Merchant Disputes

It is very important when taking a merchant dispute to explain how the dispute works:

• No provisional credits are given. Note: If one is given this is just a nice surprise for the client
• Can take up to 90 days awaiting on merchants response 
• Credit hinges on the merchant refunding the money
• Oftentimes, the client can get faster results by reaching out to the merchant. If the client has been unsuccessful in reaching the merchant, proceed with dispute

The following reasons are why merchant disputes cannot be refunded the same way fraud disputes are refunded:

• The client authorized to purchase from the merchant
• The client gave the merchant their debit card information  Note: Just because the client made a purchase with their debit card, does not mean the bank is responsible for refunding the money
• The made a purchase from the same merchant with a check, the bank would not refund those funds
• The only difference when purchasing with a debit card is the bank can attempt to recover the funds from the merchant. Note: CCB does not refund the purchase, the bank attempts to recover the funds from the merchant

Best Practice: The next time you have a client who is having a hard time understanding why we cannot recover funds for them, try explaining it differently.

Fraud Disputes

• If a client freely gives their card number or check to the person or merchant, this is not considered fraud and the funds are not refundable
• When a client uses their debit card to make a purchase and then discovers they did not receive the merchandise, the bank can recover the funds as fraud. Note: The bank can however take a merchant dispute and attempt to recover the funds on behalf of the client
  • For Example: If a client hires a person to repair their roof and writes the contractor a check for the repairs but later finds out the contractor is unlicensed or never completed the repairs, the bank wouldn't reimburse the client. The bank would not recover the funds on behalf of the client because the client willingly gave the contractor a check

This is a dispute between the merchant and the client. Note: Under certain circumstances, CCB can file a merchant dispute to attempt to recover funds but the dispute hinges on whether the bank can recover the funds from the merchant.

The same guidelines apply to debit cards. If the client willingly authorized the purchase, the bank isn't able to refund as fraud. The bank attempts to recover the funds from the merchant. Note: If you have questions about this type of dispute, please contact CMD.

Best Practice: The next time you have a client who is having a hard time understanding why we cannot recover funds for them, try explaining it differently.