Chargeback Protection – NoFraud Chargeback Guarantee Policy

1. CHARGEBACK GUARANTEE POLICY OVERVIEW

1.1 SCOPE

The Chargeback Guarantee applies solely to transactions:

• Received, screened, and passed (Pass decision) by NoFraud,
• Meeting all criteria outlined in this policy (Qualified Transactions), and
• Not specifically excluded under Section 1.14 (Exclusions).

Merchants will receive a “Credit Amount” (defined below) for Qualified Transactions when payment card issuers issue chargebacks for fraud or unauthorized charges, such as:

• Ecommerce transactions
• Phone orders authenticated and approved by NoFraud

1.2 QUALIFIED TRANSACTIONS DEFINED

To be considered a Qualified Transaction, the transaction must:

• Be screened by NoFraud and receive a Pass decision from NoFraud
• Be subject only to eligible chargeback reason codes for card-not-present fraud, listed below

Eligible Chargeback Reason Codes:

Reason Code	Definition
10.5 (1050)	(Visa) Card-not-present fraud
10.4 (1040)	(Visa) Card-not-present fraud
F24	(Amex) No cardmember authorization
F29	(Amex) Card-not-present fraud
UA02 (7030)	(Discover) Card-not-present fraud
4752	(Discover) Not recognized/not authorized
AA	(Discover) Does not recognize
4837 (37)	(MasterCard) No cardholder authorization
4863 (63)	(MasterCard) Cardholder does not recognize
Fraudulent	(Stripe/Shopify Payments) Card-not-present fraud
Unauthorized Transaction	PayPal

1.3 REQUIRED DATA AND CONDITIONS FOR QUALIFICATION

Merchants must provide NoFraud the following critical information at the time of transaction screening (and other fields as reasonably determined by NoFraud):

• Customer’s IP address (Merchant IPs sent on behalf of Customer are not acceptable)
• Transaction amount, including shipping costs
• Invoice number
• Complete billing and shipping address (for physical goods)
• List of any physical goods ordered
• Customer’s information including though not limited to: email, phone, device ID (JavaScript ID)

Additional Conditions:

• Merchant Descriptor: Must match the transaction website name.
• NoFraud Device JavaScript: Must be fully operational during transaction screening.
• Integration Status: Transactions must be processed via a NoFraud integration that is in Live mode.

1.4 DIGITAL GOODS REQUIREMENTS

Digital Goods are delivered electronically (e.g., gift cards, digital media, subscriptions).

• Digital transactions exceeding 10% of Merchant’s sales require prior written approval from NoFraud.
• Merchants must indicate digital transactions at screening time by:
  • Classifying as gift card/digital or 
  • Providing no shipping data for the transaction
• Proof of delivery is required via confirmation email to the Customer, download proof, or, in the case of gift cards, proof the gift card was redeemed and the associated order fulfilled.
  • Unused/cancellable gift cards are not eligible for reimbursement.
  • Proof the gift card was redeemed must be provided, as well as any available proof the associated order was fulfilled.

1.5 BUY ONLINE, PICKUP IN-STORE (BOPIS) TRANSACTIONS

Eligibility: 

• Store address is listed as the shipping address, or
• Shipping address fields are blank and shipping method is listed as in-store pickup.

Verification Requirements:

• Verify order confirmation or sales receipt
• Verify photo ID and payment card used to place the order
• Verify last 4-digits of payment card against those listed on receipt

Claim Submission Requirements:

• Official sales invoice with full Customer and order details including but not limited to:
  • Customer name,
  • Order date, 
  • Payment information (BIN and/or last 4-digits of the card),
  • Billing address,
  • Delivery address as in-store pickup address OR shipping method listed as in-store pickup,
  • Ordered items, and
  • Inventory
• Signature (confirming the person receiving the merchandise and the date and time received)

1.6 REIMBURSEMENT OF CREDIT AMOUNT

NoFraud issues reimbursement in the form of a credit to be used towards future NoFraud services (“Credit Amount”) equal to the disputed chargeback amount within 30 days after eligibility determination.

Reimbursement conditions:

• Provided only as credits to Merchant’s NoFraud account (for the avoidance of doubt, credits will be applied to the Merchant’s account and are not intended to be cash or legal tender).
• Merchant must submit a reimbursement claim upon receipt of chargeback notification and at least 7 business days before response is due.
  • Must provide all relevant chargeback documentation and resolution details.
  • Proof Of Delivery: For any goods that have been physically delivered, Merchant must provide NoFraud written or electronic proof goods were delivered in accordance with the terms of the applicable transaction.
• Merchant’s account must be active to submit for reimbursement of and be eligible to receive the Credit Amount.

Note: Credit is non-transferable and non-redeemable. Credits will expire the earlier of 6 months from the time of last account activity or contract expiration / cancellation.

1.7 MERCHANT RESPONSIBILITIES & PERMISSIONS

Submitting a Chargeback to NoFraud

• Chargebacks must be submitted via automation (e.g. Shopify app integration) or manually uploaded through portal.nofraud.com. When submitting a request, the following must be provided:
  • A copy of the chargeback notification,
  • Proof of delivery of goods (acceptable forms of proof include carrier tracking information that confirms delivery to the shipping address and/or signature confirmation documentation), and
  • Any other available information related to the chargeback.
• It is the Merchant’s responsibility to ensure chargebacks are uploaded successfully and accurately, via automation or manually.
• Merchant must authorize NoFraud electronically to respond to chargebacks with payment processors, merchant portals and other necessary third-party platforms (for example, sub-user access or login credentials to a payment processor).
• Merchant must not independently respond to chargebacks for Qualified Transactions.
• Merchant must provide NoFraud continuous updates on dispute resolutions via online access (preferred) or via NoFraud’s monthly reporting program.

1.8 INVOICING FOR WON DISPUTES

If NoFraud credits Merchant for a Qualified Transaction, and the dispute is later won, Merchant will be invoiced for and owes the Credit Amount to NoFraud. Merchant must inform NoFraud immediately upon receiving dispute resolution.

1.9 DIRECT CREDITS TO MERCHANT

If chargeback amounts disputed by NoFraud are returned directly to Merchant (e.g., customer cancels chargeback), Merchant must promptly repay NoFraud based on the invoice provided by NoFraud for any previously credited amounts.

1.10 SECOND CHARGEBACK NOTICE

If a second chargeback or pre-arbitration occurs, Merchant must submit a new chargeback request to NoFraud by emailing cbs@nofraud.com.

1.11 NOFRAUD RELIANCE ON MERCHANT INFORMATION

NoFraud has priced this NoFraud Protection Service with Chargeback Guarantee based on the Merchant’s representations as to: transaction volume, average order value, product mix, sales channels, payment types, platforms, policies, countries/regions, chargeback history, and other relevant representations. 

• Merchant agrees to proactively communicate to NoFraud in advance through email any significant changes in transaction characteristics that could materially affect risk.
• NoFraud reserves the right, following NoFraud’s reasonable determination of material change, to provide electronic notice to Merchant of an adjustment to the pricing or service (e.g. providing the NoFraud Protection Service without the Chargeback Guarantee) based on the changes, with such new pricing or service effective 15 days from the notice.
• Merchant Choices within the 15 day period: (1) Merchant may choose to terminate its order for NoFraud Protection Service with Chargeback Guarantee upon electronic notice received by NoFraud within such 15 day period, or, (2) if no such notice is received by NoFraud during such time period, then the new pricing and service will take effect at the end of the 15 day period.

1.12 SUBSEQUENT INFORMATION AFFECTING DECISIONS

If new information indicates potential fraud after a Pass decision, Merchant must cooperate with NoFraud to mitigate potential losses (for example, cancelling an unfulfilled transaction, holding an item before shipping, or attempting in good faith to intercept a shipment). Fulfillment after NoFraud has sent a fraud alert from NoFraud voids eligibility for the Chargeback Guarantee.

1.13 MISUSE OF MANUAL TRANSACTION CANCELLATION

If the Merchant manually cancels the Chargeback Guarantee after screening but fulfills the transaction, Merchant is still obligated to pay the associated fee.

1.14 EXCLUSIONS

The Chargeback Guarantee does not apply to:

• Transactions placed via telephone without using the NoFraud Phone Screening function
• Items delivered to locations other than specified on the original transaction, whether due to errors made by Merchant, a shipping company, or upon request from Merchant’s customer to ship to an alternate location
• Items under a transaction that have not been delivered
• Items under a transaction without proof of delivery
• Transactions for which NoFraud does not screen or a Merchant makes its own screening decision for the transaction (for example, through a Custom Override, such as an Allowlist entry or Advanced Rules feature)
• Transactions screened after chargeback initiation or beyond 2 days from order placement
• Chargebacks resulting from integration, Merchant, Customer, card issuer, processor, common carrier, or shipping company errors, including without limitations, duplicate charges, unprocessed refunds, non-conforming goods or failure to deliver the goods, and defective goods
• Transactions for which NoFraud has not been provided all critical data fields to verify authenticity, including though not limited to instances in which Customer’s data has been deleted in compliance with a request by Merchant or Customer
• Items that have been recovered and returned to Merchant
• Chargebacks from transactions that NoFraud assigned the status of Review that later resulted in a status of Fail or Fraudulent
• Transactions screened during any period of time when Merchant’s account is more than 30 days past due in fees owed to NoFraud for any of its services.

Ver. 2.0  June 26, 2025.

Prior Version