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related to fraud investigations.Subsequent Chargebacks for"non We strongly recommend that you indude a dE` " ' ' " '' " ' <br /> receipt of requested item relating to a transaction for fraud request" with all pertinent documents when respondin 6.1.D. - Page 27 <br /> cannot be contested or represented. or a Chargeback notification(e.g.,rental agreement,imprintea portion of <br /> 10.1.3. Chargeback Process. Regardless of whether you respond to a the invoice or Sales Draft;the portion signed by the Cardholder;and the <br /> Transaction Documentation Request,a Chargeback may be debited to your area where the authorization codes,with amounts and dates,are located). <br /> Settlement Account for numerous reasons(see below).If the Card Issuer Due to the short time frames and the supporting documentation necessary <br /> submits a Chargeback,we will send you a Chargeback notification,which to successfully(and permanently)reverse a Chargeback in your favor,we <br /> may also include a request for transaction documentation.Due to the strongly recommend the following: <br /> short time requirements imposed by MasterCard,Visa and Discover,it . Avoid Chargebacks by adhering to the guidelines and procedures <br /> is extremely important that you respond to a Chargeback notification outlined in these Operating Procedures. <br /> and Transaction Documentation Request within the time frame set <br /> forth in the notification.Do not process a credit transaction once a • If you do receive a Chargeback,investigate,and if you dispute the <br /> Chargeback is received;the Card Issuer will Credit the Cardholder's account. Chargeback,submit the appropriate documentation within the <br /> required time frame. <br /> If the information you provide is both timely and,in our sole discretion, , Whenever possible,contact the Cardholder directly to resolve the <br /> sufficient to warrant a representment of the transaction and/or reversal of dispute,unless the dispute relates to a Discover Cardholder,in which <br /> the Chargeback,we will do so on your behalf.However,representment case direct contact with the Discover Cardholder regarding the dispute <br /> and/or reversal is ultimately contingent upon the Card Issuer and/or is prohibited by Discover Association Rules. <br /> Cardholder accepting the transaction under applicable Association <br /> guidelines.Representment or reversal is not a guarantee that the • If you have any questions,call Customer Service. <br /> Chargeback has been resolved in your favor. 10.1.4. Chargeback Reasons. The following section outlines the <br /> For Visa Chargebacks: If we reverse the Chargeback and represent the most common types of Chargebacks.This list is not exhaustive.For ease <br /> transaction to the Card Issuer,the Card Issuer,at its sole discretion,may of understanding,we have combined like Chargebacks into seven <br /> elect to submit the matter for arbitration before Visa.Visa currently charges groupings.We have included recommendations on how to reduce the <br /> a$250 filing fee and a$250 review fee.If a decision is made in favor of the risk of Chargebacks within each group.These are recommendations only, <br /> Cardholder and/or Card Issuer,and the Chargeback is upheld,you will be and do not guarantee that you will be able to prevent Chargebacks. <br /> responsible for all such fees and any other applicable fees and penalties 1. Authorization Issues: Proper Authorization procedures were not <br /> imposed by Visa,as they may change from time to time.Such fees and followed and valid Authorization was not obtained. <br /> penalties will be debited from your Settlement Account or settlement The following scenarios could cause an Authorization Related <br /> funds,in addition to the Chargeback. Chargeback to occur: <br /> For MasterCard Chargebacks: If we reverse the Chargeback and represent . Authorization not obtained. <br /> the transaction to the Card Issuer,at its sole discretion,may elect to <br /> resubmit the Chargeback.In such event,at the discretion of Processor,we • Authorization was declined. <br /> will debit your Settlement Account or settlement funds for the Chargeback. • Transaction processed with an expired card and Authorization was <br /> However,if you feel strongly that it is an invalid Chargeback,we may,on not obtained. <br /> your behalf and at your request,submit the matter for arbitration before . Transaction was processed with an invalid account number and <br /> MasterCard.MasterCard currently charges a$150 filing fee and a$250 Authorization was not obtained. <br /> review fee.If a decision is made in favor of the Cardholder and/or Card <br /> Issuer,and the Chargeback is upheld,you will be responsible for all such • Card Recovery Bulletin(CRB)or Exception File was not checked <br /> fees and any other penalties imposed by MasterCard,as they may change (transactions below floor limit). <br /> from time to time.Such fees and penalties will be debited from your To reduce your risk of receiving an Authorization Related <br /> Settlement Account or settlement funds,in addition to the Chargeback. Chargeback: <br /> For Discover Chargebacks: If Discover rejects our representment request • Obtain valid Authorization on the day of the transaction. <br /> and you feel strongly that the Chargeback is invalid,we may,at the • Card PresentTransactions-Authorization must be obtained on the <br /> discretion of Processor and on your behalf and at your request,submit transaction date for the amount settled. <br /> the matter for dispute arbitration before Discover.Discover charges fees <br /> for representment requests and an arbitration fee as published in their • Card Not PresentTransactions-Authorization must be obtained on the <br /> fee schedule. transaction date for the amount settled.However,if inerchandise is <br /> being shipped,Authorization must be obtained within seven calendar <br /> If the Chargeback is not disputed within the applicable time limits set forth days of the transaction ship date. <br /> by MasterCard,Visa,and Discover rules and regulations,reversal rights are . If a declined response is received request another form of payment <br /> forfeited.Our only alternative,for Visa and MasterCard non-fraud from the Cardholder. <br /> Chargeback reason codes,is to attempt a"good faith collection"from the <br /> Card Issuer on your behalf.This process can take up to six(6)months and • If a Referral response is received follow proper voice procedures to <br /> must meet the Card Issuer's criteria(e.g.,at or above a set dollar amount. obtain a valid Authorization and obtain an imprint of the card. <br /> Good faith collection attempts are not a guarantee that any funds will be • "Pick-up"response indicates that the Issuer is requesting for the card to <br /> collected on your behalf.Card Issuers normally charge good faith collection be retained and returned back to them.The Credit Card should not be <br /> fees,which are deducted from the transaction amount if accepted in accepted for payment.Additionally,you can choose to retain the <br /> addition to any processing fees that are charged by us. Credit Card and return it to the Acquirer for a reward. <br /> Note: Discover does not offer good faith collection for Acquirers. • Merchants should not exceed any predetermined thresholds for <br /> MasterCard and Visa Association Rules require that a merchant make a specific terminal types as specified by each Payment Card Company. <br /> good faith attempt and be willing and able to resolve any disputes 2. Cancellations and Returns: Credit was not processed properly or the <br /> directly with the Cardholder.Discover rules and regulations,however, Cardholder has cancelled and/or returned items. <br /> prohibit you and/or us from contacting the Cardholder directly regarding The following scenarios could cause a Cancellation and Return <br /> dispute(s)or any other matter,except as required for acceptance of Related Chargeback to occur: <br /> Discover transactions,and require you and/or us to submit any responses <br /> to dispute notices directly to Discover. • Cardholder received damaged or defective merchandise. <br /> Due to Association Rules,you may not re-bill a Cardholder after a Charge- • Cardholder continued to be billed for cancelled recurring transaction. <br /> back is received for that transaction,even with Cardholder authorization. • Credit transaction was not processed. <br /> WFB1301 7 3 <br />