THE value of chargeback
ADMs tends to be high as
it is usually the full ticket
cost that is charged back,
says Michelle Boshoff, gm of
Central Services Pentravel.
Dinesh Naidoo, group
operations director of SWG,
says there are three main
reasons for chargeback ADMs:
client disputes; fraudulent
transactions; and mistakes on
behalf of the travel consultant.
Fraud is the most common
reason for ADMs, according to
Dinesh.
Here are some tips for how
agents can avoid chargeback
ADMs:
1. Gather credit card
information
Always make sure to gather
the credit card security codes
(CVV). When conducting a
card payment authorisation
request, it is important to add
this security value to the other
card details and to take note,
alongside the approval code,
of the CVV2 verification result.
The credit card machine will
generate responses the agent
should take note of.
Possible responses are:
‘M – Match’: cardholder’s
provided CVV2 was verified
and validated by the issuer
‘N – No Match’: cardholder’s
provided CVV2 does not
match
‘P – Request not
Processed’: the verification
was not performed (technical
issue)
‘U – Issuer does not support
feature’: in rare cases, the
issuer is not registered with
the card scheme to use this
security feature.
2. Avoid friendly fraud
Friendly fraud, whereby the
customer doesn’t recognise
the transition and contests it,
is one of the main reasons
for chargeback ADMs at
Pentravel, even though this
happens very rarely, explains
Michelle. “On the odd
occasion we have received
a chargeback ADM, it is
because the client was unsure
of the transaction or didn’t
recognise it on their statement
as our charge for their ticket.”
Inform your customer that on
their statement they should
not expect to see the name of
your travel agency but instead
the name of the airline that
the ticket is issued on, and
remind them to try and verify
the amount being charged
before raising an inquiry or a
dispute with their card issuer.
3. Resolving a
chargeback dispute
When receiving a request for
information on the transaction,
it may be more efficient for
the travel agent to contact his
or her client and ascertain
what the nature of his
inquiry is.
In other cases, when
contacting the customer is
not feasible, the following
information may also be
useful in contributing to the
resolution of a chargeback:
Clearly signed (if applicable)
itemised invoice/receipts
that support the transaction,
including a copy of the
booking and reservation
notice;
Proof of confirmation for
booking or reservation issue:
Pax information is only
useful when the cardholder
is the traveller;
Proof that the cardholder
agreed to the transaction or
authorised a third party to
make the purchase. A letter
is often not enough as this
can be seen to be forged.
However, the billing address
can be verified in some
cases;
A copy of your terms
and conditions including
your cancellation, return,
refund and no-show policy,
as well as proof that this
information was provided to
the customer at the point of
sale. Proof can take the form
of e-mail conversations, for
example.
4. Tighten fraud
processes
Fraud is a clear example
where chargeback ADMs
would occur. Says Michelle:
“We have received a
chargeback where a person
disputed a fraudulent charge
on their card – their card
had been cloned and used
illegally. Thankfully, it was a
small amount but it presented
an opportunity for us to
tighten up fraud checks and
processes in stores.”
How to avoid chargeback ADMs
Comments | 0
