Common Reasons for Chargebacks:

• Fraudulent Transactions: Unauthorized use of a card.
• Product/Service Not Received: The customer did not receive the purchased item or service.
• Defective/Not as Described: The product received was damaged or significantly different from what was described.
• Duplicate Processing: The customer was charged multiple times for the same transaction.
• Credit Not Processed: The customer was not issued a refund after a return.

Understanding and managing chargebacks is crucial for maintaining a healthy business. Follow these guidelines to effectively handle disputes and minimize the occurrence of chargebacks.

A Sales invoice should always contain the below details,

• Merchant’s Name/Website name, City & State
• Contact number
• Transaction and Shipping dates
• Transaction Amount/Charged amount
• "Ship To" Address for Mail/Phone Orders
• Approval Number/Code
• Cardholder Name
• Description of Merchandise

Best Practices to Prevent Chargebacks

• Accurate Descriptions: Ensure product/service descriptions are accurate and clear.
• Prompt Communication: Respond quickly to customer inquiries and complaints.
• Clear Refund Policy: Clearly state your refund policy on your website and adhere to it.
• Secure Payment Processing: Implement robust security measures to prevent fraud.
• Detailed Records: Keep detailed records of transactions and communications.

RESPONSIBILITIES OF A MERCHANT

TRANSPARENCY AND COMMUNICATION:

• Clear Return & Refund Policies: Make your return, refund, and cancellation policies easily accessible on your website. Clearly outline timelines, conditions, and procedures for returns and refunds.
• Order Confirmations: Send order confirmations to customers with details like product descriptions, pricing, and expected delivery dates. This reduces confusion and potential disputes.
• Accurate Billing Descriptors: Use clear and recognizable business names on customer credit card statements. This helps customers identify legitimate transactions.

CUSTOMER SERVICE:

• Responsive Support: Offer multiple channels for customer service, including phone, email, and live chat. Respond promptly and professionally to inquiries and complaints.
• Work with Customers: Strive to resolve customer issues promptly and fairly. This can often prevent them from filing a chargeback in frustration.
• Track Interactions: Maintain detailed records of all customer interactions, including emails, phone calls, and chat transcripts. This documentation can be crucial in defending against chargebacks.

SECURITY AND FRAUD PREVENTION:

• Fraud Detection Tools: Foloosi implements fraud detection tools that analyze transactions for suspicious activity. These tools can help identify and block fraudulent transactions before they occur. Note: These tools will be implemented as per merchant request.

ORDER PROCESSING AND INVENTORY MANAGEMENT:

• Accurate Inventory: Maintain accurate inventory levels and update your website accordingly. This prevents customers from ordering out-of-stock items and potential disputes later.
• Clear Shipping Information: Provide clear and realistic information about shipping times and costs. Avoid unexpected delays that could lead to customer dissatisfaction.
• Prompt Order Fulfillment: Process and ship orders promptly to meet customer expectations. Delays can lead to frustration and potential chargebacks.

ADDITIONAL MEASURES:

• Offer Proof of Delivery: For high-value items, consider obtaining signed delivery receipts or using trackable shipping options. This provides documentation in case of disputes about delivery.
• Invoice: The Invoice should be furnished with the default currency (AED).

PRODUCT/SERVICE INFORMATION:

• Product Description: Detailed Description of the Product(s) or Service(s) Purchased
• Product Images: Images of the product which was shipped and at the time of delivery
• Pricing Information: Breakdown of Itemized Costs, Delivery charges, Currency conversion charges and any Applicable Taxes or Fees

ORDER CONFIRMATION AND COMMUNICATION:

• Order Confirmation Email: Copy of the Order Confirmation Email Sent to the Customer. 
• In the transaction confirmation mail sent to the customer, the details of the split payments have to be included (actual transaction amount, amount split, date and time of the booking and the transactions, last digits of the card against the split transactions, transaction IDs of the transactions etc). The merchant also has to check with the customer regarding the split payments and then document all the communication in the process. 
• Customer Communication: Copies of Any Emails, Chats, or Call Transcripts Related to the Order
• Follow up communication if the date of delivery or the usage of the service is after a time interval 
• If there is any extra amount charged to the customer, it needs to be detailed in the Invoice and in the further communication which happens between the merchant and the customer.
• It is recommended to initiate a follow up communication with the booking customer so that the transaction can be validated and the redemption of service can be ensured.
• All the communication with the customer has to be recorded.

SHIPPING DOCUMENTATION:

• Shipping Confirmation: Copy of the Shipping Confirmation with Tracking Information
• Proof of Delivery (Optional): Copy of Signed Delivery Receipt
• Proof of the collection: Collect the proof at the time of delivery

RETURN/REFUND/CANCELLATION POLICY:

• Link to Return & Refund Policy: Always include a link to the refund/return/cancellation/no show policy. Cancellation/Refund policy has to be displayed in the website mentioning all the scenarios, cancellation within certain days from the day of booking to the day of redemption of the services, type of refunds (full, partial and no refund) based on the days within which the cancellation is initiated, no show etc.
• During the booking time, ideally a mail should be sent to the registered email address of the customer mentioning the policies (Refund, Cancellation etc) in a PDF or readable format.
• It is also advisable to take into consideration the cancellation and refund policy of the merchant and get it acknowledged by the customer during the booking time itself. This can be done via a digital signature on the T&C page or a wet signature on the printed document (if the booking is done at the store).

This structured format provides merchants with a comprehensive overview of the chargeback process, from understanding what chargebacks are to responding and preventing them. The guidelines emphasize the importance of timely responses, accurate documentation, and proactive measures to prevent chargebacks.