At SumUp we do everything in our power to minimize fraud, and in turn, minimize the chances of chargebacks. In case you still receive a retrieval request, chargeback or a fraud report, this article will help you understand the process.
In this article:
What is a retrieval request?
A retrieval request occurs when your customer or your customer’s bank requests more information about a transaction that appears on the customer’s card statement. Often this can occur when a customer doesn’t recognize a charge on their card and contacts their bank.
Are any funds deducted from my bank account as a result of a retrieval request
No, a retrieval request is just a request for information. You will not be charged for the amount of the transaction belonging to the retrieval request. However, failure to provide SumUp with the requested details and documents on the transaction may result in a chargeback.
What should I do if I receive a retrieval request?
You will be notified of a retrieval request through the email registered to your SumUp and you’ll be asked to provide SumUp with all relevant information and documents that will need to be forwarded to the customer’s bank. You can find the requirements for the requested documents here. If you can, we recommend contacting your customer to solve the issue and ask them to call their bank to stop any potential chargebacks.
What is a chargeback?
When a card transaction is disputed (either at the request of the cardholder or by the cardholder’s bank), you may receive a chargeback. If a chargeback occurs, you will be charged for the amount of the transaction.
At SumUp, we actively support you to dispute the chargeback and to recover the charged amount from your customer’s bank.
What are the reasons for a chargeback?
Some of the reason for chargebacks can include:
- Merchandise is damaged in transit and arrives broken.
- A cardholder returns the merchandise but has not received a refund.
- A cardholder disputes a transaction as a fraudulent use of their card.
- A cardholder doesn’t recognize the charge on their bank statement.
- A cardholder disputes the quality or receipt of merchandise.
- The amount charged was incorrect.
- Processing errors were made during the transaction.
- The merchant did not fulfill a retrieval request.
What happens during a chargeback?
A chargeback happens when a customer contacts their card issuer to dispute a transaction. The chargeback is passed through the applicable payment network to the merchant, and then your SumUp account will be charged once the chargeback is received. A fee of $10.00 will be applied additionally to cover the expenses incurred through the chargeback. Please be aware that this fee will be charged by the payments provider and is not caused by SumUp.
The chargeback includes a “respond by” date. Because the payment networks only allow a limited amount of time to respond to (and dispute) a chargeback, it’s critical that you respond to SumUp’s emails within the requested timeframe. By responding in a timely manner, we’re able to actively support you to dispute the chargeback and to recover the charged amount from the cardholder’s bank.
What should I do if I receive a chargeback?
If you receive a chargeback, read our chargeback email carefully and see if you are able to provide the requested information. If you have any questions, you can reach our Support Team Monday - Friday between 9 am - 7 pm EST at 1-888-250-2164.
How do I manage chargebacks?
If a customer contacts you with a complaint about a purchase, work with that customer to resolve the dispute. If you can't resolve the dispute to your mutual satisfaction, instruct the buyer how to return the merchandise.
Once the merchandise has been returned to you, issue a refund to the same card used to make the purchase. Don't accept numbers and information that doesn’t match the original card, and use common sense to assess the risk. Make sure to keep SumUp informed, as, based on our experience, our team might be able to help you assess or resolve the issue.
Additionally, a simple way to avoid chargebacks with the reason “Transaction not recognized”, is to make sure the business name registered with us is easily recognizable by your customers. In situations when a product is shipped to customers, to ensure the merchandise arrives safely, use a form of shipping that provides proof of delivery. For higher ticket items, require a signature for delivery.
You can find more tips on how to prevent chargebacks here.
What is a fraud report?
A fraud report occurs when your customer’s bank notifies us that the card used for the payment has been reported by the customer as fraudulently used, lost, stolen or counterfeit.
At this point, you won’t be charged, but it is highly likely that a chargeback will follow with fraud reasons.
What should I do if I receive a fraud report?
You will be notified of the fraud report by SumUp, and our team will provide you with further instructions. If you can, we recommend contacting your customer to solve the issue and ask them to call their bank to stop any potential chargebacks.