Representment and chargeback percentages do not always have to be for the entire value of the transaction. If a retailer decides to challenge a chargeback, there might be a variance between the cost of the chargeback and the amount of the representment. None of them can be equal to the maximum value of the payment. In some situations, cardholders can choose to process a limited chargeback instead of a full chargeback.
This will occur if the account holder believes that they have issued only a fraction or half of the goods and services requested, or if the account holder argues that the goods and services are overbilled by the retailer or if they disagree to just a component of the good and services bought. The account holder can only challenge the extra balance issued by the retailer.
The chargeback can be requested by the account holder for getting the full or substantial value of the transaction. The chargeback can be requested due to the following reasons.
Cardholders get the option to sue one refund for the entire amount or several partial refunds, as long as the actual refund does not surpass the initial amount of the purchase.
Merchants can challenge a chargeback with an amount less than the representment value. It is stated on the website of Master card that the acquirer cannot submit a different application for a volume larger than that of the issuer, however, the acquirer can issue a secondary submission for a lower value.
Visa regulations have clearly stated that the value of representment should fulfill one of the following conditions.
You need to know that if you will not challenge a chargeback, the bank will consider it a valid claim by the cardholder. Acknowledging all those chargebacks will damage your relationship with issuers and make them more likely to hold you accountable in contract conflicts.
It also helps good scammers to get away with crime through cheating, providing them an optimistic boost to practice this dangerous activity.
Knowing what kind of facts to send, how and when to compose a convincing rebuttal reply, and when to simply acknowledge a legitimate chargeback are the keys to preserving a better record against nice cheating as well as other beatable chargebacks. Successful representment policies, as well as effective efforts to avoid chargebacks that can’t be pursued, are needed to defend yourself.