JPMorgan Chase Chargebacks

Table of Contents

1. How Do Chase Chargebacks Work?
2. What Are Chase Bank's Chargeback Fees?
3. What Is the Time Limit for Chase Chargebacks?
4. What Is the Chase Online Chargeback Management System?
5. Benefits of Analyzing and Fighting Chargebacks
6. How Should Merchants Handle Chase Chargebacks?
7. How Do You File a Chargeback With Chase?
8. Can You Fight a Chase Chargeback?

While the rules for chargebacks are defined by the card network involved, it's the issuing bank that actually handles the dispute process. This means that there's a certain amount of leeway these banks have when deciding whether to grant a chargeback to a customer and whether to reverse a chargeback based on evidence from the merchant. In addition, different banks give their customers different information and guidelines with regard to disputing a charge. For merchants, understanding how different major banks handle chargebacks can provide insight that can help fight and prevent them more successfully.

JP Morgan Chase is the largest bank in the United States, and one of the largest issuers as well. With an estimated 83 million credit cards in circulation, many of the chargebacks a merchant receives will be handled by this bank. To make sure you're prepared to manage these chargebacks as effectively as possible, let's go over how Chase chargebacks work, how Chase might differ from other banks, and how merchants can use this information when fighting disputes.

While it’s easy to see issuers as the opponents in your ongoing battle with chargebacks, remember that they're incentivized to abide by the card network rules and examine any evidence the merchant presents carefully. 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 help you learn what you need to know about navigating their chargeback process.

Chase recommends their customers do two things before disputing a charge. First, the bank asks customers to click on the transaction in their account to review the full transaction details, which may help them identify a transaction that seems unfamiliar. If that doesn't resolve the issue, Chase says customers should contact the merchant. The full transaction details will usually include a phone number, so customers won't have to go digging for a way to do this.

Customers are advised to write down the date of the call, who they spoke with, and what their response was. A call to the merchant will almost always resolve whatever issue the customer is having, but if it doesn't, Chase may ask for these details. In part, this is to put one more roadblock in the way of customers who might lie and say they contacted the merchant when they haven't.

In rare cases where contacting the merchant doesn't resolve the problem, the customer can open a dispute by following the instructions on the transaction details page.

When Chase Bank accepts a dispute claim from one of their customers, it will give that customer a provisional credit for the transaction amount and notify the card network and acquirer of the chargeback. The acquirer will then debit your merchant account.

Here's a basic outline of the chargeback process:

1. The disputed amount is refunded to the cardholder and a deduction is made from the merchant's account.
2. Dispute documentation is created and distributed, at which time the merchant may choose to fight the chargeback through representment.
3. In representment, the merchant must provide compelling evidence proving that the charge was legitimate and the customer's claim is false. Chase chargebacks are unusual in that the bank provides its own paperwork for merchants during the process.
4. Chase will review the evidence provided and make a decision.
5. If Chase decides in the merchant's favor, it will return the disputed funds and revoke the cardholder's temporary credit. If Chase is unconvinced by the evidence provided or if the merchant chooses not to fight the chargeback, the temporary credit will become permanent.

If you're a merchant that has an online account with Chase, you can set up notifications to tell you when you receive a chargeback. This helps make sure you can respond before the deadline passes you by.

If Chase is the issuing bank, it will have no effect on the chargeback fee the merchant will pay. That fee is determined by the merchant's processor. The amount of the fee will depend on the processor as well as on a risk evaluation of the merchant.

Customers cannot dispute pending credit card transactions; they have to wait for it to actually post to their account before they can initiate a dispute. Pending debit card transactions can be disputed by contacting Chase over the phone, but can't be disputed online until the charge posts.

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 deadlines for merchants to remember are the ones imposed by the card networks. Here’s a quick rundown of some of the key time limits:

Visa

• 30 days to respond to a dispute
• 10 days to pursue arbitration, if desired

Mastercard

• 45 days to respond to a dispute
• 45 days to pursue arbitration, if desired

Rather than trying to keep track of all the different deadlines for each chargeback, 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).

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 and Fighting 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.

Because the card networks wield so much power in the payment card ecosystem, there aren’t huge differences 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.

If you want to prevent chargebacks, provide great customer service, utilize effective fraud prevention, and take advantage of the expert advice and services a chargeback management company can provide.

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.

FAQ

Thanks for following the Chargeback Gurus blog. Feel free to submit topic suggestions, questions or requests for advice to: win@chargebackgurus.com