My Merchant Account Blog

Merchandise Not Received

Thursday, October 04, 2007

This chargeback is one of the more common reasons.  Consumers order a product and then call the issuing bank to inform them and hopefully get the money back.  The issuing back will start the process for you, and usually will credit your account immediately while informing the acquiring bank and the merchant account provider to start the retrieval request and possibly charging you, the merchant, a retrieval request fee.

The easiest way to respond to this chargeback code 30 is to provide the merchant account provider with a signature stating the merchandise was delivered.  This is what the issuing bank will be looking for.  If you do not have this, it is very difficult to prove the product was received.  Some companies require a signature only over a certain amount - this might be something to consider as well.

Specifying a Date of Delivery

This is very popular with a lot of merchants, they want their customers to know when to expect the merchandise.  However, this can work against you.  If you tell the consumer the merchandise will be delivered on Wednesday but it was actually delivered on Thursday, the consumer has a reason for a chargeback. 

The issuing bank will not be looking for proof of delivery but looking for some type of an agreement from the consumer saying it is OK to be received a day later.  Send the consumer an email and get his / her response.  Maybe even consider a fax with a signature stating that it will be OK for the goods to be delivered one day late.

If the consumer keeps the merchandise, you have a case against the consumer.  You can contact the consumer informing them that you are going to sell the chargeback.  If you need help writing your Terms of Service to protect yourself and business and to have the ability to charge fees when you get a fraudulent chargeback by a merchant, contact Jeffrey Cohen.

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