Chargeback Management Guide

We understand how challenging managing disputes can be. To help you navigate this issue, we’ve compiled a comprehensive guide that covers everything you need to know about chargebacks, including prevention tips and how to handle them if they occur.

By following best practices and utilizing advanced security features, merchants can minimize the impact of chargebacks on their business operations.

• Understanding Chargebacks: Learn what chargebacks are and why they happen.
• Best Practices: Discover practical steps to verify transactions and reduce the likelihood of chargebacks.
• Advanced Security: Information on security features like AVS, 3D Secure, and Hosted Checkout.

What is a Chargeback?

It is the reversal of funds from a merchant to a customer, typically initiated by the cardholder's bank in response to a dispute filed by the cardholder.

Chargebacks can occur for various reasons:

1. Order was not received
2. Damaged or defective merchandise
3. Product is not as described
4. Incorrect billing
5. Unauthorized charges
    

Forms of Evidence:

• Proof of Delivery
• Transaction Records
• Communication Records
• Signed Documents
• Photographic Evidence
• Terms of Use & Policies

Best Practices
Preventing Chargebacks

In-Store Operations

1. Verify Payment Card upon Pickup/Delivery: Ensure the last four digits on the card match the Order Queue receipt.
   
   
2. Verify ID: Ensure it is valid and that the name matches the credit card.
   
   
3. Confirm Order: Before completing the transaction, repeat the order back to the customer + inspect product(s).
   
   
4. Get Customer to Sign Receipt: The signature should match what's shown on the ID or credit card. Keep your receipts organized.
    
5. Practice Due Diligence: Staff should be aware of store policies and be able to communicate this to customers. Be extra vigilant with new customers.
   
   

Using Buddi Features

1. Keep Track of New Customers: In the Order Queue, new customers are tagged with a green icon next to their name: 
2. Add Disclaimers in Buddi: Notify customers about your store policy before they place an order. There are several areas to add custom messages that are very visible:
   
   Custom Pickup Message:

• This is the main message that appears on the checkout page.
• The default message is "Please pay and pickup your order in store."
• The message can be edited in the Admin Portal > Store Settings > Online Menu: Configuration.
  e.g. *** NOTE: PAID ORDERS ***
  For legal reasons, the name on your order MUST match your ID and payment card, and you must be present for pickup. Please have your ID and payment card ready.
  
  Orders will be cancelled and refunded if you can't show this to staff upon pickup.
   
  
  Subtle Place Order Text:
• This disclaimer appears below the 'Place Order' button on the checkout page.
• It is blank by default (no message).
• The message can be edited in the Admin Portal > Store Settings > Online Menu: Configuration.
  e.g. *** NOTE: PAID ORDERS *** Your ID and payment card used must be shown to staff when picking up the order.
  
  Customer Notifications:
• These messages are sent to customers via SMS/Email to notify them about their order.
• You can send reminders about your store policy using this tool.
• The default messages can be edited in the Admin Portal > Store Settings > Online Menu: Messages.
  e.g. *** REMINDER: PAID ORDERS *** Your ID and payment card used must be presented to staff when you come to pick up your order.

Advanced Security Features

Store owners should consider adding security features* with their payment processor to enhance protection against chargebacks.

1. AVS Check: helps verify the address of a person claiming to own a credit card.
2. 3D Secure: adds a layer of authentication at checkout, making unauthorized transactions less likely.
3. Hosted Checkout: provides a secure payment environment managed by your payment processor.
    

- Buddi is integrated with Merrco and Moneris for 3D Secure.
- We also have Hosted Payments available for Merrco users.
- Advanced security features must be enabled on both ends to work (payment provider + Buddi).

While this guide will equip you with key information on preventing and managing chargebacks, please remember that specific inquiries regarding payment disputes should be directed to your payment processor, as they are best equipped to assist you with these matters.