HOT CARD/ PICKUP CARD / LOST CARD / SPECIAL PICK UP: The CC was reported as Lost / stolen and is now blocked.
KYC is an acronym that stands for “Know Your Client”. It is a collection of documents that show who the client really is, where he lives and what cards he is using.
KYC documents include three major items:
It is very important to collect these documents in high quality, so they are easily readable.
Unlike transactions made in the “real world”, where the merchant sees the client and physically holds his card, in the virtual world the merchant has no idea who the client is. We need to have some idea about who the client is, some proof that the card he is using to process does belong to him to protect ourselves as best we can from fraud.
KYC needs to be collected prior to the client actually using the funds deposited for trading. This will give you the option to see how communicative the client is, how forthcoming he is, and in case you have doubt – you can refund him and avoid future chargebacks.
A retrieval notification is an inquiry initiated by a cardholder directly to their Issuing Bank. This could be the first step in the chargeback process, or the cardholder is questioning the transaction and/or requesting more information. Issuing banks may also initiate a retrieval request for investigation purposes. At this point a chargeback has not been initiated, nor is there any financial impact (yet).
A chargeback is a type of return that occurs when a cardholder asks its card issuer to dispute a transaction from their card statement. The card issuer will ask the cardholder to provide an explanation about why they are disputing the charge, and will inform the acquirer of the chargeback reason.
Chargebacks are being counted on your account and are a measure for fraud in the account. Also there is a fee for receiving a CB.
Whenever Algocharge receives a retrieval or CB notification, we upload it to our system, and automatically send you an email about it. Please do not overlook these emails as they need to be handled ASAP if you want to have a chance to fight the CB.
When you receive a notification, first note if it’s a retrieval or a CB notification, as you need to handle them differently.
In order for you to send a proper dispute you need to first know what the Chargeback reason is. Then you need to send documents that disprove it. KYC alone is not enough proof, as usually is doesn’t answer the CB reason.
Your account manager have sent you the dispute form when you opened the account. If you don’t have it – please contact your account manager to get it.
Once you have all the documents please fill out the dispute form, attach all relevant documents and send to email@example.com.
Usually once the acquirer receives your dispute they will issue a reversal.
The timeframe for chargebacks depends on the chargeback reason and can be between 45 to 540 days.
To read more about it please see:
MasterCard Chargeback Guide (http://www.mastercard.com/us/merchant/pdf/TB_CB_Manual.pdf)
Visa Chargeback Management Guidelines (http://usa.visa.com/download/merchants/chargeback-management-guidelines-for-visa-merchants.pdf)
A reversal is just what it sounds – a reversal of funds.
Once the issuer receives your dispute they will reverse the CB and give you the funds back.
Please note that at this point they have not yet checked you documents for their validity to the CB.
In our system a reversal will be seen as a new transaction with a description of “manual reversal”.
Once you’ve submitted a dispute to the acquirer they will usually issue an immediate reversal. Upon checking the documents, if they are found incomplete, irrelevant or inadequate, a pre-arbitration process will be issued. This is basically a second chargeback. This new chargeback will also be counted for the account.
If you believe your case is justified, adequate and strong, you may choose to fight the pre-arbitration in an arbitration process. This will require you to send new, better documents to prove your case. If you lose the arbitration process, you will be charged with an arbitration fee of 560 EUR per transactions.
Our risk department is constantly working to check the accounts and protect them from fraud. When we come across a risk issue we will inform you of it. These email notifications are the risk alerts. In most cases you are asked to check your client and advise your conclusions. In some you are asked to provide high quality, full KYC of your client, and in some we will ask you to refund some transactions.
Please note that these alerts are very important, and ignoring them might cause us to block certain clients in the system or refund transaction on your behalf.
We would highly appreciate it if you share your conclusions with us, and keep us informed of any risk issue you come across in your account as well.
We aim to keep you in full control of any process. However, we have a mutual goal to keep the accounts clean of fraud as best we can. Therefore, in cases we don’t get your response within the allotted timeframe, we must take action to prevent fraud and chargebacks in the accounts. We will of course notify you on any action taken.
We have two types of accounts in our system: Aggregated accounts and direct accounts. Obviously, there are harsher limits on the aggregated account. These limits are mostly dictated to us by the acquirers. To ease the limitations in your account please contact your account manager and ask about a direct account.
As a veteran company in this business we accumulated a vast knowledge over the years. This knowledge helps us identify high-risk markets, and we block those on all accounts.
We can also block a certain country per your request.