Chargebacks & Disputes
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Prime Merchant Group
Effective Date: October 6, 2025
Contact: sales@primemerchantgroup.com
Overview
A chargeback is a payment reversal initiated by a cardholder’s issuing bank under card-network rules (Visa, Mastercard, American Express, Discover). It’s different from a merchant-initiated refund. Your Acquirer (and its designated processors) administer deadlines, evidence requirements, and fees. PMG (powered by NMI) provides tools and reporting, but we do not decide chargeback outcomes.
Roles at a glance
Cardholder & Issuer: The cardholder disputes a transaction; the issuing bank evaluates and may debit funds.
Card Networks: Define dispute codes, workflows, and timelines.
Your Acquirer (and its designated processors): Debits funds, sets response deadlines, and routes evidence.
PMG/NMI: Provide gateway logs, tokens, 3-D Secure indicators (if enabled), and reporting—not adjudication.
Merchant (you): Gathers evidence, responds on time, and implements prevention.
Typical timeline (varies by program)
Notification: You’ll receive a dispute notice in your Acquirer portal and/or by email.
Evidence window: You usually have a short window to respond (often 7–14 days from notice; exact dates are in your Acquirer portal).
Representment: Submit your evidence package once per dispute cycle; additional stages may occur depending on the network.
Decision: Issuer or network rules determine the outcome; funds are either returned or the chargeback stands.
Important: Always follow the dates and instructions shown in your Acquirer portal. Those control.
Fees & monitoring programs
Chargeback/alert fees: Set by your Acquirer and deducted per dispute/alert.
Excessive disputes: High ratios can trigger network monitoring programs and additional assessments. Work to keep disputes low with the prevention steps below.
Your responsibilities
Monitor your Acquirer portal daily for new disputes.
Respond before the deadline with a complete, organized evidence package.
Keep clear store policies (refunds, cancellations, delivery terms) visible to customers.
Maintain strong fraud controls (see Prevention).
Evidence checklist (include what applies)
Transaction details: date/time, amount, authorization code, AVS/CVV results, gateway/NMI transaction ID.
3-D Secure data (if enabled): authentication value, ECI, liability-shift indicator.
Order proof: invoice/receipt, item or service description, pricing, terms accepted at checkout.
Customer communications: emails, chat logs, support tickets.
Delivery/usage proof (card-present or shipped goods): carrier tracking, signature confirmation, geolocation/device data, IP logs, download or login logs, service access logs.
Policies shown at purchase: refund/cancellation terms, return window, restocking fees.
Refund records: if you refunded, include timestamp and reference.
Prevention best practices
Use 3-D Secure for e-commerce where appropriate.
Enable AVS/CVV checks and decline high-risk mismatches.
Add fraud screening (velocity limits, risk scoring) and block card-testing patterns.
Keep a clear descriptor and contact info so customers recognize charges.
State refund/return and delivery terms prominently (and honor them).
For shipped goods, require tracking (and signatures for high-value).
For subscriptions, send up-front disclosures and upcoming charge reminders; make cancellation easy.
Respond quickly to pre-dispute alerts (if your Acquirer provides them) to issue refunds and avoid full chargebacks when appropriate.
Refunds vs. chargebacks
If a chargeback has already been opened, issuing a refund will not automatically close it and may increase your loss. Check your Acquirer portal instructions before refunding after a dispute is in process.
How PMG helps
Gateway logs & reporting to support evidence.
3-D Secure and risk tools (if enabled) to reduce fraud and help shift liability.
Support: We’ll help you locate data in the PMG/NMI portal and interpret common dispute codes.
Need assistance?
Evidence or portal help: sales@primemerchantgroup.com
Please include the dispute case number, transaction ID, and the deadline shown in your Acquirer portal.