Chargeback Protection Policy
NoFraud will reimburse customers for any fraudulent chargebacks from transactions that NoFraud deemed to be legitimate, i.e. the NoFraud response was Pass.
What is Covered:
- NoFraud covers chargebacks on orders we received, screened and marked in the NoFraud portal as a Pass.
- NoFraud covers chargebacks due to fraud or unauthorized charges, usually due to stolen account information or stolen card information. Please see Chargeback Reason Code list below.
What is not Covered:
- Phone orders that are placed without using the NoFraud Phone Screening function.
- Instances where the item was shipped to an address other than the shipping address listed on the order. Shipping carriers should be notified to disallow address changes.
- Chargebacks from a transaction that was on the customer whitelist.
- Chargebacks due to errors made by the merchant, card processor, or shipper such as: Duplicate charges, Refunds not processed, Items not delivered, Items not as described, or items defective/broken.
- Orders of delivered goods that have not been delivered.
- Orders without proof of delivery.
- Goods that have been recovered and returned back to the merchant.
- Chargebacks from transactions that NoFraud did not screen.
- Chargebacks due to integration errors.
- Merchant shall receive a NoFraud Rate Agreement with a custom rate.
- International orders are subject to an additional 0.20% fee.
- Refer to Rate Agreement for individual maximum coverage.
- NoFraud reserves the right to adjust the chargeback protection rate. NoFraud will provide you with 14 days notice.
- Chargeback must be submitted within 7 days of merchant’s receipt of notification.
When submitting a chargeback, merchant is responsible to provide the following:
- A copy of the chargeback notification.
- Proof of delivery. Acceptable forms of proof of delivery include carrier tracking information that indicates successful delivery to the shipping address and/or signature confirmation documentation.
- Any other available info related to the chargeback.
- NoFraud must be given authorization to communicate with the payment processor and otherwise access the applicable merchant portals and other third-party platforms on the merchant's behalf to dispute chargebacks. NoFraud will dispute the chargebacks on the merchant's behalf. Failure to give authorization and/or merchants disputing chargebacks on their own may disqualify the transaction from Chargeback Protection Coverage.
- When the chargeback is resolved, the merchant must provide NoFraud with the resolution copy within 7 days.
- The Chargeback Protection rate is based on receiving all credit card transactions from a merchant’s website.
- If the merchant is using a Content Delivery Network (CDN) or another form of proxy, they need to ensure they are sending the customer's IP to NoFraud and not that of the CDN/Proxy. Customer IP is a critical field and lack thereof limits the effectiveness of our verification. It is a mandatory field for Chargeback Protection. The merchant can reach out to their NoFraud Integration Specialist for assistance on this matter if needed.
- Companies selling digital goods will have a waiting period before they are eligible for Chargeback Protection. Please contact NoFraud for more details.
- If at any point in time before a package is delivered, NoFraud gains additional information that a transaction is fraudulent, NoFraud will request from the merchant that they intercept the package before delivery. NoFraud will cover the associated fees in most cases.
- Failure to intercept the package in a timely manner may disqualify the transaction from coverage.
- Coverage on non-credit card transactions (ex: Amazon Payments, PayPal Express) requires prior approval from NoFraud. PayPal Guest Checkout transactions are not covered.
- Account must be on Live mode (not test mode) to be eligible for coverage.
Chargeback Reasons Codes:
Fraud (Card Not Present) / No cardholder authorization
- Code #83
- Code #63
- Code #UA02
- Code #7030
- Code #F24
Transaction not recognized
- Code #75
- Code #37
- Code #AA
- Code #7030