How does dispute process between a Finanical org like a bank and merchant work??
Posted on September 12th, 2009 by admin
I have been recently ripped off by guys in Tokyo for around 1500$. They got hold of my Visa number and did transactions over the weekend. Bank alerted me on Monday morning and asked if I were in Tokyo. Hell no! I am in US. Bank had me sign the affidavit and all the paperwork and deposited the money provisionally into my account and are now disputing the transactions. How does the dispute process work between the bank and the guy who made those transactions. Visa sure does have the Merchant ID and related stuff of people in Tokyo who made the transactions. How are they going to hunt them down? Will they be successful in doing so most of the time? If they are not what will happen? Will the bank write it off as a loss or cut my money? Any pointers or detailed explanations of the whole process of dispute will be very much appreciated
Visa and MasterCard’s number one goal is to protect the customer. The bank will contact the merchant and request information about the transaction. They will look at how the transaction was processed. Was it swiped? Hand keyed in? Those are the factors they want to know. They want to merchant to prove the legitimacy of the transaction. To the merchant it will be seen as a chargeback , and merchants will do their best to fight that chargeback. Too many of those and they can get their merchant account revoked. In your case, you will most likely win the dispute. You will keep your money. Visa will eat the loss (not really, losses are built into the APR). The merchant will get a chargeback on their account, and lose the merchandise that was bought. It will be up to the merchant to report the criminal to the police. Visa will not hunt them down, only provide evidence.
September 12th, 2009 at 6:55 am
Visa and MasterCard’s number one goal is to protect the customer. The bank will contact the merchant and request information about the transaction. They will look at how the transaction was processed. Was it swiped? Hand keyed in? Those are the factors they want to know. They want to merchant to prove the legitimacy of the transaction. To the merchant it will be seen as a chargeback , and merchants will do their best to fight that chargeback. Too many of those and they can get their merchant account revoked. In your case, you will most likely win the dispute. You will keep your money. Visa will eat the loss (not really, losses are built into the APR). The merchant will get a chargeback on their account, and lose the merchandise that was bought. It will be up to the merchant to report the criminal to the police. Visa will not hunt them down, only provide evidence.
References :
http://www.ballisticmerchantservices.com/chargeback_and_retrieval_information.asp