1. Heartland Payment Systems Hospitality Solutions Group
Sherry Cronin
Sr. Consultant for Restaurants

2. Agenda Review the basics of Chargeback Management
Understanding chargeback notifications and response requirements
Best practices
How the chip card/EMV liability shift affects chargebacks
What is required to protect your business

3. Guilty until proven innocent.
Basics of Chargeback Management
Retrieval
vs.
Chargeback
The Issuer’s request for a copy of a transaction receipt. A response is required to address the dispute. If the cardholder wins the dispute, it becomes a chargeback and the funds of the transaction will debit at that time.
A dispute initiated by the cardholder or issuer and a recall of funds (debit). Depending on the reason for the dispute and rules associated, merchants have re-presentment rights and the opportunity to attempt to remedy the dispute for many chargebacks although not all.
Innocent
Guilty until proven innocent.
until proven guilty

4. Notification and Response
Card Brand Chargeback Response Times (no exceptions)
Card Brand Retrieval Response Times
Visa/MC/Disc 30 DAYS
AMEX 20 DAYS
Notifications vary by processor. Could be electronic ( or online access), fax, or letter.
Merchants should diligently follow card brand rules to minimize their risk of dispute losses.

5. Best Practices Always process Chip Cards as Chip Transactions
Non-Chip Cards — Swipe the card through the terminal
Declines — Ask for another form of payment, do not re- swipe
Match the last four numbers on the slip
Request/Check the signature
Keyed/Manual entry transactions
Check the expiration date
Make an imprint
Face-to-face deliveries require imprint and signature

6. Liability Shift – Chip Cards and Chargebacks
New Rule: Process Chip Cards as Chip Transactions
Merchants that do not have a terminal or POS system capable of reading EMV cards will be responsible for chargebacks and fraudulent card acceptance beginning October This applies only when an EMV card is presented at the POS; otherwise, the current liability responsibility remains in place.
Best practices:
In order to protect your business from chargebacks on chip cards, you need to be at least Chip enabled
When processing a chip card, follow the instructions on the terminal
You are not protected if a chip card is swiped or keyed

7. Chip Card Chargebacks Are On the Rise
Volumes are increasing as more chip cards are issued. Large Metro Cities, Large issuing banks.
Restaurants
Ecommerce (Gift Cards)
Micro Payments – Vending
If your restaurant POS system has not deployed an integrated or semi-integrated EMV solution, consider going to a non-integrated solution for the time being (ex: standalone credit card terminal).
Consider your environment and the amount of dollar threshold you are willing to risk.

8. More to come…. Stay informed
Please join us for an in depth follow up webinar on EMV & Chargebacks
Updates
Trends
Best Practices
Date: January 14, 2016
Time: 2:00 PM Eastern
Registration:
Heartland Payment Systems Hospitality Solutions Group
Sherry Cronin
Sr. Consultant for Restaurants