Definition: What this fraud dispute means is that an invalid card holder signature has been obtained during the course of a swiped card or face-to-face transaction. This either means that the card in question was used fraudulently, or that the signature was made fraudulently by the merchant.

Explanation: Swiped transaction, signature is not the same.

How to prevent this Chargeback: In order to prevent this type of fraud dispute from escalating into a chargeback request, you must be able to prove that the signature on your sales receipt was made either by the card holder, or by someone who was authorized by the card holder to use the card in question and that the signature was not placed on the sales document fraudulently.

How to resolve this Chargeback: In order to resolve this type of chargeback, you must be able to provide a written statement of rebuttal along with any supportive documents which show that the signature on the sales receipt is valid, or you must be able to provide proof that the card holder received the services or goods that were paid for in the course of the transaction in question.

Tips: To protect the safety of your business and each and every one of your customers, it would be wise to make sure that a signature is received from every one who pays using a credit card. You should check this signature against the signature on the back of the credit card in question, and you should check identification for the card holder as well. This chargeback can be avoided simply by obtaining a signed sales receipt in order to prove authorization by the card holder.

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