TSYS Chargebacks

[Eric H]

I received a notice from TSYS about a $25 chargeback. I usually throw them away and don't worry about them. The charge amount isn't worth my time when I can't provide the required information IE: a signed receipt or an invoice showing the customers ship to address.
I've heard 2 different explanations on how Mastercard handles these chargebacks. 1. the Merchant (The carwash) is charged $50-$75 for the chargeback investigation regardless of the outcome. 2. because the charge amount is less than $50 there is no investigation fee. My monthly statement doesn't show any debit regarding chargebacks, as far as I can see.
In any case I don't have anything at the $25 price point so I am inclined to believe that this is a screw-up in the card processor end. I'm not sure how to proceed, do I continue to ignore the chargebacks or do I fax over what little information I do have (the payment voucher from TSYS) and hope that satisfies the inquiry?

 

[GoBuckeyes]

What is the reason listed for the chargeback? Most of mine lately say ‘fraud’. Since we don’t have chip readers and I don’t have a signature there is no way to dispute it. Also, the notice usually arrives about 3-5 weeks after the transaction date. There is no cardholder name so that I could at least keep track and see if it’s a perpetual swindler. And there is no transaction time listed so that I could look up a license plate if I happened to still have the video from that day. Frustrating.

 

[Eric H]

Charge is for $25 which is way over my max charge of $10....I think it is actually an issue with TSYS not my system.
I did call TSYS and asked what the process is. She said to submit what I have, only the payment voucher from their website. She also said if I have insufficient documentation they refund the amount. If they open an investigation then I have to pay the investigation charge which is $50-$75 depending on the amount in dispute. I faxed over what I have along with my phone number just to see what would happen.
I do think I know a little about what happened in this situation. I had a customer call and leave me a message and he immediately called his card to put it into dispute. When I called him back a couple of hours later went into a long, long story about the transaction and I told him I would send him a refund. As I was taking down his address he ask "What happens with the dispute I filed with the credit card company?" I told him I cannot send him a refund because it would be refunded by the card company and I would likely have to pay an investigation fee. I cannot send you $25 and then have the credit card company take back the $25 and then pay an additional $50+, I'd be out $100 or more!
It is a risk we take.

 

[Car_Wash_Guy]

I get maybe 3 per year. I just throw them out. No way to argue it and not worth the time.

 

[Earl Weiss]

.............There is no cardholder name so that I could at least keep track and see if it’s a perpetual swindler.

I will check again but I am pretty sure the last 4 digits of the card are provided.

FWIW I occasionally get this since my in store swiper has not been upgraded yet due to the $2500.00 cost. Waiting for them to get their act together with the gs pumps and do it all at once.

What we really need is a "CLASS ACTION" on behalf of merchants. All the card companies need to do is require a PIN and not the billing zip which is to easy to find. That would stop the fraud and the technology is in place. No reason to make the merchants carry this risk except that it's because of their monopolistic power - they can.

 

[Earl Weiss]

FWIW I always fax in a dispute on their form. I want to cost them time.

 

[br549ms]

The only real action you can take is to turn over to collections agency and go after the customer.
But you must make sure the card was not stolen and it helps to have video.
I would not do it unless a particular customer repeats it.

I have thought about placing a still shot or video of them using the card on our Facebook page!

 

[br549ms]

Also we never give cash refund to customers who used a card. We will refund the card on our system and then we have a record of the purchase and the refund if there is a dispute.

 

[Earl Weiss]

The only real action you can take is to turn over to collections agency and go after the customer.

You often do not have the customers name let alone an address or phone number. Once I had the signed slip and the customer had an unusual name so i found and called the customer who told me the card company issued a card in his name and sent it to another address causing him huge headaches. So, the card issuer screwed up and the merchant gets to eat it. We need a class action.