How to Handle JPMorgan Chase Chargebacks in 2021
Table of Contents
- What Can You Expect with a Chase Dispute?
- What are Chase Bank Chargeback Fees?
- What is Chase Bank Chargeback Policy?
- What is the Chase Bank Chargeback Process?
- Chase Bank Chargeback Portal
- Benefits of Analyzing & Disputing Chargebacks
- Frequently Asked Questions
Like any issuing bank, JPMorgan Chase banks supports chargebacks for their customers. Likewise, if you are a merchant you may find that you're contacted in regards to a Chase chargeback.
Despite all the ways in which the chargeback process is constrained by the rules and regulations handed down by the major card networks, there are still some areas in which acquiring and issuing banks get to set their own policies and requirements. Dealing with chargebacks means interacting with a wide variety of issuers, and it can be a rude awakening when you miss a deadline or submit the wrong information because of these subtle differences.
We hate to see any merchant go into a chargeback fight unprepared, so we’ve prepared this guide to answer the question: what do merchants need to know about handling disputes with Chase Bank?
Chase Bank is one of the largest credit card issuers in the United States, so it’s very likely that a high percentage of your chargebacks will involve them. Remember that while it’s easy to see issuers as the opponents in your ongoing battle with chargebacks, they have every incentive to abide by the card network rules and provide a fair hearing and outcome.
Whether you’re in the middle of a dispute over a Chase Bank transaction or just want to be ready for the next one to come your way, we hope this guide will tell you everything you need to know about navigating their chargeback process.
What Can You Expect with a Chase Dispute?
According to Chase, the dispute process for their cards includes the cardholder, the issuing bank, the credit card network, the acquiring bank, and the merchant. So, much like other chargebacks, everyone involved with the transaction is involved.
For specifically, a few steps happen:
- The disputed amount is refunded to the cardholder and a temporary deduction is made from the acquiring bank and the merchant's account. Chase experts also are on standby so that merchants have experts in place to answer any questions.
- Dispute documentation is created and distributed, at which time the merchant must provide evidence per a chargeback dispute. Chase chargebacks are unique in some regards in that they are supportive of merchants and provide their own paperwork during the process.
- If Chase decides that your information shows that the transaction is legitimate, they will return the disputed funds to your account.
If you are a merchant that has an online account with Chase, you can also set up alarms to warn you when you receive a dispute. This helps you respond faster and, if possible, deal with the customer directly.
What are Chase Bank Chargeback Fees?
If you use Chase Bank as your payment processor, the fee per chargeback is reportedly as low as $5. That puts them on the more reasonable end of the fee spectrum, but remember that chargeback fees can always add up very quickly if you aren’t taking care to prevent and minimize them. Some merchants faced as much as $40.00 for every dispute.
Issuing banks don’t levy fees to merchants, but if the results of the chargeback representment are not accepted by either party and the dispute proceeds to arbitration, the presiding card network will collect arbitration fees from the party that ultimately loses the dispute. Those fees can be as much as $500, so if you choose to proceed to arbitration, make sure you have a strong case.
What is Chase Bank Chargeback Policy?
Chase Bank allows its customers to dispute a transaction up to 60 days after it posts. Their website advises customers at multiple points to try to contact the merchant first and resolve any transaction issues directly with them.
Chase Bank accepts dispute claims over the phone, through their website, or via their mobile app.
Once the dispute is initiated, it proceeds to follow the usual chargeback process outlined by the card networks.
What is the Chase Bank Chargeback Time Limit?
The allowable timeframe for a Chase Bank customer to dispute a transaction is, as previously stated, 60 days. Customers cannot dispute pending transactions; they have to wait for it to actually post to their account before they can initiate a dispute. Chase Bank provides their customers with an estimate of “30 to 60 days” to investigate and render a decision on a dispute.
Once the process has begun, the most important time limits for merchants to remember are the ones imposed by the card networks. Here’s a quick rundown of some of the key time limits:
- 18 days to respond to a Visa dispute (whether you’re fighting or accepting the chargeback)
- 30 days to submit representment after acknowledging the chargeback
- 10 days to request arbitration after the pre-arbitration process is finished
Rather than trying to keep track of multiple different deadlines and timeframes, we recommend that merchants put a system in place that enables them to immediately respond to chargeback notifications in real time (or as close as you can get).
What is the Chase Bank Chargeback Process?
When Chase Bank accepts a dispute claim from one of their customers, they will give that customer a provisional credit for the transaction amount and notify the card network and acquirer. The acquirer will then debit your merchant account.
As an issuer, Chase Bank may submit retrieval requests to attempt to gather more information about the transaction before escalating a dispute to a chargeback.
As always, you should respond to retrieval requests immediately with as much relevant information as possible so that the chargeback can be prevented if at all possible.
If the retrieval does not return sufficient information to disprove the cardholder’s claim, an actual chargeback will follow.
Chase Bank Chargeback Portal
Chase Bank provides its merchants with optional access to an Online Chargeback Management System where they can view and respond to retrieval requests, submit representments and the associated documentation, and review their chargeback history. Merchants are not automatically enrolled, but must specifically request access.
While this portal has no bearing on merchants engaged in a dispute with a Chase Bank customer, if Chase Bank is your acquiring bank we strongly suggest you request access to their Online Chargeback Management System in order to be able to receive and respond to notifications in the most timely manner possible.
Benefits of Analyzing & Disputing Chargebacks
Fighting chargebacks can take some time and effort, especially if you aren’t used to it. It’s easy to look at a low-value chargeback and decide that it’s not worth your time to fight it. What you have to remember is that every chargeback—even a small one—impacts your chargeback ratio and carries fees that can add up to a lot of lost revenue over time.
Every chargeback represents a vulnerability in your business operations that could be improved, whether it has to do with your security measures against true and “friendly” fraud, the claims you’re making about your product, the efficiency and reliability of your fulfillment services, or the quality of the customer service you’re providing. Fighting chargebacks gives you the chance to learn more about why your customers are unhappy (or in the case of fraudsters, why they’re getting away with taking advantage of you).
When you understand the root causes of your chargebacks, you can take steps to address them and stop similar chargebacks from happening in the future.
Conclusion: Chase Bank Best Defense
Because the card networks wield so much power in the payment card ecosystem, there aren’t great variances in dealing with one issuer versus another. For the most part, they all have to abide by the same rules and create a level playing field for all participants in the system. That said, the culture and granular policies of each issuing bank can differ, so it’s always in your interest to familiarize yourself with the banks you’re coming into contact with.
In any case, Chase gives solid advice that all merchants should follow. If you want to prevent chargebacks, provide great customer services, follow fraud prevention best practices at the point of sale, and work with a chargeback prevention company to help manage alerts and disputes.
Just keep in mind that no matter who you’re dealing with, your best weapons against chargebacks are solid, transparent business practices, excellent customer service, and thorough documentation of your transactions and communications with customers.
How does Chase handle chargebacks?
Can you dispute a Chase chargeback?
How do merchants fight Chase chargebacks?