After almost 10 years in business with less than 1 chargeback per year, we just had two chargebacks (from the same bank/customer).
The claim was that we did not enter the authorization code when the charge went through (that customer got from the bank and gave out verbally).
We *did* get authorization codes both times, it was captured, bank sent "transaction approved", and our transaction record shows both the authorization number and the "transaction approved" response.
After we received the chargeback notices (about 1.5 months after the fact), I filed (faxed) rebuttals with all the necessary information with Intuitive Merchant Solutions.
This is where the circus started.
First, when I called them about a week later, a rep claimed that they never received the faxes. She gave me her name and fax number to fax everything over again. I faxed it over again.
Called a few days later, and another rep couldn't find one of the rebuttals AGAIN. After I gave the name and fax number I sent the info to the second time, the story changed.
Rep claimed that both of the chargebacks stand, and gave a fairly outlandish explanation -
-First chargeback stands because we tried to run the charge several times before we run it with authorization code - didn't know one was needed until later. Now, all those times the transaction was DECLINED, and the one time it actually went through was WITH the valid authorization code, as captured in the report.
-Second chargeback stands because we didn't actually charge the card!! For some reason, unfathomable by me, the Quickbooks interface only marked a "ticket" the second time, did not actually charge the card. (We did everything the same as hundreds of other times...) It didn't matter that we had the authorization code, or even that the charge didn't actually exist!
So, in summary- chargeback reason given was code 4808 - Requested/required autorization not obtained. We did have authorization code, and were able to prove it.
When we did, Innovative gave me different reasons of upholding the chargebacks, one of them being that card was declined several times (no charge was made), and the other that only the ticket was run (no charge was made). So, we have two chargebacks for charges that according to them didn't happen in the first place?!
I'm about to try to get to a higer-up on the food chain in this company. I'm not so upset about the lost money, or even the fee charged by Intuitive for each one, but I'm really furious about having 2 chargebacks we didn't earn on our record!
San Francisco, California