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How do I defend a dispute?

How do I defend a dispute?

The reason code categories for disputes raised by cardholders determine whether you have a chance to defend the dispute or if it will result in an automatic chargeback. Always adhere to the instructions from Wpay regarding retrievals or chargebacks and submit your responses by the specified deadlines.

When you seek to challenge a dispute, provide as much detail as possible to support your case and increase the chances of a positive outcome.

An email will be sent to your merchant’s email address or in the case of sub-merchants being serviced by a Payfac, the email will be sent to the Payfac’s email address.  The merchant or sub-merchant (in the case of Payfac) should send their response to the Dispute Resolution Team contact details: disptrns@wpay.com.au 

Example of email notification


Please consult the relevant Scheme guides (see Scheme links below) for the complete list of dispute reason codes and suggested evidence to challenge a dispute effectively.

Detailed below are common dispute reasons and suggested evidence to respond with..

For Card Present transaction disputes

Dispute Reason Description Required Actions
No Authorisation / Fraud / Declined Authorisation / Copy of Authority / Counterfeit Fraud

A customer claims they did not authorise or participate in the transaction. This can result from: 

  • A customer’s stolen credit card was used.
  • The customer does not recognise the transaction on their statement.
 Obtain a copy of the invoice/receipt for the transaction and forward it to the Disputes Resolution Team. For Store And Forward (SAF) transactions, ensure to include a signed copy of the receipt.
Duplicate Processing

A customer claims they were charged twice or more for a single transaction. This occurs when:

  • A customer doesn't recognize a second, identical charge appearing on their statement.
  • A Wpay back-end payments issue caused the customer's card to be debited directly.
  1. Review the invoice/receipt for each transaction and verify if it was two separate transactions or a duplicate charge.
  2. If it was a duplicate charge, send evidence to the Disputes Team confirming the chargeback is valid. 
  3. If they were two separate transactions, provide full copies of the invoice/receipts for both. 
  4. If a credit or reversal was already processed, provide documentation indicating the amount and date of the credit/reversal.
Incorrect Amount

The customer claims the amount charged was wrong because: 

  • The transaction amount is incorrect.
  • An addition or transposition error was made during calculation.
  • The amount was altered after the transaction without the cardholder's consent.
  1. Review the invoice/receipt of the transaction and determine if an incorrect amount was charged.
  2. If the claim is valid, confirm to the Disputes Team that it was a valid customer dispute.
  3. If a credit or reversal has already occurred, provide documentation to support the claim (including the amount and date processed).
  4. If the correct amount has been charged, send the invoice/receipt of the transaction to the Disputes Team to defend the charge.

 


**For Card Not Present transaction disputes**

Dispute Reason Description Required Actions
Services not provided / Merchandise not received A customer claims they did not receive all or part of the goods/services purchased. This can be due to non-delivery, lost goods, partial delivery, or the customer forgetting the purchase.
  1. Review the transaction on your platform to verify the goods were delivered at the agreed date and location. 
  2. If the dispute was lodged $>120$ days from purchase, submit the invoice/receipt (disputes outside $120$ days are often invalid under Card Scheme rules).
  3. If the claim is valid, confirm to the Disputes Team the chargeback is valid.
  4. If delivered as ordered, gather the signed delivery docket as confirmation of acceptance.
  5. Collect additional evidence: photos of delivered goods, GPS records, or email correspondence.
  6. Alternatively, resolve directly with the customer and obtain an email confirmation that they no longer dispute the charge.
Not as described / Defective Merchandise The customer claims the received goods/services were different from the online description or were damaged/defective.
  1. Review order details against the delivery record and model numbers to confirm correct dispatch.
  2. Review the goods description/details on your website and validate it against the goods sold.
  3. If invalid, provide copies of all evidence: website screenshots, description of goods, and model numbers on the invoice.
  4. For damaged/defective claims, provide evidence confirming goods were delivered in proper order, and include sales terms and conditions.
No authorisation / Fraud (Card Absent) The customer claims they did not authorise the online transaction, often due to a stolen card or not recognizing the purchase.
  1. Provide proof the transaction was shipped to the same address as a previous undisputed transaction (e.g., signed delivery docket, GPS records).
  2. Provide evidence the cardholder successfully verified their profile/account before the transaction date.
  3. Supply the cardholder's IP address and geographical location at the time of the transaction.
  4. Include the cardholder's name and email address linked to the customer profile.
  5. Include any email conversations with the cardholder.
Duplicate Processing / Incorrect Amount The cardholder disputes the transaction, stating it was processed more than once or the amount charged was incorrect.
  1. Review the customer's transaction on your system to verify duplication or incorrect amount.
  2. Obtain a full copy of the invoice/receipts for both disputed transactions.
  3. If the claim is valid, confirm to the Disputes Team the chargeback is valid.
  4. If a credit or reversal has already occurred, provide proof, including the amount and the date it was processed.


“Compelling evidence” disputes process

Schemes have introduced new processes allowing merchants to provide additional types of evidence during pre-arbitration in cases where the cardholder took part in the transaction.

This can help to reduce chargeback losses related to ‘friendly fraud’ also known as ‘first party fraud’. ‘Friendly fraud’ is when a customer raises a chargeback claiming they don’t recognise the purchase, but then keeps the goods while the charge gets reimbursed.

If ‘compelling evidence’ is provided and flagged in the dispute response the card issuer must attempt to contact the customer with the new information and discuss why they feel a dispute is still valid.

This process applies to the following dispute categories raised in the dispute by the issuing bank:

  • Dispute category 10.4 (Other Fraud – Card Absent Environment)
  • Dispute category 4837 (No cardholder authorisation)

 

Allowable compelling evidence

  1. Evidence, such as photographic or email evidence to prove a link between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services.
  2. For a Card-Absent Environment Transaction in which the merchandise is collected from the Merchant location, any of the following:  
      – Cardholder signature on the pick-up form  
      – Copy of identification presented by the Cardholder  
      – Details of identification presented by the Cardholder
  3. For an Electronic Commerce Transaction representing the sale of digital goods downloaded from a Merchant’s website or application, description of the merchandise or services successfully downloaded, the date and time such merchandise or services were downloaded, and two or more of the following:  
      – Purchaser’s IP address and the device geographical location at the date and time of the Transaction  
      – Device ID number and name of device (if available)  
      – Purchaser’s name and email address linked to the customer profile held by the Merchant
  4. Evidence that the profile set up by the purchaser on the Merchant’s website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction Date  
      – Evidence that the Merchant’s website or application was accessed by the Cardholder for merchandise services on or after the Transaction Date  
      – Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed
  5.  For a Transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery.
  6. For a Mail/Phone Order Transaction, a signed order form.
  7. For a Card-Absent Environment Transaction, evidence that 3 or more of the following had been used in an  undisputed Transaction:  
    • Customer account/login ID  
    • Delivery address  
    • Device ID/device fingerprint  
    • Email address  
    • IP address  
    • Telephone number
  8.  Evidence that the Transaction was completed by a member of the Cardholder’s household or family
  9. Evidence of one or more non-disputed payments for the same merchandise or service
  10. For a Recurring Transaction, evidence of all of the following:  
    • A legally binding contract held between the Merchant and the Cardholder  
    • The Cardholder is using the merchandise or services  
    • A previous Transaction that was not disputed

Scheme links

Mastercard Chargeback Guide: https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/chargeback-guide.pdf

Visa Dispute Resolution Guide: https://www.visa.com.au/content/dam/VCOM/download/merchants/chargeback-management-guidelines-for-visa-merchants.pdf

Amex Chargeback Guide:  
https://www.americanexpress.com/content/dam/amex/au/en/merchant/static/chargebackcodeguide.pdf

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