Multiple Fraudulent Transactions

Multiple Fraudulent Transactions Chargebacks

Multiple Fraudulent Transactions Chargebacks

With growth of use of technology, today businesses are collecting the payment of their product or services through card transactions. This method of collecting the payment is one of the easy ways to keep track of the balance of the transactions that a business do in on daily basis.

But, this ease has some points where the merchant can do some errors while collecting the payment. One of the errors is multiple credit card transactions posted by the merchant on single account. This error can be caused by multiple transactions that were performed due to any error be it technical or be it human.

This fault can turn into a transaction dispute case if the merchant does not able to correct the error before applying to the bank for funding. For a chargeback case to get initiated on faulted multiple transactions posted to card holder’s account. The card holder questions the transactions to its bank, by submitting a written application to the bank with agreeing that the card holder was present when first transaction was done. But, claims that the other transactions as fraudulent practices.

This error is basically designated to the transactions that happened in the card-present situation that is the card was physically present during the transactions. The card brand network VISA have assigned reason code 57, but MasterCard have assigned reason code 4840 for this transaction dispute condition. A Merchant can manage the transaction disputes for this reason by performing the listed remedies:

  • One of the foremost ways to avoid such multiple error transactions is to cross check the details and verify each and every transaction before sending them to the bank for funding.
  • If you caught the error after getting funded for the repetitive transactions and 10transferred the amount to the customer’s account, and still you faced the chargeback claim, give the amount transfer details to the bank to prove that merchant have processed back the fault transactions.
  • If the condition is that the card holder was available at the time of those multiple transactions the merchant must provide the following proofs:
  • Sales receipts
  • Shipping invoice of delivery with item details
  • If the multiple transactions were tracked, and the merchant does not processed the amount to the card holder’s account, then merchant should accept the transactions dispute and give the disputed amount to the customer.

The prevention measure that can be taken for this type of error is to have a well designed payment processing system that should analyise and detect if any transaction is duplicated in the data inventory. The other prevention measure a merchant can perform is they should review that the batch of transactions that is being sent for processing and funding is unique, that is it was not been sent earlier.

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