Chargebacks are a demand by a customers financial institution, for a retailer to reimburse for the loss on a fraudulent or disputed transaction, raised by the card holder.
As the merchant provider, SportsTG (STG) are contacted directly by the customers financial institution regarding chargebacks.
There are 2 types of chargebacks received:
1. Disputed transaction
2. Fraudulent order placed using stolen credit card details
Disputed Transaction chargeback process:
- Every Friday STG will email you the disputed transaction details
- You are to contact the customer directly and verify that the order is legitimate/resolve the dispute
- Once resolved with the customer, contact the Ecommerce Manager with order details to advise dispute has been resolved with the customer
- STG finance will then advise the financial institution to close the dispute
Fraudulent Transaction chargeback process:
- The financial institution opens up an investigation and contacts the merchant who processed the order (STG)
- STG finance verifies via database and financial institution records if the order is fraudulent and provides data to financial institution.
- Once confirmed as fraud, the financial institution deducts the funds for the fraud order instantly from the merchant (STG)
- The bank credits the customer's account for the fraud order
- Our finance team contacts clubs individually with an invoice for the funds of the fraud orders + $25 chargeback fee
- Customers have up to 4 months to raise a disputed or fraudulent transaction with their financial institution
- Once confirmed as fraud, it can take the bank another 2 months to process the order as fraud and deduct the funds from the merchant account (STG)
- As soon as the bank confirms the order as fraud and the funds are withdrawn, STG will notify all clients immediately.
How to prevent chargebacks:
Integrating with Kount as our fraud protection service, has dramatically reduced fraud orders across all of our clients.
However fraud can't be eliminated 100%. Kount can only gaurantee 99% protection from fraud.
We suggest for all international orders, to double check these to ensure they are legitimate via the following steps, see article: Fraudulent Transactions
All fraud orders that are shipped, are at the expense of the club.