What is a chargeback? How does one happen?

Just received a chargeback?

Find out what to do if you’ve just experienced a chargeback.

A chargeback happens when a customer disputes a card transaction. Chargebacks can be costly for merchants–you could lose the dollar amount of the transaction, the related merchandise, and incur additional fees charged by the payment card networks. Be prepared: it can take over a year to resolve a chargeback.

  • Authorization

    A valid authorization code was not obtained or a declined response was given but the transaction was still completed by the merchant.

  • Cardholder disputes

    Cardholder disputes an issue with the transaction (i.e., goods or services not received, credit not processed, etc.)

  • Fraudulent use of card

    Cardholder didn’t authorize the transaction, it wasn’t captured with an imprint, or was completed with a non-CHIP terminal.

  • Processing or point of interaction error

    Usually an unintentional error (i.e., cardholder was charged twice, a sale was processed instead of a credit, etc.).


How to help reduce chargebacks

What can happen during a chargeback dispute?

  1. Chargeback

    Cardholder initiates a dispute and TDMS debits the Merchant. If the Merchant chooses to challenge the dispute, TDMS reviews and returns it to the card-issuing Bank.

  2. Pre-arbitration

    Cardholder's Bank reviews evidence with cardholder. If Cardholder continues dispute, Issuing Bank will notify TDMS of intention to escalate to Arbitration if not settled.

  3. Arbitration

    Evidence from Cardholder and Merchant is presented to the payment card network. Claim is assessed there and ruled upon.

For any current chargeback disputes call us at 1-800-363-1163

You received a chargeback. Now what?

If you wish to dispute the chargeback, you must respond to TD Merchant Solutions within 15 days of the debit from your account. To help remedy the dispute, send us as much information as possible.

Email TD.MSChargebackSupport@td.com with the subject line ‘Chargeback MID# (your Merchant Identification Number)

Or fax to TD Merchant Solutions at 1-888-257-6907


Documents required to dispute chargebacks

  • Legible copies of the transaction receipt(s)
  • Proof credit was issued
  • Any e-mails, contracts, or text messages between you and the cardholder
  • Signed proof of delivery

Need more help? 
Follow the appropriate links:

Mastercard for merchants
Visa for merchants
AMEX for merchants

Other online resources

We're here with advice to help you discover more tools and resources for transaction security.


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