![]() ![]() While many banks give their customers 120 days to dispute a charge, Wells Fargo customers only have 60 days, which is the minimum required by the Fair Credit Billing Act. Wells Fargo has lost some market share in recent years because of the fallout from their 2016 account fraud scandal, and while that means they have extra incentive to keep their current customers happy, we would hope that it also motivates them to carefully abide by the card networks’ dispute rules. The networks also state that the merchant must provide compelling evidence in representment to reverse a chargeback, but the issuer gets to decide what evidence qualifies as sufficiently compelling.Īs the seventh-largest credit card issuer in the United States, Wells Fargo handles a lot of chargebacks, so you can expect to be dealing with them fairly often. While the card network rules for chargebacks are fairly thorough, they do still leave a lot of room for interpretation by the issuer.Įach card network has a list of reason codes under which a chargeback may be filed, but it's up to the issuer to determine which reason code, if any, applies to a given cardholder dispute. While changes made by one card network are often copied by the others, each network developed the rules for its process individually, meaning there can be a lot of variation from one network to the next. Most of the chargeback process we now know was created by the major credit card networks. These laws required that card networks and banks establish some sort of chargeback process but provided little detail about what that process should look like. Unfortunately, the chargeback process was not some financial version of Athena, springing fully formed from the head of the U.S. The bank also decides whether any evidence provided is sufficient to reverse the chargeback.Ĭhargebacks were first established for credit cards by the Fair Credit Billing Act of 1974, with chargebacks for debit cards coming with the Electronic Funds Transfer Act of 1978. While the rules and guidelines for the chargeback process are established by the credit card networks, the issuing bank is the one that actually carries it out. Let's take a look at how Wells Fargo handles chargebacks, both on the customer's end and the merchant's. Wells Fargo is one of the largest banks in the United States, which makes it a common adjudicator of credit card disputes. ![]() Unfortuantely, winning these disputes is made more complicated by the fact that each issuing bank has its own preferences when it comes to what evidence they find compelling enough to reverse a chargeback. Doing so not only recovers revenue directly, but also provides valuable insights that can prevent future chargebacks and improve customer retention. In order to minimize lost revenue, it's important for merchants to fight the illegitimate chargebacks they receive. ![]()
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