Definition: What this service dispute means is that a card holder is actively challenging the validity of several different automatic payment credit card transactions.

Explanation: Automatic Payments

How to prevent this Chargeback: In order to prevent this type of chargeback from occurring, your best bet is to settle the dispute directly through the card holder by proving the validity of the charges, refunding the invalid charges or providing the services or merchandise that was paid for but not received. If you cannot prove the validity of the charges to the card holder, they may escalate the situation into a chargeback request.

How to resolve this Chargeback: In order to resolve this type of chargeback, you must be able to provide proof of the validity for each of the charges that is being challenged by providing signed sales receipts, proof that the merchandise or services were received, or proof of a refund on any charges which cannot be proved to be valid.

Tips: If it is normal for you to make periodic automatic charges to the account of a card holder, make sure that the card holder understands this. If you have a written policy stating such, provide it to the customer and the situation will likely be resolved. If there is no reason for the payments to be made this way or if you do not have a written policy detailing their purpose, issuing a credit may be the best way to resolve the dispute.

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