How to Handle Chargebacks
You’ve received a chargeback notice, what’s next?
Customers can dispute any credit card transaction, whether it occurs inside the store or outside at the pump. When a customer disputes an inside transaction with the financial institution, it results in a chargeback notice that is sent to the merchant. Please note, chargeback notices for outside pump transactions cannot be challenged by the merchant. There are some inside transactions that can be disputed for reasons such as goods and services not provided or defective or not as described merchandise. Below is the Sinclair process for disputing chargebacks:
- Chargeback notice sent to Distributor to forward to Dealer.
- If disputable a retrieval request email will be sent to Distributor to pass on to Dealers.
- The request includes the information needed to dispute the transaction.
- If accepted a chargeback will not be applied.
- The process takes about two weeks.
There are a couple of important steps you can take to help limit your exposure to chargebacks. You can read our previous article on how to limit exposure here. The most important thing you can do to limit your exposure is make sure you have EMV compliant both inside and outside. As a reminder, the deadline for EMV compliance is approaching quickly. If you have not made the necessary upgrades the current level of chargebacks is expected to increase as scammers begin to target sites without EMV equipment. Locations are now responsible for all chargebacks related to non-emv compliance. You can read our previous article on EMV Compliance here.