This Chargeback Policy sets forth the standards and procedures for review and approval of chargebacks to Merchants. Liquidated Damages will be paid to Merchants in accordance with the standards and procedures set forth below.
Capitalized terms not defined in the Merchant Services Agreement signed by the parties shall have the meaning set out below:
- “Chargeback Window” means a period commencing on the date on which Forter reviewed the Non-Suspect Transaction and expiring (a) 120 days thereafter for Visa, MasterCard and American Express transactions; (b) 18 months thereafter for Discover; or (c) such timeframe as may be determined by any other credit card issuer or payment processor, but in any event no longer than six months.
- “Eligible Chargeback” means a chargeback with regard to which Merchant receives a chargeback notice from a credit card issuer or payment processor under one of the reason codes stated in Section 5 below during the Chargeback Window with respect to a Forter Reviewed Transaction which Forter has identified in accordance with the terms herein as a Non-Suspect Transaction.
- “Live Transaction” means a real time live Transaction.
- “Off-Site Transaction” means a transaction manually submitted by Merchant or originating from a different source than a Merchant Site (including transactions originating from marketplaces such as eBay and Amazon).
- “Required Information” means the information requested as part of the Forter API.
- “Transaction” means a transaction made by an end customer on a Merchant Site (as such term is defined in the services agreement entered into between Forter and the applicable Merchant).
- “Merchandise Value” means the USD value submitted to and captured by the Merchant’s credit card processor for a given Live Transaction. For the avoidance of doubt, Merchandise Value shall excluding any processing fees or other associated fees that may be charged by the Merchant’s credit card processor.
2. Chargeback Eligibility
- Forter shall review all Transactions which are submitted for processing through the Forter Platform, subject to the following conditions (“Forter Reviewed Transaction“): (i) the Merchant timely submitted the accurate and complete Required Information to Forter through the Forter Platform or within three (3) days of the chargeback being issued (any missing Required Information for a Transaction shall result in an error notification and will not be analyzed by the Integrated Service, and any changes to the Required Information after the Transaction is reviewed will disqualify the Transaction from being a Forter Reviewed Transaction); (ii) the Transaction was accepted and reviewed by Forter during the Term; (iii) the Transaction was a Live Transaction and was not an Off-Site Transaction. Forter reserves the right to reject any Transaction submitted by Merchant with incomplete data or which does not comply with the terms of this Policy.
- For all Forter Reviewed Transactions, Forter will provide a timely notification through the Forter Platform indicating whether Forter believes the Transaction is unlikely to exhibit characteristics of suspected fraud (a “Non-Suspect Transaction“). In the event Forter Service is unavailable due to an issue on the Forter platform, a Transaction will be considered a Non Suspect Transaction if the merchant complied with the Forter SLA integration guidelines with regard to implementing the proper 2 second timeout window, a single retry policy, and the applicable query rate limit.
- If Merchant receives a chargeback notice from a credit card issuer or payment processor under one of the reason codes stated in Section 5 below with respect to a Forter Reviewed Transaction which Forter has identified in accordance with the terms herein as a Non-Suspect Transaction, and such chargeback notice was received by Merchant during the Chargeback Window, such chargeback shall be deemed an “Eligible Chargeback“.
- Notwithstanding the foregoing, any chargeback notice received with respect to a Forter Reviewed Transaction approved for airlines undergoing a Force Majeure Event will not be an Eligible Chargeback. The term “Force Majeure Event” means, for the purposes of this Chargeback Policy, events such as labor strikes or extreme weather events affecting an airline, or if an airline is judged bankrupt or insolvent, makes a general assignment for the benefit of its creditors, a trustee or receiver is appointed for the airline, or any petition by or on behalf of such party is filed under any bankruptcy or similar laws.
3. Chargeback Disputes
Upon chargeback submission, but in any event upon Forter’s demand, Merchant shall provide Forter with details of all Eligible Chargebacks, in accordance with the procedures provided by Forter, including but not limited to providing Forter with a full copy of the chargeback notice issued by the credit card issuer or payment processor, any accompanying documentation, proof of delivery of any related purchase and proof of delivery and receipt signature for transactions over $1,000 US dollars (the “Chargeback Documentation”).
- Merchant shall provide Forter with all information required by Forter for dispute purposes, including:
- Chargeback notification which includes a case number, reason code, and due date
- Invoice of the TX
- AVS response
- Any additional related information reasonably requested by Forter
- Merchant hereby assigns all of its right, title and interest in the Eligible Chargeback to Forter, and shall provide all reasonable assistance required by Forter to dispute the chargeback and otherwise mitigate Forter’s exposure to Liquidated Damages. Merchant acknowledges that Forter may appoint a third party to act on its behalf in pursuit of the Eligible Chargeback, and undertakes that it shall provide Forter or its designee any and all information and documentation reasonably requested for the dispute, processing or review of the Eligible Chargeback. Additionally, Merchant acknowledges and agrees that Forter may share data and information relating to an Eligible Chargeback with certain third parties (including issuers, acquirers, payment processors, and card schemes), as may be reasonably necessary or desirable in connection with disputing an Eligible Chargeback.
- If the amount of the successfully disputed Eligible Chargeback is deposited in or credited to an account held by Merchant (or any agent or affiliate of Merchant), Merchant undertakes to forward such amount to Forter within five business days of receipt.
4. Liquidated Damages
- “Liquidated Damages” shall be a sum equal to the Merchandise Value for the applicable Eligible Chargeback, provided it does not exceed the amount stated in the Chargeback Documentation submitted to Forter.
- The payment of Liquidated Damages shall be made subject to full payment of Forter’s service fees then due and payable from Merchant, to the provision by Merchant of all Chargeback Documentation (to the extent requested by Forter), and to the assignment by Merchant of all of its right, title and interest in the Eligible Chargeback to Forter (to the extent requested by Forter).
- The payment of Liquidated Damages shall be made by setoff of Fees payable by the Merchant to Forter in the next billing cycle.
5. Reason Codes
Code #4837 and #37 – Fraud Transaction No Cardholder Authorization
Code #4863 and #63 – Cardholder Does Not Recognize Potential Fraud (In case of this reason code, Joint Merchant must provide to Forter all documentation relating to all attempts made by the cardholder to contract Joint Merchant and resolve the issue directly, together with all related correspondence and documentation.)
Code #10.1 (Previously #62) – Counterfeit Transaction (for Card Not Present transactions only)
Code #10.4 (Previously #83) – Fraudulent Transaction: Card Not Present Environment
FR2 – Fraudulent Transaction (*)
F29 – fraud – Card Not Present
F24 – fraud – No Card Member Authorization
Code UA02 – Declined Authorization
Code 7030 – Fraud card not present transaction
Code 546 – unauthorized purchase
Unauthorized Transaction – Account Holder did not Authorize Transaction
Unauthorized use – as a result of fraudulent activity (as stated in the PayPal chargeback notification)
(*) = Merchants who are members of the Amex Chargeback Full Recourse Program must disclose this fact to Forter prior to the commencement of the Forter Service.