting their bank, nor is a retrieval request required prior to the processing of a chargeback.
Being EMV (Europay MasterCard Visa) compliant is the best protection against chargebacks. EMV chip cards contain microprocessors which provide stronger transaction security features and other application capabilities. Unlike magnetic stripe cards, the card chip creates a unique transaction code everytime it is used for payment. This transaction code can only be used once. When a chip card is used, the card's authenticity is verified when data is transferred between the chip and the issuing bank, which creates unique transaction data. Magnetic stripe cards contain unchanging data. When they are swiped, the payment processor matches them to the linked bank account by reading magnetic fields. This makes it easier for fraudsters to copy the information and create counterfeit cards. Please see the attachment in Article INF20355 and Article INF23795 for more information on EMV.
Follow the instructions in the letter you get.
Chargeback or Retrieval Request notices include detailed instructions as well as the fax number and email address to where you should send your response. Failure to follow these instructions may delay the process.
Always follow the specific instructions you receive. Here is some additional chargeback contact information: