Chargebacks can be classified in three (3) fundamental categories, each demanding a unique response and approach. Adopting the below processes, broken down by each scenario, will assist you in Chargeback/Dispute circumvention.

CHARGEBACKS OR DISPUTES DUE TO MERCHANT ERROR Mistakes happen from time to time but as a merchant, the occasional mistakes, though unavoidable, can often result in a chargeback. Eliminating Merchant Error chargebacks or disputes can be successful by implementing some of these best practices: • Accurate description of Products/Services: Appropriately lay out what cardholders should reasonably expect from the product or services you offer; provide detailed descriptions and offer a clear picture of the result, once product is received, or where services are fulfilled.

• Correct Billing Descriptors: Ensuring the descriptor which appears on a cardholder’s payment card statements should accurately reflect your business name, URL, and/or phone number.

• Clear Return Policies and Terms of Service: Always ensure cardholders understand the policies and terms of use of your product and use of website. Use of clear, concise language and terminology to define the ground rules will go a long way to minimize any disconnect between you and the cardholder.

• Provide Contact Information: Cardholders will not be patient enough to chase you down to locate your email, address, or phone number. Ensuring contact information is clearly visible on a website, on your invoice, and on your billing descriptor will offer a proactive approach to minimize the chances of a chargeback or dispute.

• Do Not Accept Expired Cards: If purchases are attempted on an expired payment card you may be exposed to a possible authorization error chargeback; should an expired card be presented, simply ask the cardholder to use another non-expired payment card or ask for another method of payment.

CHARGEBACKS OR DISPUTES DUE TO FRAUD Although genuine criminal fraud attacks are the cause are far and few between, it’s still important to be proactive. Preventative action to combat fraud risk is imperative to ensure there is minimal business interruption for you, for example: • 3D Secure: An opt-in service that works similar to an online PIN code. At checkout, users will be redirected to a separate page to enter a unique code before proceeding.

• Geolocation: Using geolocation allows you to see where in the world users are located. If there’s a mismatch between IP address and shipping/billing information, it may suggest a possible fraud sale attempt.

• Geofencing: Using software technology to create a virtual geographic boundary, which enables the software to trigger a (transaction decline or warning flag) response when the cardholder’s information is outside of a particular area.

• Address Verification Service (AVS): allows you to match the billing addresses provided by cardholders with those on-file at the issuing bank. Mismatched billing information suggests fraudulent activity.

• Card Verification Value (CVV) Verification: The three (3) to four (4) digit number is printed on the to help verify if the cardholder is truly in possession of the card. On VISA and MasterCard, the three (3) digit CVV is located on the back of the card; on AMEX, a four (4) digit CVV is found on the front, above the card number.

CHARGEBACKS OR DISPUTES DUE TO FRIENDLY FRAUD Friendly fraud is a post-transactional concern as it only gets ‘classified’ as fraud after the transaction is complete and the cardholder files a dispute. In most cases, the product is already with, or the services have already been fulfilled to the cardholder. The primary response to combat friendly fraud is to ensure you always hold compelling evidence to prove the transaction was legitimate and should be upheld by the issuing bank. This can include: • Purchase Order Forms; • Tracking numbers; • Credit Card Authorization Forms; • Maintaining Communications logs between you, your employees, and the cardholder; • Proof the cardholder possesses the product (photographs, social media posts, etc.); • Delivery confirmation for items shipped to an address, with matching AVS; Please contact us at 1 800 848 2974, or your dedicated PSP client representative as soon as you’re made aware of a chargeback or dispute, or if you have concerns on a potential sale so we may better assist you.

Knowing the best practices to contest a chargeback or dispute is a huge advantage when it comes to protecting your business from financial risk, or other means of operational harm. When contesting a chargeback or dispute always remember the more compelling evidence you can provide the better your chances are of proving the sale was legitimate. To contest a Chargeback or Dispute the following can be provided: • Documentation to prove the cardholder is in possession of, or using, the goods sold; • Documentation to prove you fulfilled services to the cardholder, as agreed; • Proof of a signed delivery form as proof goods were picked up at your business location; • Proof of delivery to the cardholder’s address; and/or, • Proof that the transaction was completed by the cardholder whose name is indicated on the payment card

Please contact us at 1 800 848 2974, or your dedicated PSP client representative as soon as you’re made aware of a chargeback or dispute, or if you have concerns on a potential sale so we may better assist you.

There is a Merchant Discount Rate (MDR), which is based on your average monthly VISA, MasterCard dollar volumes and the dollar size of your average transaction.

Other fees such as set-up, per transaction and monthly fees are dependent on what type of Merchant Account you require and how the transactions will be transmitted. To get specific fees for your particular application, please contact PSP Services directly.