APRP Chargebacks & Dispute Resolution 4 — Questions and Answers
Question 1: A merchant receives a chargeback under Visa reason code 13.1 (Merchandise/Services Not Received). Which document would MOST effectively rebut this dispute?
- Signed delivery confirmation from a major carrier showing delivery to the cardholder's address (Correct answer)
- A screenshot of the product listing page at time of sale
- The merchant's refund policy posted on the website
- A copy of the original sales receipt showing the transaction amount
Correct answer: Signed delivery confirmation from a major carrier showing delivery to the cardholder's address
Signed proof of delivery showing the cardholder's address received the goods is the strongest evidence to rebut a 'not received' chargeback.
Question 2: Under Mastercard's dispute resolution framework, what is the maximum number of days an issuer has to file a chargeback after the transaction processing date for most dispute categories?
- 60 days
- 90 days
- 120 days (Correct answer)
- 180 days
Correct answer: 120 days
Mastercard generally allows issuers 120 days from the transaction processing date to file a chargeback for most dispute reason codes.
Question 3: A customer claims they returned merchandise but the merchant disputes receiving it. This scenario BEST describes which chargeback condition?
- Credit not processed (Correct answer)
- Not as described
- Merchandise not received
- Unauthorized transaction
Correct answer: Credit not processed
When a customer has returned goods and a credit has not been issued, the appropriate chargeback reason is 'credit not processed.'
Question 4: During the pre-arbitration phase of a Visa dispute, the issuer rejects the merchant's representment. What is the merchant's NEXT available step?
- File for arbitration with Visa (Correct answer)
- Accept the chargeback and move on
- Submit a second representment with additional evidence
- Escalate directly to law enforcement
Correct answer: File for arbitration with Visa
If pre-arbitration is rejected, the acquiring bank may escalate to formal Visa arbitration for a binding ruling.
Question 5: Which metric BEST measures the financial impact of chargebacks on a merchant relative to their overall sales volume?
- Chargeback-to-transaction ratio (Correct answer)
- Average chargeback amount
- Dispute win rate
- Refund rate
Correct answer: Chargeback-to-transaction ratio
The chargeback-to-transaction ratio (total chargebacks divided by total transactions) is the primary metric card networks use to monitor merchant chargeback performance.
Question 6: A cardholder files a dispute 95 days after a transaction, claiming the service was not as described. Under Visa's rules, which outcome is MOST likely?
- The issuer cannot file the chargeback because the dispute window has expired (Correct answer)
- The issuer can file under a different reason code to extend the window
- Visa allows an extended 180-day window for 'not as described' disputes
- The merchant must automatically accept the chargeback
Correct answer: The issuer cannot file the chargeback because the dispute window has expired
Visa's standard dispute window is 120 days from the transaction date or expected delivery date, and a filing at 95 days would still be within that window; however, if the 120-day limit had passed, the chargeback would be time-barred.
Question 7: In the context of chargeback fraud prevention, what does 'order velocity monitoring' refer to?
- Tracking the number of orders placed by the same customer or card within a short time period (Correct answer)
- Measuring the speed at which chargebacks are processed by the issuer
- Monitoring how quickly merchants respond to dispute notifications
- Analyzing the average dollar amount of disputed transactions
Correct answer: Tracking the number of orders placed by the same customer or card within a short time period
Order velocity monitoring detects suspicious patterns where the same card or customer places multiple orders rapidly, a common indicator of fraudulent activity.
APRP Chargebacks & Dispute Resolution 4
A merchant receives a chargeback under Visa reason code 13.1 (Merchandise/Services Not Received).
Which document would MOST effectively rebut this dispute?