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Education

Help card-present was not delivered as intended? Transactions are done

face-to-face with an EMV chip reader; there is no de-
merchants fight livery happening. How can a cardholder dispute that
goods and services were not provided after a bar-
tender clears away empty glasses or a server removes
chargeback scams Prove it
empty plates?

In all cases, payment card issuers that dispute or inquire
about transactions are asking for "proof" that the card was
present by showing that the card was processed correctly
and not key entered. This is frequently a bogus request,
particularly when the issuer can plainly see a transaction
was processed correctly as an EMV or smartcard chip
transaction.

And claims that the cardholder or customer was expecting
a delivery are also nonsense when a customer was clearly
present at the business and physically inserting an EMV
card.

Issuers may ask for a bill and or invoice to prove a
By Allen Kopelman transaction was processed correctly and was not billed
Nationwide Payment Systems Inc. after the regulatory time limit had expired or processed
using an incorrect transaction currency code. The trouble
hile most stories you read about friendly with these disputes and inquiries is they are time-
fraud pertain to ecommerce and card-not- consuming energy zappers that create extra work for busy
present transactions, there is a real issue retail and hospitality merchants who must respond with
W happening at card-present businesses. physical proof within a very narrow time frame.
Merchants deal with these scams on a daily basis, and
they are desperate to get help with this. We discussed this issue on episode 99 of B2B Vault: The
Payment Technology Podcast, titled "Small Business & Credit
It's shocking to discover that card issuers are the top Card Chargebacks." The episode is available on all major
purveyors of chargeback fraud, taking advantage of streaming platforms and Spotify at https://spotifyanchor-
the good faith of merchants who process credit card web.app.link/e/m242tvVslwb.
transactions and produce billions in legitimate payment
card revenue. Here are some examples: Excessive tip chargebacks
• Duplicate charges: Merchants are being charged In previous articles, I've also described how hospitality
multiple times for the same transaction. One custom- businesses, restaurants, bars and nightclubs are losing
er reportedly had two or more charges for a single money when customers tip over 20 percent. Many of the
sale. card issuers charge back the transaction instead of simply
asking the customer to authorize the additional over 20
• Excessive tip chargebacks: Merchants who batch percent.
out transactions with tips over 20 percent are getting
charged back. For example, if a restaurant or bar tab A few of my credit cards will send a text and ask me if I
was $100 and the customer left a $40 tip, $20 would be meant to leave this tip and give me the option of texting
charged back to the merchant. 1 for yes and 2 for no. In today's day and age, you would
think more card issuers would have the technology to
• Point of interaction: Merchants may receive claims handle such a simple function.
that a credit card was charged the wrong amount
or that a customer paid with a different payment We explored this issue further in episode 115 of B2B Vault:
method. These claims can be disproven but it takes The Payment Technology Podcast on Oct 11, 2022, after I had
time and effort for a merchant to respond to every read about this issue in quite a few social media posts.
retrieval request. The episode is available at https://spotifyanchor-web.app.
link/e/ZP9ypskslwb. My recent article in the Dec. 26, 2022
• Incorrect amount: Merchants must provide a sales issue of The Green Sheet, www.greensheet.com/emagazine.
ticket showing a correct amount was billed. php?article_id=7141, takes a deeper dive into high tips and
how merchants can protect themselves from losing money.
• Goods or services not as expected: Seriously, how
can a restaurant patron claim that a cocktail or meal

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