Fraud Dispute Category

The fraud dispute category is one of the four dispute categories for first-time disputes. This category is used when a cardholder claims that they do not recognize a transaction, didn't participate, and didn't provide permission for the transaction to be charged to their account. The assumption is that the cardholder's card information has been used without their knowledge. Included in this category are disputes created due to "friendly fraud." This type of fraud may be caused unknowingly by a cardholder's family member or cardholder. 

When responding to these types of disputes in Merchant Manager, you will be prompted for additional compelling evidence and supporting documentation. Include the following information:

• A one-page concise review of why you are responding to the dispute:

  1. Summarize the supporting information you are including;
  2. Address specific complaints or points made in the cardholder documentation (viewable in the Dispute Detail);
  3. Highlight key timeline points, customer interactions, or relevant, compelling information that provides evidence that the cardholder participated in the transaction.

• Include supporting compelling evidence such as:

  1. Positive Address Verification (AVS) and Card Verification Value (CVV) matches during authorization;
  2. Proof of product delivery to the cardholder (use of a delivery vendor that has tracking and requires signature is advised);
  3. Copy of receipts, invoices, or contracts, including a description of any products or services provided;
  4. Any communication with the cardholder regarding the purchase, including the cardholder’s email address;
  5. Proof that the cardholder downloaded goods from your company’s website, including purchaser’s IP address, time, date, and device details;
  6. The card is used in a previously undisputed transaction;
  7. Other proof showing the cardholder or a member of their family has received and/or used the merchandise or services.

The following table provides the reason description and the reason code used by a particular card brand: