How to minimize payment disruption after a payment migration
Any time you change processors, there is a risk that some recurring credit card transactions will fail the next time they run. This should not occur with the majority of your recurring transactions, but could occur with a small percentage of them. The reason for this is that the card may have expired during the migration process and the updated card information did not migrate to the new processor. It is also possible that your customer’s bank does not like to see the same payment processing through a different system that it does not expect to see.
To mitigate this risk we recommend that you communicate with your customers that you’ve updated how you process payments and that there’s a small possibility that their next payment could fail.
We additionally recommend that you include a call to action in the email to fill out a zero dollar order form that will update their card information without incurring a cost to them.
Step 1: Create a zero dollar order form or checkout form
Keap Ultimate:
- Create an order form with a zero dollar product.
- Once saved, copy the Order Form link for the Email Broadcast.
Keap Pro/Max:
- Create a checkout form with a zero dollar product.
- Once saved, copy the Checkout Form link for the Email Broadcast.
Step 2: Create an email broadcast to send to your customers
We’ve included some suggested copy below. Link to the order form or checkout form in the email as the call to action. You can adapt this copy for your business needs. Also, be sure to update the copy in brackets before sending out the broadcast.
Keap Ultimate
Keap Pro/Max
| Subject Line | Our payment software is upgrading |
| Body |
Hi <<first name>>, We’re writing to let you know that the software we use to process payments is upgrading their payment service. As we make this transition you most likely will not need to do anything. You will see a slightly different name for our transactions in your bank statements. Rather than WP*[YourBusinessName] you will see RF*[YourBusinessName]. However, it’s possible that your bank may have an issue with a change like this. You might be required to re-enter your card information in the event that your next payment doesn’t process. You can take action to ensure this problem doesn’t happen in the first place. I’ve linked to a [order form/checkout form] with a zero dollar product. You can enter your card information on that form and submit it. It will cost you nothing and ensures that future transactions will not fail. [Button or link: “Update your card information”] I appreciate your business and apologize for any inconvenience this may cause. Thank you, [Signature] |
How to minimize chargebacks
What is a chargeback?
A chargeback occurs when a cardholder contacts their issuing bank (e.g. Capital One, American Express, Chase) and disputes a purchase made on their credit card. Reason codes may very but often include the following:
- Goods/services are not delivered
- Products received are not as advertised
- Merchant assumed to not be following its refund policy
- Charged by mistake
- Fraudulent transactions
Whatever the case may be, the customer believes they were wrongfully charged and are requesting their money back from the bank that issued their credit card. Chargebacks can either be issued by the merchant or the issuing bank within 180 days after the purchase is made. If issued by the merchant, the chargeback initiates a request to the merchant's acquiring bank (the "receiving" bank during the original transaction) to pull funds from the merchant's bank account and send to the customer's issuing bank account. If initiated by the issuing bank, the issuing bank often refunds the cardholder and submits a claim to the merchant to claw back the funds. In either scenario, the merchant's acquiring bank will generally charge a chargeback fee for each transaction.
How to prevent chargebacks?
Chargebacks are never ideal for a merchant. They force refunds, reduce brand reputation, and ultimately cost merchants money. While never completely avoidable, chargeback risk can be mitigated by all merchants. It's easy to see that the overarching reason people file chargebacks is when they believe they were wrongfully charged for a transaction. To prevent chargebacks, merchants can take a few steps to lower their risk:
- Have a clear refund policy - Customers sometimes get confused in the terms and conditions. Having a crystal clear refund policy allows them to distinguish what can be returned and what can't.
- Include good contact information on your website - If a customer is able to settle the issue with you, they are much less likely to charge back a transaction. In fact, issuing banks always request that customers attempt to settle disputes with merchants before filing a chargeback. If there is a clear phone number and email address for customer support, it is likely you can handle all disputes before they escalate into chargebacks.
- Be detailed in your product descriptions - Represent products and services accurately by offering detailed descriptions and clear pictures.
- Avoid manually keying credit card information - Everyone makes mistakes and punching in the wrong information could result in a chargeback.
- Have clear merchant descriptors - If customers don't recognize your business on their credit card statement, you increase the likelihood of them filing a dispute.
Chargeback dispute documentation
Successfully disputing a chargeback hinges on the ability to present compelling evidence. Below, we've listed the vital types of documentation you should assemble to bolster your case against unwarranted chargebacks. Not all chargebacks are the same and not all the documents listed will apply to every chargeback. Review the reason code to determine what may work best.
- Order Confirmation and Receipt: Start with the original order confirmation and receipt. These documents offer proof that the customer authorized the transaction, which is crucial when countering claims of unauthorized purchases.
- Proof of Delivery: For physical goods, proof of delivery is invaluable. It establishes that the customer received the items they ordered, thus challenging any claims suggesting non-receipt.
- Communication History: Retain any correspondence you had with the customer, especially if they acknowledged receipt or expressed satisfaction. These interactions can debunk claims of dissatisfaction.
- Tracking Information: Provide tracking numbers and shipping details. This substantiates that the order was fulfilled and dispatched to the correct address, dispelling doubts about order processing.
- Product Descriptions and Images: Include detailed product descriptions and images. These illustrate that the delivered items match what was advertised, offering a strong defense against claims of misrepresented goods.
- Terms of Service and Return Policy: Attach your terms of service and return policy documents. They confirm that the customer was aware of your policies before finalizing the transaction.
- IP Address and Geolocation: Where applicable, include evidence of the customer's IP address and geolocation during the transaction. This helps verify their identity and location.
- Refund and Exchange History: If you attempted to resolve the issue through refunds or exchanges, provide documentation of these actions. This demonstrates your commitment to customer satisfaction.
Chargeback dispute guidance
Chargebacks can be frustrating and financially challenging for merchants. However, it's essential to remember that merchants have the right to dispute chargebacks that they believe are unjustified or erroneous. This guide will walk you through the process of disputing a chargeback and provide you with steps to increase your chances of a successful resolution.
Step 1: Gather Documentation
Collect all relevant documents related to the disputed transaction. This may include the original order receipt, proof of delivery, communication with the customer, tracking information, and any other evidence that supports your case.
Step 2: Understand Chargeback Reason Codes
Each chargeback comes with a reason code, which explains why the customer initiated the chargeback. Familiarize yourself with these codes, as they will help you build a solid case for your dispute. Common reason codes include "Item Not Received," "Unauthorized Transaction," and "Item Not as Described."
Step 3: Review the Chargeback Details
Carefully examine the chargeback notification, as it will provide information about the transaction, the customer's claim, and the requested amount. Cross-reference this information with your records to ensure accuracy.
Step 4: Submit your chargeback dispute
Provide the collected documentation and supporting information to Keap prior to the chargeback deadline.
Step 5: Monitor Communication
Stay vigilant for any updates regarding the chargeback. We may request additional information or clarification. Respond promptly to any requests to avoid delays in the resolution process.
Chargeback Reason Codes
| Visa Chargeback Reason Codes | |
| Chargeback Code
|
Description
|
| Fraud
|
|
| 10.1
|
EMV Liability Shift Counterfeit Fraud
|
| 10.2
|
EMV Liability Shift Non-Counterfeit Fraud
|
| 10.3
|
Other Fraud — Card Present Environment
|
| 10.4
|
Other Fraud — Card Absent Environment
|
| 10.5 | Visa Fraud Monitoring Program
|
| Authorization
|
|
| 11.1 | Card Recovery Bulletin
|
| 11.2 | Declined Authorization
|
| 11.3 | No Authorization
|
| Processing Errors
|
|
| 12.1 | Late Presentment
|
| 12.2 | Incorrect Transaction Code
|
| 12.3 | Incorrect Currency
|
| 12.4 | Incorrect Account Number
|
| 12.5 | Incorrect Amount
|
| 12.6.1 | Duplicate Processing
|
| 12.6.2 | Paid by Other Means
|
| 12.7 | Invalid Data
|
| Consumer Disputes
|
|
| 13.1 | Merchandise/Services Not Received
|
| 13.2 | Canceled Recurring
|
| 13.3 | Not as Described or Defective Merchandise/Services
|
| 13.4 | Counterfeit Merchandise
|
| 13.5 | Misrepresentation
|
| 13.6 | Credit Not Processed
|
| 13.7 | Canceled Merchandise/Services
|
| 13.8 | Original Credit Transaction Not Accepted
|
| 13.9 | Non-Receipt of Cash or Load Transaction Value
|
| Mastercard Chargeback Reason Codes | |
| Chargeback Code
|
Description
|
| 4808 | Warning Bulletin File
|
| 4808 | Authorization-Related Chargeback
|
| 4808 | Account Number Not on File
|
| 4808 | Required Authorization Not Obtained
|
| 4808 | Expired Chargeback Protection Period
|
| 4808 | Multiple Authorization Requests
|
| 4808 | Cardholder-Activated Terminal (CAT) 3 Device
|
| Point of Interaction Error
|
|
| 4834 | Point of Interaction Error
|
| 4834 | Transaction Amount Differs
|
| 4834 | Late Presentment
|
| 4834 | Point-of-Interaction Currency Conversion
|
| 4834 | Duplication/Paid by Other Means
|
| 4834 | ATM Disputes
|
| 4834 | Loss, Theft, or Damages
|
| Fraud
|
|
| 4837
|
No Cardholder Authorization
|
| 4849
|
Questionable Merchant Activity
|
| 4870
|
EMV Chip Liability Shift
|
| 4871
|
EMV Chip/PIN Liability Shift
|
| Cardholder Disputes
|
|
| 4853
|
Cardholder Dispute of a Recurring Transaction
|
| 4853
|
Goods or Services Not Provided
|
| 4853
|
No-Show Hotel Charge
|
| 4853
|
Addendum Dispute
|
| 4853
|
Credit Not Processed
|
| 4853
|
Goods/Services not as Described or Defective
|
| 4853
|
Digital Goods $25 or less
|
| 4853
|
Counterfeit Goods
|
| 4853
|
Transaction Did Not Complete
|
| 4853
|
Credit Posted as a Purchase
|
| 4854
|
Cardholder Dispute Not Classified Elsewhere
|
| Other |
|
| 4850
|
Installment Billing Dispute (Participating Countries Only)
|
| 4999
|
Domestic Chargeback Dispute (Europe Region Only)
|
| American Express Chargeback Reason Codes | |
| Chargeback Code
|
Description
|
| Authorization
|
|
| A01 | Charge Amount Exceeds Authorization Amount
|
| A02 | No Valid Authorization
|
| A08 | Authorization Approval Expired
|
| Fraud |
|
| F10 | Missing Imprint
|
| F14 | Missing Signature
|
| F24 | No Card Member Authorization
|
| F29 | Card Not Present
|
| F30 | EMV Counterfeit
|
| F31 | EMV Lost/Stolen/Non-Received
|
| Card Member Dispute
|
|
| C02
|
Credit Not Processed
|
| C04 | Goods/Services Returned or Refused
|
| C05 | Goods/Services Canceled
|
| C08 | Goods/Services Not Received
|
| C14 | Paid by Other Means
|
| C18 | "No Show" or CARDeposit Canceled
|
| C28 | Canceled Recurring Billing
|
| C31 | Goods/Services Not as Described
|
| C32 | Goods/Services Damaged or Defective
|
| Processing Error
|
|
| P01 | Unassigned Card Number
|
| P03 | Credit Processed as Charge
|
| P04 | Charge Processed as Credit
|
| P05 | Incorrect Charge Amount
|
| P07 | Late Submission
|
| P08 | Duplicate Charge
|
| P22 | Non-Matching Card Number
|
| P23 | Currency Discrepancy
|
| Inquiry/Miscellaneous
|
|
| R03 | Insufficient Reply
|
| R13 | No Reply
|
| M01 | Chargeback Authorization
|
| M10 | Vehicle Rental - Capital Damages
|
| M49 | Vehicle Rental - Theft or Loss of Use
|
| FR2 | Fraud Full Recourse Program
|
| FR4 | Immediate Chargeback Program
|
| FR6 | Partial Immediate Chargeback Program
|
| Discover Chargeback Reason Codes | |
| Chargeback Code | Description |
| Fraud | |
| UA01 | Fraud – Card Present Transaction |
| UA02 | Fraud – Card Not Present Transaction |
| UA05 | Fraud – Chip Counterfeit Transaction |
| UA06 | Fraud – Chip and PIN Transaction |
| UA10 | Request Transaction Receipt (swiped card transactions) |
| UA11 | Cardholder Claims Fraud (swiped transaction, no signature) |
| Authorization | |
| NA | No Authorization |
| DA | Declined Authorization |
| AT | Authorization Non-Compliance |
| EX | Expired Card |
| Processing Errors | |
| IN | Invalid Card Number |
| LP | Late Presentation |
| Services | |
| 5 | Good Faith Investigation |
| AA | Does Not Recognize |
| AP | Recurring Payments |
| AW | Altered Amount |
| CD | Credit/Debit Posted Incorrectly |
| DP | Duplicate Processing |
| IC | Illegible Sales Data |
| NF | Non-Receipt of Cash from ATM |
| PM | Paid by Other Means |
| RG | Non-Receipt of Goods, Services, or Cash |
| RM | Cardholder Disputes Quality of Goods or Services |
| RN2 | Credit Not Processed |
| Other | |
| DC | Dispute Compliance |
| NC | Not Classified |