Chargeback Protection Policy

Updated January 11, 2022

1.  CHARGEBACK PROTECTION POLICY. If you are entitled to receive NoFraud’s Chargeback Guaranty, then for the period of time you are entitled to receive such Chargeback Guaranty, it will be provided to you strictly in accordance with this Chargeback Protection Policy.

1.1 Scope. Subject to the satisfaction of all of the Conditions (as defined herein), you shall be entitled to receive the Credit Amount (as defined below) from NoFraud for any chargebacks imposed on you by any payment cards issuer resulting from fraud or unauthorized charges by your customers (the “Chargeback Protection”) who have completed (i) an e-commerce transaction or (ii) a phone order, in each case, authenticated and approved by NoFraud in accordance with its procedures (as amended, supplemented or modified from time to time) (a “Qualified Transaction”). Chargeback Protection only covers transactions received, screened, and marked in the NoFraud portal as a Pass.

For the avoidance of doubt, transactions where the payment card is present or that are otherwise categorized as a card-present transactions are not Qualified Transactions and are not eligible for Chargeback Protection.

1.2 The Credit Amount. To the extent that NoFraud determines that the Conditions for the Chargeback Protections have been satisfied, you shall be entitled to receive from NoFraud a credit in the amount subject to chargeback by a payment card issuer (the “Credit Amount”) within 30 days of NoFraud’s determination that you are entitled thereto, capped at the amount set forth in your Order Form.  If no such cap is set forth in your Order Form, Credit Amounts shall be capped at $5,000 per transaction.  Set forth below are the sole chargeback reason codes pursuant to which you may be eligible for Chargeback Protection, subject to all of the terms and conditions contained herein.  All amounts that Client is entitled to receive under the Chargeback Protection Policy shall be provided in the form of a credit to your account.

Eligible Chargeback Reason Codes

Notwithstanding anything to the contrary herein or otherwise, chargebacks that do not fall under an eligible code shall not be eligible to receive a Credit Amount.  Eligible codes are limited to the following.  Only fraudulent or unauthorized charges shall be eligible for a Credit Amount.

Fraud (Card Not Present)/No Cardholder Authorization

  • Code #10.4
  • Code #10.5
  • Code #F24
  • Code #F29
  • Code #UA02
  • Code #7030
  • Code #4837 / #37

Transaction Not Recognized

  • Code #4863 / #63
  • Code #AA
  • Code #4752

1.3 Conditions. In order to be entitled to the Credit Amount, all of the following conditions (the “Conditions”) must be satisfied, as may be determined in NoFraud’s absolute discretion.

1.3.1 You shall have elected to activate Chargeback Protection either by executing an order form therefor or opting to use the Chargeback Protection feature via the NoFraud software, it being understood that, you may request to terminate the Chargeback Protection services at any time for any reason and it being further understood that if you activate the Chargeback Protection by using the Chargeback Protection feature via the NoFraud software, NoFraud may charge an additional fee, due immediately at the time the Chargeback Protection feature is so activated;

1.3.2 To the extent that you request a reimbursement of the Credit Amount for any sale of goods that have been physically delivered, you shall submit to NoFraud satisfactory evidence that such goods shall have been delivered in accordance with the terms of the applicable order;

1.3.3 You shall have provided NoFraud the following information, in form and substance satisfactory to NoFraud: all critical data fields for the Qualified Transaction for which a reimbursement of Credit Amount shall have been requested, including, without limitation, your customer’s IP address, the Qualified Transaction amounts, shipping costs, invoice number, full and complete billing address, shipping information of your customer for physical goods, list of any physical goods ordered, personally identifiable information such as phone numbers, email addresses, and device IDs (device JavaScript IDs);

1.3.4 You must provide all of your payment card transactions on your e-commerce websites to be serviced by NoFraud. That is, you may not select any subset of your transactions in connection with your e-commerce websites to be excluded from being served by NoFraud;

1.3.5 You have complied with the policies and procedures set forth in this Section 1.3;

1.3.6 You are otherwise in full compliance, and no event of default or potential event of default shall have occurred and is continuing, with respect to any agreement entered into between you and NoFraud;

1.3.7 You have given authorization to NoFraud to communicate with the payment processor and otherwise access the applicable merchant portals and other third-party platforms on your behalf to dispute chargebacks. NoFraud must be permitted to dispute chargebacks on your behalf.  If you fail to give such authorization or if you disputes a chargeback yourself, such action shall disqualify the transaction from Chargeback Protection; and

1.3.8 You have correctly installed and integrated the necessary NoFraud software and/or software calls with your e-commerce channel, including but not limited to any Javascript provided by NoFraud;

1.3.9 Upon resolution of a chargeback claim or dispute, you must deliver a resolution copy within 7 calendar days;

1.3.10 If you are using a Content Delivery Network (CDN) or another form of proxy, you must ensure that you are sending your customer’s IP address to NoFraud and not that of the CDN/Proxy.  Your customer’s IP is a critical field, and any issue with your customer IP address shall make Chargeback Protection unavailable for the relevant transaction;

1.3.11 Your account must be on “live” mode (not test mode) to be eligible for Chargeback Protection;; and

1.3.12 Orders with a total of $2000 or more (including all taxes and shipping charges) shall not be eligible for Chargeback Protection unless a signature of the recipient is required and received upon delivery.

1.3.13 Chargeback Protection includes the ability to cancel transactions that are unfulfilled.  Cancelling of transactions that are not unfulfilled shall be considered the misrepresentation of material information.

1.3.14 You must not misrepresent any material information, which may include the submission of incorrect volumes.

1.3.15 Chargeback Protection is not available for purchases of digital goods absent the express prior written approval of NoFraud. Such digital goods shall include, but not be limited to, gift cards, digital media, and online subscription fees. Please contact NoFraud for more details.   

If such express prior approval has been provided by NoFraud, then Chargeback Protection on purchases of such digital goods shall be subject to:  a.) no shipping data being provided by you in connection with the purchase; and b.) no physical items being combined in the same order with the digital goods. 

1.3.16 If NoFraud obtains additional information that indicates a transaction is fraudulent after the goods have been shipped, NoFraud will request that you intercept the package before delivery. NoFraud will cover the associated fees unless you do not make a good faith effort to intercept such package. 

1.3.17 No Credit Amount will be due where NoFraud disputes a chargeback on your behalf and the chargeback value is returned directly to you.

1.4 Exclusions. The following shall be expressly excluded from Chargeback Protection and no credit of the Credit Amount shall occur in such instances.  The following is a non-exclusive list.

1.4.1 Orders placed via telephone without using the NoFraud Phone Screening function;

1.4.2 Goods that have been delivered to a location other than the location specified on the original purchase order, whether due to errors made by you, a shipping company or based on the request from your customer to ship to an alternative location;

1.4.3 Orders that have not been delivered;

1.4.4 Orders without proof of delivery;

1.4.5 Chargebacks from a transaction that was on your allow list;

1.4.6 Chargebacks resulting from any errors made by you, your customers, card issuers or processors, or common carriers or shipping companies, including without limitations, duplicate charges, unprocessed refunds, non-conforming goods or failure to deliver the goods, and defective goods;

1.4.7 Goods that have been recovered and have been returned to  you;

1.4.8 Chargebacks from a transaction that NoFraud did not screen;

1.4.9 Chargebacks due to an integration error;

1.4.10 Transactions screened while using NoFraud’s test mode or while NoFraud’s software and services are not otherwise not fully active;

1.4.11 Transactions on which NoFraud requested that the package be intercepted before delivery and you did not make a good faith effort to intercept such package;

1.4.12 Chargebacks disputed by you and not by NoFraud;

1.4.13 Any instance where the chargeback amount has already been received by you or your customer, even if not paid by NoFraud;

1.4.14 Any instance where your customer’s data has been deleted in compliance with a request by you or your customer;

1.4.15 Chargebacks for which NoFraud was not provided access to your processor to dispute the chargeback on your behalf;

1.4.16 Chargebacks from transactions that NoFraud assigned the status of “Review” that later resulted in a status of “Fail” or “Fraudulent”;

1.4.17 Transactions for which NoFraud has not been provided all critical data fields to verify authenticity;

1.4.18 Transactions occurring more than 2 days from the date the order was placed; and

1.4.19 Transactions screened after a chargeback has been initiated thereon.

1.5 Chargeback Protection Process. In order to be eligible to claim the Credit Amount, you shall submit any request for the Credit Amount no more than seven (7) days after you shall have been notified of the chargeback and no less than four (4) business days before the chargeback response is due.  In addition, you shall submit any and all correspondence related thereto, including without limitation, a copy of the chargeback notification, proof of delivery and/or signature (as applicable to vendor based on stated vendor policy) and any other material information related to the Qualified Transaction and the chargeback. Once the chargeback dispute has been resolved by the  card issuer, you shall immediately inform NoFraud and provide a copy of the resolution.  Failure to submit the request in time or to submit all required documentation shall result in rejection of the chargeback reimbursement request.  

Chargebacks may be submitted via the NoFraud portal.  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. Orders over $2,000 require a signature confirmation for Chargeback Protection eligibility.
  • Any other available information related to the chargeback

1.6 Alternate Payment. If your customer offers NoFraud payment in an alternate form (an “Alternate Payment”), NoFraud may collect such Alternate Payment at its sole discretion. If NoFraud does collect such Alternate Payment, you will be reimbursed the amount of the payment, minus any fees or penalties assessed on the Alternate Payment.

If NoFraud declines to accept the Alternate Payment and you accept the Alternate Payment instead, NoFraud’s obligations with respect to chargeback amounts shall be satisfied in full and you will not be eligible for Chargeback Protection for such transaction.

1.7 Payment by EFT. Notwithstanding anything to the contrary within the Agreement, in any instance where your customer pays by electronic funds transfer (ETF), the goods or services paid for shall not be released to your customer until the funds remain cleared for not less than five (5) business days. You will provide NoFraud with copies of any checks used for payment with a value of over $500.

1.8 Other Disputes. Notwithstanding anything to the contrary herein, you hereby acknowledge and agree that you shall have no right to dispute any transaction for which the personal data of your customer has been deleted, so long as such deletion was at your request or the request of your customer.

1.9 Invoice for Chargeback Payments Sent to You. In any instance where NoFraud has: a.) paid or otherwise credited amounts resulting from a chargeback claim or dispute to you; and b.) you have received compensation in relation to that same chargeback claim or dispute from a third-party (the “Returned Charges”), NoFraud shall invoice you for, and you shall return to NoFraud, the Credit Amount paid by NoFraud in connection with such claim.

1.10 Merchant Descriptor.  The merchant descriptor (the line of copy that identifies transactions on a cardholder’s account activity and statement) must match the name of the website the transaction took place on.  Failure of the foregoing shall relieve NoFraud of its obligations under this Chargeback ProtectioN Policy.

1.11 Second Chargeback Notice.  Notification of a second chargeback or pre-arbitration shall be submitted as a new dispute.


11.1 BOPIS Terms.  For items bought online and picked up in-store, in order to qualify for Chargeback Protection, the order must meet one of the criteria below.  Otherwise, such orders shall not qualify for Chargeback Protection.

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

11.2 Required Information.  NoFraud shall have no obligation with respect to reimbursement requests and/or claims related to or arising from in-store pickup orders unless you have completed both of the following:

  1. Complete the following steps during pickup (“Pickup Verification”) and provide proof of completion thereof:
    1. Verify order confirmation email or sales receipt
    2. Verify photo ID and payment card used to place the order
    3. Verify last 4-digits of payment card against those listed on receipt
  2. Upon submitting a claim, you will provide a copy of the official sales invoice, along with all other claim requirements, including but not limited to the information below.  No tracking number shall be required for reimbursement requests and/or claims related to in-store pickup orders.: 
    1. Customer name
    2. Order date
    3. Payment information (BIN and/or last 4-digits of the card)
    4. Billing address
    5. Delivery address as in store pickup address OR shipping method listed as in-store pickup
    6. Ordered items
    7. Inventory
    8. Signature (confirming the person receiving the merchandise and the date and time received)

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