Transcript Disputes & Fraud………… The Differences

Disputes & Fraud…………
The Differences
PCard Summer School
July 30, 2009
Dureen Berg, PCard Coordinator
Overview
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Identify disputable and fraudulent transaction
Definition of disputes and fraud
Dispute and fraud process
Fraud investigation and recovery
Transfers, credits and charge backs
Questions/Discussion
Dispute or Fraud?????
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A transaction is in PaymentNet that you don’t have a
receipt for and the cardholder does not recognize the
transaction. Should you dispute it or report it as
fraud?
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A PCard was charged for merchandise received, but
the cardholder informed you that it was paid for with
a check. What action should be taken?
Fraud and Disputes Defined
Fraud
 Fraud is defined as an unauthorized transaction(s)
made with a lost, stolen, compromised or counterfeit
card/card number
Dispute
 Disputable transactions are merchant errors or errors
in billing between the merchant and
cardholder. Some examples include: multiple
billing, billing wrong amount, billing without
receiving merchandise, billing on a cancelled order.
Additional Dispute Information
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Dispute process does not stop or delay
payment of the charge
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Recurring charges
 It is cardholder’s responsibility to cancel
any reoccurring charges should the card be
canceled (i.e.. Internet, cell phone, etc)
Dispute Process
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Cardholder contacts merchant
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Problem is not resolved
Reconciler/approver contacts PCard office prior to initiating dispute in PaymentNet
Dispute must be initiated within 60 days from the statement cycle date that the disputed
charge appears
Reconciler/approver enters dispute in PaymentNet
JPMorgan Chase bank puts transaction into dispute status
JPMorgan Chase bank applies temporary chargeback credit to PCard
JPMorgan Chase bank contacts merchant bank
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Merchant bank has 45 days to submit rebuttal to JPMorgan Chase dispute department
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No merchant response - chargeback credit becomes permanent
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Merchant responds – rebuttal sent to cardholder for response
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Cardholder must respond within specified time period or dispute dropped
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Can result in arbitration with VISA for additional 30 days
How do I dispute a transaction?
Reconciler or approver selects transaction to access detail screen
Documentation needed
Dispute Reason
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I have been billed for an
incorrect amount
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Merchant was to issue credit for
merchandise returned to the store
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I have been charged for purchase
that was paid for by other means
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Merchandise/Service received
damaged or not as described
Additional Documentation Needed
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Copy of receipt that shows
correct amount
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Copy of credit receipt received
at store
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Copy of documentation showing
the other method of payment:
cash receipt, copy of check, copy
of other credit card statement,
etc
Copy of returned mail receipt
from returning the merchandise
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PaymentNet
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A yellow square appears next to disputed transaction
Yellow Square Indicator
Square will turn red indicating transaction is in
dispute process
PaymentNet
2345678 Posted 05/13/2009 06/24/2009 DUCK DONALD CHARGEBACK
CREDIT ($41.78)
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Enter note in transaction detail screen indicating credit is for transaction
1234567, your initials and date
1234567 Posted 05/13/2009 05/15/2009 DUCK DONALD NATIONAL
SEED CORP $41.78
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Enter note in transaction detail screen referencing transaction number for
credit
Fraud Process-Individual PCard
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Fraud is identified on PCard
Fraud charges should NOT be disputed in PaymentNet
Cardholder notifies JPMorgan Chase Bank (800) 270-7760 and PCard
office 626-9091
PCard cancelled and new Pcard issued
Cardholder informs UAPD of fraudulent transaction and obtains case
number
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Department provides PCard office with UAPD case number
Fraud affidavit sent to cardholder
Cardholder returns affidavit to bank and copies PCard office
Bank recovery investigator requests documentation from merchant(s) on
the fraud transaction(s) (Process takes 45-90 days)
Chargeback credit(s) issued after settlement
Fraud Process-Department PCard
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No fraud rights through JPMorgan Chase Bank on a department PCard
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Fraud is identified on PCard
Fraud charges should NOT be disputed in PaymentNet
Cardholder notifies JPMorgan Chase Bank (800) 270-7760 and PCard office 6269091
PCard cancelled and new PCard issued
Cardholder informs UAPD of fraudulent transaction and obtains case number
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Department provides PCard office with UAPD case number
Fraud affidavit sent to cardholder
Cardholder returns affidavit to bank, copies PCard office and Risk Management
(if property loss report submitted)
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Fraud Process-Department PCard
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Submit Property Loss Report to Risk Management if
total incident is $100 or more
http://risk.arizona.edu/forms/PropertyLossForm.doc
Make two written attempts to have Merchant reverse
charge
Provide Risk Management with merchant’s response
Inform PCard office and Risk Management if
merchant credits PCard
How do I reconcile/approve fraudulent
transaction and transfers?
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Code to FRS account with money
Mark transaction service/tax exempt
Indicate in transaction detail screen transaction
fraudulent, PCard cancelled, PCard office notified,
initial and date
Cross reference fraudulent transaction with credit
and transferred transaction
Print Transaction Detail screen and submit with
monthly receipts to FSO Compliance
What do the XFRD’s mean?
ID
T Date
P Date
LName
FName
Merchant Name
TranAmt
Srvc/tax exmpt
FRS Acct
OC
Dept
Acct #
1031582
2/26/09
2/26/09
DUCK
DONALD
FRAUD CHARGEBACK
-$155.58
1
111111
2222
333
1234
1004094
1/6/09
1/6/09
DUCK
DONALD
XFRD/DAFFY FEEDS/
1234
-$155.58
1
111111
2222
333
2345
1004054
1/6/09
1/6/09
DUCK
DONALD
XFRD/DAFFY FEEDS/
2345
$155.58
1
111111
2222
333
1234
999303
1/1/09
1/3/09
DUCK
DONALD
DAFFY FEEDS
$155.58
1
111111
2222
333
1234
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Old account ending 1234 closed and all transactions
automatically transferred to the new account ending 2345
Old account ending 1234 manually debited to house dollars
until fraud investigation completed
New account ending 2345 credited
Final chargeback credit applied to the old account ending
1234
Questions/Discussion