Find out about chargebacks and your responsibilities as a merchant
A chargeback happens when a cardholder disputes a transaction with their credit card issuer (e.g., Visa), because they don’t believe that the charge is valid.
This procedure removes the transaction amount from the merchant’s financial institution (e.g., Desjardins) and returns it to the cardholder while an investigation is conducted.
Everyone involved must respect the time frames and regulations governing disputed transactions.
01 What you can do to avoid chargebacks
When you accept card-not-present transactions, you’re also accepting risks that go along with it, which include the loss of income from chargebacks.
Be on the alert when…
- The transaction amount is higher than usual.
- The order consists of expensive or identical items that can easily be sold for cash.
- They request immediate delivery, or the customer wants to pick it up in-store.
- The delivery address is abroad, or several different addresses are provided.
- The customer uses several credit cards to pay.
- Several transactions are carried out on one card in a short period.
02 Common reasons for chargebacks
- Card not present: The transaction was processed without the use of a physical card.
- Dispute: The cardholder doesn’t recognize the transaction.
- Credit not processed: The cardholder was not given the credit they are owed.
- Merchandise was defective or not as described: The goods received are defective or don’t match their description.
- Transaction exceeds credit limit: The transaction is invalid; the card issuer declined or failed to approve the transaction
- Merchandise not delivered by the expected date: The client did not receive the delivery by the agreed date.
03 Processing chargebacks
Contact us within 5 days after your account is debited, so we can investigate your claim.
If you have any of the following evidence, please send it to us to speed up the process:
- Compliant transaction receipt with the merchant name and contact information, the authorization number, the card imprint, the customer’s signature and the transaction amount
- The details of the customer’s order
- Proof that a credit was issued
- Proof that the cardholder accepted the condition or description of the merchandise at purchase or delivery
- Proof that the transaction was made by someone residing at the cardholder’s address
- Signed proof that the merchandise was delivered or that another date was agreed to (e.g. signed acknowledgement of receipt)
- Any other relevant proof
Fax us the above items no later than 5 days after you receive a letter notifying you of the adjustment to your merchant account.
If your claim is accepted:
You’ll receive a refund for the chargeback amount.
If your claim is refused:
You’ll receive a letter explaining why, and the amount will not be returned to you.
see our fraud prevention tips
Fraud prevention [PDF 1,6 MB]