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The Execute stage focuses on maintenance tasks such as fraud reporting, card block and reissue, and accounting. These tasks will be completed through automation unless there is a workflow failure or by client request.
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Representments & Pre-arbitration
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We'll review the merchant's response (documents) to determine if they delivered on the agreed-upon contract with the member for non-fraud claims and conclude whether fraudulent activity had occurred on fraud claims.
This process is called "representment" by Mastercard and "pre-arbitration" by Visa.
There are several actions we can take depending on the results of the investigation:
- Respond to the merchant by declining their representment/pre-arbitration
- Deny the dispute by accepting the merchant's representment/pre-arbitration
- Write-off the dispute by accepting the merchant's representment/pre-arbitration
- Request documentation or information by pending the dispute
| Write-off scenarios | Next steps |
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| The claim is past the regulation date. | Write-off the dispute. Note the following: Unable to deny due to Reg date, sent paid letter on (date) |
| The dispute is under the recovery threshold. | Write-off the dispute. Note the following: Unable to pursue Pre-arb due to under recovery dollar threshold |
| Dispute was autopaid by QFD | Copy and paste the autopay decision into your notes:
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| Deny scenarios | Next steps |
| Merchant documents confirm they fulfilled the agreed-upon contract. (Non-fraud) | Deny the dispute using the Accountholder Liable reason. Send the merchant documents to the cardholder and notate: Merchant documents have been reviewed and prove that the merchant delivered on the contract by providing the service/merchandise promised. |
| Merchant documents confirm the member's identity and authorization of the disputed charges. (Fraud) | Deny the dispute using the Poof of Authorization reason. Send the merchant documents to the cardholder and notate: Merchant documents have been reviewed and the cardholder's name, cardholder billing/shipping address, AVS response, CVV Response, and IP address match the customer. The provided IP Address is within the customer's geographic location. Due to the above information, the claim is being denied at this time. |
| The member doesn't send in the requested documents after the allotted time. | Deny the dispute using the No Error reason. Note the following: On (enter date) we requested additional information related to this purchase. To date, we have not received a response. Without the required information, we are unable to pursue recovery on your behalf. |
| Pursue Pre-arbitration scenarios | Next steps |
| Merchant documents are not legible, relevant, or in English. | Decline the merchant response and notate the following: (Fraud) After reviewing the representment details, the documentation provided is illegible and invalid. The cardholder maintains they did not authorize the charge(s). Pursue pre-arb. (Non-fraud) After reviewing the representment details, the documentation provided is illegible and invalid. The cardholder maintains (reiterate claim reason). Pursue pre-arb. |
| Merchant documents do not address the cardholder's dispute reason. (Non-fraud) | Decline their response and notate the following: Merchant documents are invalid. Documents address that the charge was authorized, which the card holder acknowledges. The documents fail to address the initial chargeback reason of (reason). There is no information provided to indicate the merchant has remedied or addressed the cardholder original dispute issue. Cardholder is due credit. |
| Merchant documents do not confirm the cardholder authorized the transaction. (Fraud) | Decline their response and notate the following: The merchant documents have been reviewed and the merchant did not provide any identifiable cardholder information that matches our customer. There is no information provided to indicate cardholder participation or benefit. Due to the inaccurate information sent in by the merchant, Cardholder maintains fraud. Or The merchant documents have been reviewed and the cardholder's name, address, and email address do not match the customer. The IP address is out of the cardholder's geographical area, showing as (city, state) while the cardholder resides in (state). Due to the inaccurate information sent in by the merchant, cardholder maintains fraud |
| Other scenarios | Next steps |
| We request additional information or documentation from the member in response to merchant documents. | I am pending this claim (10 days) to allow the customer sufficient time to respond to the documents submitted by the merchant in order to make a pay/deny decision. |
| The merchant documents show the full card or account number. | Before sending documentation to the cardholder, download the document and censor the card or account number so that only the last four digits are visible. |
| The merchant responds stating that they'll issue merchant credit. | Select Do Not Pursue Recovery from Other Actions. Enter the following in the Reason box: Cancelling recovery for merchant credit per merchant docs Select Pend Until Resolution from the Process Liability drop-down. |
Processor Timelines
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| Processor | Acquirer Represents | Issuer Responds to Representment | Acquirer Responds to Pre-arbitration | Issuer Pursues Arbitration |
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| The merchant responds to the chargeback. | We respond to the merchant documents and pursue pre-arbitration. | The merchant responds with additional documentation. | We initiate arbitration, in which the processor will determine who wins or loses the claim. | |
| Mastercard | 45 days | 45 days | 30 days | 75 days |
| Visa | 30 days | 30 days | 30 days | 30 days |
| Star | 30 days | 30 days | 30 days | 30 days |
Provisional Credit is mandated by Regulation E and must be provided within 10 business days of the claim date.
Reversal Timeframes Anchor Reversal Reversal
| Same Day Reversal | Reversal Pended for 5 Days |
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| Credit card accounts | All other scenarios |
| Member withdraws the claim | Client bank requests additional time to be provided to member |
| Client bank requests same day reversal *Must not violate Regulations | Note: Debit card claims that are not covered by Regulations will be set to same-day reversal. Adjust the reversal to allow for 5 business days as a customer courtesy, requested by client banks. |
Other scenario in which you believe a same-day reversal is warranted |