Information on defending a Chargeback with RMS Pay.
Overview
If the cardholder (your guest) disputes a transaction on their account and requests a reversal of that payment, that reversal is known as a chargeback.
Pending acceptance or successful defence by you (the Property), that payment will be provisionally reversed. It’s during this window that you have the opportunity to submit a defence against the chargeback, and you can do that all within RMS, exclusively with RMS Pay.
Why do chargebacks occur?
The most common reasons for chargebacks include:
- Attempted fraud
- Service complaints
- Billing errors
- Authorisation issues
How to minimise the risk of chargebacks
Your best practice knowledge is the best defence against chargebacks, but there are security features built into RMS Pay that are also designed to minimise risk.
- PCI DSS compliance
- 3DS
- Chargeback Dashboard
Key Features and Benefits
Central Chargeback dashboard
- Alerts you if you receive a chargeback
- Track pending and undefended disputes
- Review submitted disputes
Security
- Secure and 3DS protected
- Documentation stored in your guest’s profile
End-of-day
- Automatically adjusts settlement and payout reports
How to Defend a Chargeback
Defending your property against chargebacks is easy, with the RMS Pay Chargeback Dashboard.
Guide
Chargeback Dashboard
Locate chargebacks within your PMS to easily manage and monitor your progress.
- Go to Accounting>RMS Pay>Chargebacks
- Select a filter to narrow results
Supporting Documentation
You’ll need to submit different documents to support your defence, depending on the chargeback type.
| Chargeback Type | Supporting Documents |
|---|---|
| Fraud - Card Absent Transaction The cardholder claims that they did not authorise or participate in the transaction. |
|
|
Fraud - Card Present Transaction The cardholder claims that they did not authorise or participate in the transaction in a card-present environment. |
Copy of a signed transaction receipt from the RMS Pay terminal. |
|
Duplicate Processing/Paid by Other Means The cardholder claims that a single transaction was processed more than once. |
|
|
Service Not Provided The cardholder claims that merchandise or services they ordered were not received or not received on time. |
|
|
Cancelled Service The cardholder's bank received a notice from the cardholder stating that they cancelled services or returned the merchandise, but the credit has not appeared on the cardholder's statement |
|
|
Misrepresentation of Goods or Services The cardholder claims that the terms of sale (Terms & Conditions) were misrepresented. |
|
Documentation File Format
To prepare your documents for submission, you’ll need to make sure they’re in the correct format, with all documents consolidated into a single file.
- JPG (Maximum file size 10MB)
- TIFF (Maximum file size 10MB)
- PDF (Maximum file size 2MB)
The following document formats apply to each card issuer:
- Diners & Discover: Maximum file size is 3MB.
- Mastercard: The document must not be more than 19 pages.
- Klarna: Only accepts PDF file format.
Submit your Defence
Once you’ve got your documents prepared, you’ll be ready to submit your defence for consideration.
In the side menu of RMS, go to Accounting > RMS Pay > Chargebacks.
- Select your Property (Optional)
- Select the 'Chargeback Status' as 'Undefended'.
-
Double-click a Chargeback to view.
-
Select the 'Defend' icon.
- Select the 'Brows' icon. ( ... )
- Select the Supporting Documents.
-
Select the 'Upload Documents' icon.
⚠ Important: After this point, you can not add any further documentation. If you have anything extra to add, do so before you click 'Submit'. - Confirm and Submit your "Chargeback Defence"
To ensure your defence is solid, RMS Pay will only let you submit it when all of the required documentation has been uploaded. - The chargeback will appear in the 'Submitted' view until the case progresses.
Additional Information
A chargeback defence may only be submitted once sufficient supporting documentation has been uploaded. Once submitted, no further documentation can be added to support the chargeback defence.
The chargeback will initially appear in the 'Submitted' view and can be tracked in Chargeback Management as the case progresses. A notification will also appear in the Message Centre as the chargeback case progresses.
If the card issuer rejects the provided supporting evidence or the evidence is challenged by the cardholder, the chargeback will enter a pre-arbitration case filing to be reviewed by the card scheme.
In the event of pre-arbitration, Diners will charge the losing party a $500 USD fee.
Payouts and Settlement
Payout
When a chargeback is issued to a property using RMS Pay, the bank will deduct the value of the disputed transaction until it is successfully defended by the property.
Your payout amount in RMS will be reflected on the accounting date that the chargeback was issued (less the value of the chargeback).
If the chargeback is successfully defended by the property, the bank will return the funds, and the chargeback value will be included in the payout amount for that accounting date.
Settlement
To view transactions processed in RMS Pay and forecasted payouts, head to the RMS Pay Settlement Report.
To generate your settlement report:
- In the side menu of RMS, go to Reports > Management > Financial > RMS Pay Settlement Report.
- Select a Report Option of 'By Settlement Date', 'By Accounting Date', or 'Batch ID'.
- Choose a Date Range or enter the Batch ID.
- Select a Report Type.
- Select ‘Build’.
If a chargeback processed for a particular accounting date is greater than the number of payments taken, the payout amount will be in a negative value, and no funds will be transferred.
The payout amount for RMS Pay is a cumulative balance, and any debits will be brought forward to future accounting dates. No payout will occur until there is a credit balance from transactions processed using RMS Pay.
Chargeback Dispute Timeframes
The process and timeframe for disputes vary by card scheme. The table below outlines the general guidelines for each scheme.
| Scheme | Days in Chargeback Stage | |||
|
Property Response Deadline (From the Request for Information (RFI) date) |
Card Issuer Initiates First Chargeback (From the initial transaction date) |
Property Response to First Chargeback (From the Notification of Chargeback (NoC) date) |
Final Decision—Chargeback Reversed or Second Chargeback (From the Chargeback Defence date) |
|
| AMEX | 14 | 120 | 14 | 50 |
| Diners | 18 | 120 | 25 | 60 |
| Discover | 18 | 120 | 25 | 80 |
| JCB | 18 | 120 | 40 | 50 |
| Mastercard | N/A | 120 | 40 | 70 |
| UnionPay | 30 | 180 | 30 | 20 |
| Visa | N/A | 120 | 18 (USA & Canada = 9) |
60 |
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