Not as Described or Defective Merchandise/Services, Condition 13.3
Your card processor has notified you that a cardholder is disputing a transaction that you processed.
The cardholder's bank received a notice from the cardholder claiming that the goods or services were one or more of these:
Merchandise or services did not match the description on the transaction receipt or other documentation presented at the time of purchase.
Merchandise or services are not the same as your verbal description (for a telephone transaction 1).
1This only applies for US Domestic, Canada Domestic and Interregional between Canada and US Regions.
The merchandise was received damaged or defective.
The cardholder disputes the quality of the merchandise or services.
There are several common causes for this type of dispute:
You sent the wrong merchandise to the cardholder.
You sent the merchandise, but it was damaged during shipment.
You inaccurately described the merchandise or services.
You did not perform the services as described.
The merchandise or service was as described.
Provide specific information (invoice, contract, etc.) to refute the cardholder's claims. Quality disputes are where the customer does not agree with the condition of merchandise or service received (e.g., a car repair situation or quality of a hotel room). There may be instances where you will need to obtain a neutral third-party opinion to help corroborate your claim against the cardholder. Provide as much specific information and documentation as possible to refute the cardholder's claims. It is recommended that you address each point that the cardholder has made.
Returned merchandise was not received or services were not cancelled.
Advise that you have not received the returned merchandise and the cardholder never attempted to return or cardholder has not cancelled services. However, double check your incoming shipping records to verify prior to response.
The merchandise was replaced or repaired.
Provide evidence of the following:
The cardholder agreed to repair or replacement
Repair or replacement was received
The repair replacement has not since been disputed
You have already processed a credit or reversal for the transaction.
Provide documentation of the creditor reversal include the amount and the date it was processed.
The cardholder no longer disputes the transaction.
Provide a letter or email from the cardholder that states they no longer dispute the transaction.
How to avoid this dispute in the future
Ensure that the description of merchandise or services shown in advertisements, online, and transaction receipts, or used in telephone order-taking scripts are accurate, complete, and not misleading.
Never refer the cardholder to the manufacturer in lieu of attempting to resolve the issue. The merchant of record is considered the liable party/point of contact for resolution.
Merchants should keep in mind that their return policy has no bearing on disputes that fall under this dispute condition.
Acquirer's approach or timelines may be different and you should adhere with your current Acquirer's process. Not all disputes apply to every country/region, please check with your acquirer for further information.