Credit Card Chargebacks

The correct routing and handling for notices received from credit card companies requesting refunds on behalf of customers is:

Treasury, who receives the chargeback notices, promptly notifies Qual Customer Complaints. The customer should then be contacted to find out what the problem is, and be handled to the customer’s satisfaction if possible. Qual may then turn the customer over to a salesperson if the situation calls for it; for example, if the customer agrees to exchange the disputed item for another item. The salesperson should not be called in to handle the problem before it is resolved, because this takes them away from producing new sales and hurts the store’s production.

Regardless of what happens with the customer, the chargeback form must be filled out by Treasury and returned. If there is still a dispute with the customer, then Qual notifies Treasury with complete written details of the situation. Treasury will then notify American Express with all details of the situation in accordance with their rules, to prevent the chargeback from being taken from our account, and provide all supporting documents (signed sales slip, return receipt for mail, etc.). If a refund or store credit is given, the form must be filled out stating such, and returned to American Express so that we are not charged twice for the one refund.

A copy of the reply documentation is kept on file by Treasury, who deducts any confirmed chargeback’s from the bank account and records.

Chargeback’s are limited as to time allowed to respond, so they need to be handled swiftly. A response should be made to the credit card company within the time allowed to insure we don’t lose our right to dispute the chargeback.