Chargeback Fee Guidance

Chargeback Fee

When a Chargeback is received, the card scheme applies a Case Filing Fee that is then passed on. This is debited the same day the dispute is received. The amount will vary depending on the pricing schedule in the merchant contract.

Case Administration Fee

Due to scheme fees, the administrative costs of processing defence documentation and liaising with schemes, Trust Payments will also apply a Case Administration Fee.

Mastercard Pre-Arbitration Fee

If a Chargeback has been issued against a transaction processed using Mastercard, the card issuer can take the case to Pre-Arbitration once the initial Chargeback has re-presented. Mastercard apply a Pre-Arbitration Fee, which is debited on the same day. This will be the same amount as the previously mentioned Chargeback Fee.

At this stage the card issuer can also send a fee collection to re-debit the dispute amount.

Visa Card-Not-Present (CNP) Fees (Unsecure Fraud Dispute Fee)

Fees will be passed on to the merchant for each Chargeback dispute received for Visa transactions where the POS entry mode is "01" (key-entered) or "10" (card-on-file) and the electronic indicator is not "05" or "06".

 

Arbitration fees

 

 

The Arbitration Fee is applied when a dispute case has gone to Arbitration and the scheme has ruled against the merchant. Even if you win the case, Technical Fees may still apply, as described below:

Mastercard - Technical Violation fees

If the case is taken to Arbitration, mediators may apply Technical Fees for each violation of the dispute processing rules. Cases typically have 1 or 2 technical violations for procedural issues (e.g. invalid chargeback, invalid second presentment, etc.).

Visa - Technical Violation fees

If the case is taken to Arbitration, mediators may apply Technical Fees when a case is to be decided by Visa at Arbitration, meaning that if a case is won before that stage, additional fees do not need to be applied.

 

Compliance Fee

The Compliance processes established by the card schemes allow the issuing and acquiring banks to resolve problems related to transactions that fall outside the standard dispute resolution procedures. For example, issues that arise after a rental car charge has already cleared or where incorrect account details were provided. The Compliance process is subject to a fee if the case is lost.

Good Faith Request

If you miss the deadline to dispute a chargeback or lose a dispute, Trust Payments can submit a Good Faith Request to the card issuer on your behalf. This allows you to provide additional details about the charge that were not available during the original dispute, and request for the decision to be overturned in light of this new information.

  The card issuer is not obligated to overturn their decision and additional fees will be applied for this service regardless of outcome. We allow two weeks for the card issuer to respond before concluding the Good Faith Request was unsuccessful.

Please contact us if you would like help filing a Good Faith Request.

Adhoc Reporting Fee

An Adhoc Reporting Fee is applied when you request that Trust Payments perform additional work to challenge a dispute that you could handle yourself. This fee accounts for the extra effort required by Trust Payments based on the complexity of your request.

Excessive Page Fee

When challenging Chargeback disputes, card schemes limit evidence submitted to a maximum of 18 pages of documentation, which must be less than 10MB in total. We only accept documents that exceed these limits in exceptional circumstances, but this will incur an Excessive Page Fee by the card schemes.

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Viewing fees incurred from Chargebacks

 

Follow these steps to view details of fees incurred from the handling of Chargebacks:

 

  1. Sign in to RAM Tool.


  2. Navigate to Reports > Funding > Daily Funding

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  3. Input your MID number into the search box directly under the navigation panel and click "Change".

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  4. Set the date range when you processed transactions and want to see the data for.

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View Chargebacks

From the results returned, click "Chargebacks". This will show the disputes in question alongside the Acquirer Reference Number (ARN), currency, amounts and other relevant info.

View Chargeback Fees

From the results returned, click "Chargeback Fee". This will show the relevant amounts.

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