RM – Cardholder Disputes the Quality of Goods or Services


Reason Code

RM

Category

Service Dispute

DESCRIPTION

Why did I receive this chargeback?

The cardholder claims to have received goods or services that were different from what was offered at the time of the purchase. Or, the cardholder claims to have received goods or services that were damaged, defective, or counterfeit.


TIME LIMIT

How long can the issuer wait to file a chargeback?

For most disputes, the maximum amount of time that can pass between the transaction processing date and the chargeback processing date is 120 calendar days. 

However, the timeline may be extended in certain situations. 

If the issuer first submitted a retrieval request and the retrieval request process finishes after the 120 day deadline, the issuer will have an additional 30 days to file a chargeback.

Also, if the cardholder claims the merchandise is counterfeit, a chargeback can be initiated up to 120 days after the date that the cardholder received notice of counterfeit merchandise (but can not be more than 540 days after the transaction processing date). 

Lastly, if the cardholder claims a misrepresentation of terms, a chargeback can be initiated up to 120 days after the scheduled delivery date (but can not be more than 540 days after the transaction processing date). 


FIGHT

What compelling evidence is needed to respond?

Examples of compelling evidence that you may submit in response to a chargeback with this reason code include:

  • Proof that the cardholder approved the quality of goods or services
  • A signed work order the proves you completed a correction of the quality of goods or services
  • Proof that the cardholder rejected your attempt to correct the quality of goods or services
  • Proof that the cardholder never cancelled or rejected the goods or services and is currently in possession of the merchandise
  • Proof that you resolved the claim with the cardholder directly and the cardholder was satisfied with the outcome
  • Proof that the goods or services provided match what you promised
  • Proof you did not engage in a currency alteration or substitution 
  • Proof you accepted a voucher for payment
  • Proof that the merchandise was not counterfeit
  • Proof the goods or services were provided as described in the terms and proof the cardholder agreed to those terms
  • Letters, emails, photographs, faxes, or other written communications exchanged with the cardholder
  • Receipts, work orders, or other documents signed by the cardholder proving that the cardholder received the goods or services
  • A site-to-store pick-up form signed by the cardholder or a copy of the cardholder’s identification
  • Proof of delivery or other evidence that the goods or services were delivered according to the cardholder’s wishes
  • Confirmation of registration to receive electronic delivery of goods or services
  • Digital usage logs with information such as the cardholder’s email, IP address, date and time of download, description of goods downloaded, and other forms of evidence that prove the receipt of downloaded materials on or after the transaction date
  • Proof that the chargeback is invalid because it doesn’t adhere to Discover’s requirements, particularly those relating to inconvenience claims
  • Proof you have already refunded the transaction and credited the cardholder’s account

PREVENT

How can I avoid this chargeback in the future?

  • Always respond to retrieval requests on time and with the required information. 
  • Make sure all service and merchandise descriptions are complete, accurate, and not misleading.
  • Make sure your fulfillment department is familiar with your merchandise, has a complete understanding of what has been purchased, and knows what to ship.
  • Use the correct size boxes and sufficient packing material so items won’t break in transit.
  • Provide exceptional customer service and promptly acknowledge customers when they make contact.
  • If the cardholder contacts you to resolve the issue, promptly fulfill all valid requests for replacements or refunds.
  • Resolve the issue yourself. Don’t refer the cardholder to the manufacturer instead.
  • Only sell genuine merchandise.

Reason Codes by Brand

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