ELO chargebacks

This topic explains the ELO chargeback process and provides you with guidelines to dispute a chargeback.

Overview

The ELO chargeback flow consists of the following steps:

  1. Request For Information 
    Merchant upload is possible.
  2. First chargeback 
    Merchant upload is possible.
  3. Pre-arbitration (chargeback)
  4. Adyen review of Pre-arbitration
  5. Arbitration case filing

Request For Information (RFI)

A Request For Information (RFI) is initiated when the cardholder does not recognize/does not agree to a charge and requests more information from their bank. It can also be exercised as a fraud analysis request where the real cardholder does not acknowledge the transaction.

At this point, funds are not yet deducted from your account.

ELO transaction receipt RFI reasons

Code

Message

01

Request for copy related to the transaction

03

Cardholder request for copy related to the transaction due to dispute

04

Fraud analysis request

05

Good faith investigation.

Recommendations

04 code Fraud analysis request: Block the delivery of the goods, if possible, and block the shopper from performing any future payments for fraudulent cases.

Other codes: Upload information that may help the cardholder to recognize the charge or that can support the merchants position that the transaction is valid. Upload information within 18 days.

For physical goods

  • Order confirmation/copy invoice.
  • Proof that goods are delivered (DHL/UPS signed proof of delivery).

For digital goods

  • Order confirmation/copy invoice.
  • Proof that services are downloaded/used (date and time of download, IP address, and email address that was used for the download).

First chargeback process

  1. The issuing bank initiates the first chargeback on behalf of the cardholder by sending a chargeback notification to Adyen stating the dispute reason.
  2. We assign it to you for review in the Disputes tab of the Customer Area, or inform you in a notification
  3. A NotificationOfChargeback journal is created. The Chargeback journal is only booked after the Merchant receives the actual debit from the disputed amount.
  4. You review the chargeback and decide to accept or dispute it:
    • Accept the dispute it in the Adyen Customer Area. The case will then be closed for defense.
    • Defend the dispute by uploading relevant defense documents (see Reason codes and guidelines) to the Customer Area or Adyen's Dispute API within 18 days.

If you decide to defend the dispute:

  1. Address the reason code and upload information that can support your position. Uploading an overview of the order details is not enough. 

    There is no opportunity later in the process to provide information (unless this information was not available before).

  2. After you have submitted the defense material, it is irreversible and is sent (through the credit card network) back to the issuing bank.
  3. Depending on the chargebacks reason code, Adyen will book a Chargeback reversed journal.

Pre-arbitration (chargeback)

  1. The cardholder can challenge your evidence and their bank will send a pre-arbitration (second chargeback) to Adyen within 30 days of the merchant upload date (Information Supplied date).

    Pre-arbitration chargebacks are initiated by the bank only.

  2. In most cases, the cardholder insists that the chargeback is valid (after reviewing merchants evidence) and requests their bank to continue the dispute.
  3. The Adyen Chargeback Team reviews the pre-arbitration chargebacks and responds by either accepting or declining them:
    • If Adyen accepts the case, the merchant will be debited for the disputed amount and a SecondChargeback journal will be booked.
    • If the Pre-arbitration is declined, the bank can pursue it to the final stage of the dispute cycle by escalating it with ELO (Arbitration case filing). 

Arbitration case filing

At Arbitration case filing stage, the ELO chargeback committee will:

  • Review the chargeback and provide a ruling.
  • Review the cardholder’s claim and the merchant's documents.
  • Compare them with the ELO regulations.

The party that did not meet the dispute conditions and requirements will lose the chargeback and will be held liable for a filing fee of USD 500 (the fee is charged on top of the dispute amount). 

Adyen is not responsible if the card scheme rules in favor of the cardholder.

Reason codes and guidelines

Reason code

Reason

Description

30

Goods or Services not provided 

You should demonstrate that services were rendered or that merchandise was delivered. 

Provide the following:

  • For services: Proof that the cardholder utilised the services (i.e. invoice, log‐in information, post-sale service, i.e. communication with the Cardholder after the payment, etc).
  • For merchandise: The invoice that shows cardholder's shipping address and a signed proof of delivery to that shipping address (i.e. tracking number and a screen shot or a print out of shipper's proof of delivery).

41

Cancelled recurring transaction

You should demonstrate that the cardholder did not cancel or canceled after the transaction date; that the you sent a notice of the upcoming charge at least 10 days prior to transaction without a response from the cardholder. Proof that the cardholder used services after the alleged cancellation date or that merchandise was shipped before the cancellation date. Proof that this is instalment billing and not a recurring charge. 

Provide the following:

  • For services: Proof that the cardholder is still interested in using the service; for example: You may have received email(s) or any other communication about the service. It is a good practice for many merchants to engage their customers or email them prior to charging a membership fee, recurring payment, or subscription. As this would allow the customer to cancel the payment before being charged and avoid a possible dispute.
  • For merchandise: Proof that merchandise was shipped prior to cancellation date and no returns have been received (i.e. shipping information/proof of delivery). Proof that notice of upcoming billing was sent to Cardholder at least 10 days prior to transaction (i.e. e‐mail notifications, etc).

Adyen recommends accepting most CB RC 4841 as it is very difficult to prove the Cardholder did not cancel.

53

Not as described

You should demonstrate that the service or merchandise was as described or that any defects were fixed and/or defected items were replaced. 

Provide the following:

  • For services: Proof that services promised were those that were received by the cardholder (i.e. invoice, terms & conditions, log‐in information, etc).
  • For merchandise: Proof that the cardholder was sent a replacement item (i.e. shipping information, terms & conditions, return information, and invoice, etc). Proof that shipped items were as described, and were delivered to the cardholder's shipping address (i.e. invoice, terms & conditions, proof of delivery, etc).

57

Multiple fraudulent transactions

You should demonstrate that this is a valid transaction by providing supporting documents.

Provide all available documents pertaining to the cardholder and what was purchased (i.e. invoices, description of service, terms & conditions, log in information, account info, etc) 

60

Documentation was illegible

You should demonstrate and sent the right documentation for this reason code.

62

Liability shift

For this chargeback reason code, please contact the Adyen disputes team.

71

Authorization Denied

For this reason code you should demonstrate that the issuer authorized the transaction. By simply sending this  Text: AUTORIZATION CODE X.....X

73

Expired Account/Card

For this reason code you should demonstrate that the Account is not expired . By simply sending this  Text:  X...X (texto livre)

74

Late Presentment

The transaction receipt or other document to prove that the transaction was settled within the required timeframe for Debit is 7 days and credit no later than 30 days, T&E no more than 90 days.   

75

Cardholder can’t remember 

You should demonstrate that this is a valid transaction by providing supporting documents.

Provide all available documents pertaining to the cardholder and what was purchased (i.e. invoices, description of service, terms & conditions, log in information, account info, etc) 

77

Account number doesn’t exist

For this reason code you should demonstrate that the Account is valid and the issuer authorized the transaction. By simply sending this  Text: Authorization code X...X (texto livre)

80

Incorrect Amount 

Copy transaction receipt or other proof that the transaction amount was correct.

81

Other Fraud-Card Present Environment 

For this chargeback reason code, please contact the Adyen disputes team.

82

Duplicate Processing

Proof that the merchant processed two separate transactions for different orders (duplicate processing). Compelling evidence can be copy invoices of different orders.

83

Other Fraud-Card Absent Environment 

The merchant should demonstrate that service or merchandise was a legitimate purchase by the cardholder.

Emails or photographs, to prove a link between the shopper and the Cardholder, or to prove that the Cardholder is in possession of the merchandise and/or is using the merchandise or services.

For an E-commerce Transaction in which the merchandise is collected from the merchant location, any of the following:

  1. Cardholder signature on the pick-up form.
  2. Copy of identification presented by the Cardholder.
  3. Details of identification presented by the Cardholder.

For an E-commerce Transaction in which the merchandise is delivered, documentation (proof of delivery) that the item was delivered to the same physical address for which the merchant received an AVS match of Y or M. A signature is not required as evidence of delivery.

For digital goods downloaded from a merchant's website or application, description of the services successfully downloaded, the date and time such services were downloaded, and 2 or more of the following:

  1. Shoppers IP address and the device geographical location at the date and time of the Transaction.
  2. Device ID number and name of device (if available).
  3. Purchaser's name and email address linked to the customer profile held by the merchant.
  4. Evidence that the profile set up by the purchaser on the merchant's website or application was accessed by the purchaser and has been successfully verified by the merchant before the Transaction Date.
  5. Proof that the merchant's website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date.
  6. Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction that was not disputed.

For a Transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery.

For a Mail/Phone Order Transaction, a signed order form.

For a passenger transport Transaction, evidence that the services were provided and any of the following:

  1. Proof that the ticket was received at the Cardholder’s billing address.
  2. Evidence that the ticket or boarding pass was scanned at the gate.
  3. Details of frequent flyer miles relating to the disputed Transaction that were earned or redeemed, including address and telephone number, that establish a link to the cardholder.
  4. Evidence of any of the following additional Transactions related to that original Transaction: purchase of seat upgrades, payment for extra baggage, or purchases made on board the passenger transport.

For Transactions involving a Europe Member, for an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and matches the name provided on the purchased itinerary.

For a T&E Transaction, evidence that the services were provided and either:

  1. Details of loyalty program rewards earned and/or redeemed including address and telephone number that establish a link to the cardholder.
  2. Evidence that an additional Transaction or Transactions related to the original Transaction, such as the purchase of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed.

For an E-commerce Transaction, evidence that the Transaction used an IP address, email address, physical address, and telephone number that had been used in a previous, undisputed transaction.

Evidence that the Transaction was completed by a member of the cardholder's household or family.

Evidence of one or more non-disputed payments for the same merchandise or service in the past.

For a Recurring Transaction, all of the following:

  1. Evidence of a legally binding contract held between the merchant and the cardholder.
  2. Proof the Cardholder is using the merchandise or services.
  3. Evidence of a previous Transaction that was not disputed.

In the Europe Region, evidence that the initial Transaction to set up a wallet was completed using Verified by Visa but any subsequent Transaction from the wallet that was not completed using Verified by Visa contained all wallet-related Transaction data.

For Transactions involving a Europe Member, for an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and matches the name provided on the purchased itinerary.

For a T&E Transaction, evidence that the services were provided and either:

  1. Details of loyalty program rewards earned and/or redeemed including address and telephone number that establish a link to the cardholder.
  2. Evidence that an additional Transaction or Transactions related to the original Transaction, such as the purchase of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed.

Evidence that the person who signed for the merchandise was authorized to sign for the Cardholder or is known by the Cardholder.

In the Europe Region, evidence that the Cardholder has been compensated for the value of the merchandise or services through another method.

85

Credit not processed

  • The cardholder no longer disputes the transaction.
  • The merchant already processed a credit to the cardholder's account.

86

Paid by other means

  • Documents that the merchant did not receive payment by other means.