I just received word that the regulations are being overhauled to address these unfair chargeback practices. This shift happened because you refused to stay silent and I am truly humbled by the persistence you showed throughout this process.
April 17, 2020
Re: Unfair chargeback rules, regulations, policies and procedures issued by MasterCard, Visa, Discover and American Express condoning "Friendly Fraud"
Final supporters
Congressmen Hensarling and Roskam,
I am writing this to you as one of the millions of merchants (voters) across the USA who accept credit cards for payment. As you have been made aware in the last few years many card issuing banks have begun rejecting legitimate chargeback replies even though merchants are filling the replies out in great detail proving the original charge is legitimate and the chargeback complaint should be removed and decided in favor of the merchant. It has gotten so bad that on some of the chargebacks a 5 year old child could see that the cardholder is simply trying to steal merchandise and/or services from the merchant. It has been reported to us and verifed that many of the larger banks are understaffed and don't even read the merchant's reply to a chargeback. They are just "hitting the rejected key" and denying the chargeback reply. Also some of the larger card issuing banks are allowing cardholders to initiate a chargeback online without even talking to a bank representative who can quiz them about the validity of filing a chargeback. Frivolous chargebacks allowed to be presented by the card issuing bank are an obvious violation of Federal Regulations E and Z. They are also a form of felony theft by the cardholder. This is causing merchants and the US Government billions of dollars in lost revenue. It is estimated that in 2014 US merchants lost 11.8 Billion dollars to "friendly fraud!"
Also the card associations' chargeback procedures leave much to be desired. In the typical non efficient ways of MC/Visa/Discover nothing official ever comes if you win. Only if you lose. Incidentally the cardholder's issuing bank makes the determination not the merchant's credit card company. Kind of a kangaroo court! American Express is somewhat better on these issues because they see both sides of the transaction.
We also need a better way to monitor the chargeback progress after it has been filed. Currently there is basically nothing. The merchant never is notified if their chargeback reply has been accepted by the card issuer. Basically "no news is good news" They are only notified if their reply has been rejected.
Another serious issue is the amount of time that a cardholder can still file a chargeback. While generally 120 days which is much too long in certain cases the card issuer can extend even that. The bottom line is that
it's a minimum of 120 days, and in some rare cases a cardholder can make a
chargeback years after the transaction date.
And besides "Friendly Fraud" we need a better way to check the validity of all online (eCommerce) and phone orders for outright fraud (identity theft) which would also help in replying to "friendly fraud" chargebacks. Currently the call centers the card associations have for merchants to check the validity of credit cards are staffed by extremely untrained personnel incapable of answering the simplest question. In addition to address and zip code check we need to be able to check the cardholder's name, phone and email address currently not offered by MC/Visa/Discover. American Express does offer name, phone and email address verification.
We also need the card associations MC/Visa/Discover/American Express to recognize email delivery of merchandise as valid Proof of Delivery.
The verification for foreign cards is even worse causing merchants to decline many legitimate foreign card orders which loses millions of dollars in revenue for merchants and tax revenues for the US Government.
To add insult to injury with the new EMV Chip card regulations for face to face transactions if a merchant swipes the mag strip on a chip card instead of using the chip function on their credit card terminal or POS and they receive a chargeback for any reason no chargeback replies will be accepted by the card issuing banks. They automatically reject the chargeback reply and give Reason Code: 4870 - CHIP LIABILITY SHIFT.
We would also like to see a user friendly way for merchants to report cardholders for felony theft and prosecution. Currently most Police Departments ignore these requests even if the theft committed is in the six figures.
The airline industry has taken a first step in forcing Visa to modify their policies and procedures. Dishonest cardholders are using their tickets to fly and after they return filing chargebacks and actually winning even though the airlines provide documented evidence the cardholder used their tickets thereby defrauding (stealing) from the airlines.THAT'S how bad this has gotten! http://www.eturbonews.com/60006/visa-amends-rules-help-airlines-reduce-card-not-present-fraud
Feel free to contact me for more details.Respectfully,
Updates
March 16, 2020
I checked the count just now and saw we hit 250 signatures. When I started this I honestly thought it would just be me shouting into the void so seeing that so many of you are dealing with this same frustration is truly overwhelming.
Reached 250 supporters
March 16, 2020
March 14, 2020
I never imagined this many people would join me in speaking up about these unfair chargeback policies. If you can help get this page in front of a few more eyes right now, it might be enough to push us over our next goal.
Reached 100 supporters
August 11, 2015
August 10, 2015
I really never imagined this would gain such traction so quickly and I have to thank you for bringing this much attention to the issue. If you know anyone else struggling with these unfair policies could you consider sending them the link today so we can hit our first big milestone.
79 Comments
With e-delivery becoming more prevalent in my industry and yet the Credit Card companies using it as an excuse for friendly fraud, I feel like I'm fighting an uphill battle. Glad to know I'm not alone.
I am a provider of merchant accounts for online merchants. I have been in the Merchant Industry for 25 years. It saddens me to see how most merchants have become a "victim" in this current process.
In addition to tens of thousands of dollars in lost revenue annually, we continue to respond to each and every charge back. We spend a lot time researching the issues and submitting proper documentation, but the banks don't care.
This has been a problem for quite some time. There's no one to stand up for the merchants. I'm a small family run company that works on very tight profit margins. One chargeback could wipe out our profit for days worth of business. It's not fair.
The system is rigged against the merchant. IF the credit cards want to offer no fraud loss then they should have to pay for it not us the small merchant. Plus to show how bad the game is fixed we have won civil suites against cardholders that did frivolous chargebacks and won we should not have to take someone to court for our funds
The Banks need to be held accountable.
Many frivolous chargebacks and if allowed to be continued are obvious violation of Federal Regulations E and Z! Card issuing banks are not allowed to encourage and condone “friendly fraud". Your cardholder received our merchandise in a timely manner, used it and is now trying to do a chargeback basically committing felony theft on us the merchant. If this chargeback is not dismissed by you it will be immediately reported mentioning your bank to the proper authorities including The Federal Reserve and Attorney General in your state. Please find relevant links below to this matter. TSYS chargeback guidelines http://www.tsys.com/Downloads/upload/TSYS-WP-DisputeChargeback.pdf Report banks for frivolous chargebacks which is a violation of Federal Regulation E and Z http://www.federalreserveconsumerhelp.gov/ More complaint info at http://www.federalreserveconsumerhelp.gov/about/ConsumerHelponline.pdf
Share Petition
Don't stop at signing, share the petition link with friends to multiply our impact
Copy link or share directly
I just received word that the regulations are being overhauled to address these unfair chargeback practices. This shift happened because you refused to stay silent and I am truly humbled by the persistence you showed throughout this process.
April 17, 2020
Re: Unfair chargeback rules, regulations, policies and procedures issued by MasterCard, Visa, Discover and American Express condoning "Friendly Fraud"
Final supporters
Congressmen Hensarling and Roskam,
I am writing this to you as one of the millions of merchants (voters) across the USA who accept credit cards for payment. As you have been made aware in the last few years many card issuing banks have begun rejecting legitimate chargeback replies even though merchants are filling the replies out in great detail proving the original charge is legitimate and the chargeback complaint should be removed and decided in favor of the merchant. It has gotten so bad that on some of the chargebacks a 5 year old child could see that the cardholder is simply trying to steal merchandise and/or services from the merchant. It has been reported to us and verifed that many of the larger banks are understaffed and don't even read the merchant's reply to a chargeback. They are just "hitting the rejected key" and denying the chargeback reply. Also some of the larger card issuing banks are allowing cardholders to initiate a chargeback online without even talking to a bank representative who can quiz them about the validity of filing a chargeback. Frivolous chargebacks allowed to be presented by the card issuing bank are an obvious violation of Federal Regulations E and Z. They are also a form of felony theft by the cardholder. This is causing merchants and the US Government billions of dollars in lost revenue. It is estimated that in 2014 US merchants lost 11.8 Billion dollars to "friendly fraud!"
Also the card associations' chargeback procedures leave much to be desired. In the typical non efficient ways of MC/Visa/Discover nothing official ever comes if you win. Only if you lose. Incidentally the cardholder's issuing bank makes the determination not the merchant's credit card company. Kind of a kangaroo court! American Express is somewhat better on these issues because they see both sides of the transaction.
We also need a better way to monitor the chargeback progress after it has been filed. Currently there is basically nothing. The merchant never is notified if their chargeback reply has been accepted by the card issuer. Basically "no news is good news" They are only notified if their reply has been rejected.
Another serious issue is the amount of time that a cardholder can still file a chargeback. While generally 120 days which is much too long in certain cases the card issuer can extend even that. The bottom line is that
it's a minimum of 120 days, and in some rare cases a cardholder can make a
chargeback years after the transaction date.
And besides "Friendly Fraud" we need a better way to check the validity of all online (eCommerce) and phone orders for outright fraud (identity theft) which would also help in replying to "friendly fraud" chargebacks. Currently the call centers the card associations have for merchants to check the validity of credit cards are staffed by extremely untrained personnel incapable of answering the simplest question. In addition to address and zip code check we need to be able to check the cardholder's name, phone and email address currently not offered by MC/Visa/Discover. American Express does offer name, phone and email address verification.
We also need the card associations MC/Visa/Discover/American Express to recognize email delivery of merchandise as valid Proof of Delivery.
The verification for foreign cards is even worse causing merchants to decline many legitimate foreign card orders which loses millions of dollars in revenue for merchants and tax revenues for the US Government.
To add insult to injury with the new EMV Chip card regulations for face to face transactions if a merchant swipes the mag strip on a chip card instead of using the chip function on their credit card terminal or POS and they receive a chargeback for any reason no chargeback replies will be accepted by the card issuing banks. They automatically reject the chargeback reply and give Reason Code: 4870 - CHIP LIABILITY SHIFT.
We would also like to see a user friendly way for merchants to report cardholders for felony theft and prosecution. Currently most Police Departments ignore these requests even if the theft committed is in the six figures.
The airline industry has taken a first step in forcing Visa to modify their policies and procedures. Dishonest cardholders are using their tickets to fly and after they return filing chargebacks and actually winning even though the airlines provide documented evidence the cardholder used their tickets thereby defrauding (stealing) from the airlines.THAT'S how bad this has gotten! http://www.eturbonews.com/60006/visa-amends-rules-help-airlines-reduce-card-not-present-fraud
Feel free to contact me for more details.Respectfully,
Updates
March 16, 2020
I checked the count just now and saw we hit 250 signatures. When I started this I honestly thought it would just be me shouting into the void so seeing that so many of you are dealing with this same frustration is truly overwhelming.
Reached 250 supporters
March 16, 2020
March 14, 2020
I never imagined this many people would join me in speaking up about these unfair chargeback policies. If you can help get this page in front of a few more eyes right now, it might be enough to push us over our next goal.
Reached 100 supporters
August 11, 2015
August 10, 2015
I really never imagined this would gain such traction so quickly and I have to thank you for bringing this much attention to the issue. If you know anyone else struggling with these unfair policies could you consider sending them the link today so we can hit our first big milestone.
79 Comments
Digital signatures and recipients of IP address are used to convict criminals yet are not given any sway when it comes to verifying purchases? Makes absolutely no sense what-so-ever. This needs to be addressed as this directly impacts not only our industry, but our GDP.
With e-delivery becoming more prevalent in my industry and yet the Credit Card companies using it as an excuse for friendly fraud, I feel like I'm fighting an uphill battle. Glad to know I'm not alone.
I am a provider of merchant accounts for online merchants. I have been in the Merchant Industry for 25 years. It saddens me to see how most merchants have become a "victim" in this current process.
In addition to tens of thousands of dollars in lost revenue annually, we continue to respond to each and every charge back. We spend a lot time researching the issues and submitting proper documentation, but the banks don't care.
This has been a problem for quite some time. There's no one to stand up for the merchants. I'm a small family run company that works on very tight profit margins. One chargeback could wipe out our profit for days worth of business. It's not fair.
The system is rigged against the merchant. IF the credit cards want to offer no fraud loss then they should have to pay for it not us the small merchant. Plus to show how bad the game is fixed we have won civil suites against cardholders that did frivolous chargebacks and won we should not have to take someone to court for our funds
The Banks need to be held accountable.
Many frivolous chargebacks and if allowed to be continued are obvious violation of Federal Regulations E and Z! Card issuing banks are not allowed to encourage and condone “friendly fraud". Your cardholder received our merchandise in a timely manner, used it and is now trying to do a chargeback basically committing felony theft on us the merchant. If this chargeback is not dismissed by you it will be immediately reported mentioning your bank to the proper authorities including The Federal Reserve and Attorney General in your state. Please find relevant links below to this matter. TSYS chargeback guidelines http://www.tsys.com/Downloads/upload/TSYS-WP-DisputeChargeback.pdf Report banks for frivolous chargebacks which is a violation of Federal Regulation E and Z http://www.federalreserveconsumerhelp.gov/ More complaint info at http://www.federalreserveconsumerhelp.gov/about/ConsumerHelponline.pdf
Share Petition
Don't stop at signing, share the petition link with friends to multiply our impact
Petitions like this
Other petitions you might want to support
Scan to share
Anyone who scans this can sign the petition.
Digital signatures and recipients of IP address are used to convict criminals yet are not given any sway when it comes to verifying purchases? Makes absolutely no sense what-so-ever. This needs to be addressed as this directly impacts not only our industry, but our GDP.