Written by Jennifer Bell.
The University Controller’s Office offers merchant services, providing daily support to departments with active merchant accounts. At NC State, Merchant Services and associated merchant accounts refer to the process and administration that allows departments within the university to collect payments via credit card. Each merchant has an account that associates the transaction with the ultimate owner of the payments received through the transaction.
Recently, some concerns have been reported related to refunds issued after charges have been processed. In this article, we will share a few tips and best practices for handling chargebacks for those units and colleges who accept credit card payments through Merchant Services.
What is a chargeback?
A chargeback occurs when funds are reversed from a consumer’s account, line of credit or credit card, back to the merchant.
When should chargebacks be issued?
It’s critical to remember: do not issue a refund after a chargeback has been initiated. Once the issuing bank begins the chargeback process, they receive conditional credit from the payment card network. If the cardholder’s chargeback claim is valid, accept the chargeback. This allows the cardholder to keep the credit issued by the payment card network.
Already issued a refund for a chargeback?
If a refund has already been processed for a chargeback, you’ll need to respond using the credit-issued response option in the Dispute Management tool. Before submitting your response, make sure to gather the following details:
- Date the refund was issued
- Amount of the refund
- Acquirer Reference Number (ARN)—the unique transaction reference generated for every processed sale or refund
For partial credits that haven’t yet been applied to the disputed amount, include the credit details in your response and address any remaining portion of the transaction that hasn’t been refunded.
By following these steps, you can ensure smooth resolution of chargeback disputes while maintaining accurate transaction records.
Still have questions?
For more information on Merchant Services, please visit the University Controller’s Website. If you have any questions, please contact Jennifer Bell at jmbell3@ncsu.edu.