Authorization Representment

The merchant account is represented by the acquiring processing bank during certain credit card processing disputes. At times, a chargeback dispute may be settled behind-the-scenes in what is called an “Authorization Representment.” Here is information on how a chargeback dispute can be automatically resolved.

Many Reasons for Chargeback

A chargeback is a financial transaction that was approved, but later the funds were either not available or the customer changed his mind. Sometimes, no one is really at fault when a chargeback occurs. Much of the chargeback process might be determined behind-the-scenes without direct merchant involvement.

If fraud was involved, then the banks will investigate. The fraud could be at the consumer, merchant or bank level. The credit card banks will notify the merchant of their findings.

When a customer changes his mind on a purchase, he contacts the credit card company. The credit card issuer will investigate and determine whether a chargeback should occur based on its own policies.

Chargeback Process Controlled By Banks

The merchant account has control over the initial presentation of the credit card for the transaction. If the merchant mistypes, intentionally alters or misuses customer financial information, then he could be liable. Customer dissatisfaction with the delivery of goods or services could also lead to chargebacks. The credit card companies will check their records to try to find out where the error or fraud occurred during credit card processing.

On his monthly statement, the merchant will be given a list of his chargebacks. At that point, he can dispute the chargebacks by contacting his acquiring bank within the specified period of time. Merchants are rated based on the number and types of chargebacks they occur; a merchant account might be cancelled if there are too many chargebacks.

Authorization Representment

At times, the chargeback issue was not a problem of the merchant himself. When the merchant’s processing bank resolves a chargeback in the interests of the merchant, it is called an “Authorization Representment.” This could be automatic – without direct merchant involvement.

An acquirer bank has a vested interest in ensuring that the merchant does not have too many chargebacks. The acquirer shares risk and might be fined for too many merchant chargebacks. During credit card processing, the customer has the credit card issuer bank in his corner while the merchant has the acquirer processing bank in his corner.

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.