Tag: TSP143III

To understand the role receipts can play in fighting friendly fraud, it’s important to know how the process is supposed to work.

When a cardholder calls their bank to dispute a charge, the bank will usually tell the cardholder to try resolving the issue directly with the merchant. If the customer says they have already tried, the dispute will likely advance to a chargeback. Transaction funds are removed from the merchant’s account and returned to the cardholder. The merchant may not be informed about this until days later.

This may seem unfair, but again, merchants can contest the claim through the process of representment, which involves providing the bank with compelling evidence showing the transaction was valid.

Sometimes, a copy of the transaction details will be all that’s needed. Some point-of-sale solutions at physical stores will record and store copies of receipts, and can send them in response to the bank’s request.

That sounds convenient, but it may not be the best choice. While digital files work in the majority of cases, electronic files are more susceptible to manipulation. That means the bank may require more evidence.

Online retailers don’t really have another option, but for in-person sales, a scanned copy of a printed paper receipt can be more efficient and cost-effective. It’s hard to argue against a printed receipt. The specifics are literally all there in black and white.

If the bank sees that the customer’s claim is unwarranted, it may overturn the chargeback. Not representing the chargeback, however, means the fraudster may end up with both the product and a refund.