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 customer, 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 customer.
  • Chargebacks from transactions that NoFraud did not screen.
  • Chargebacks due to integration errors.
  • Chargebacks that NoFraud disputed on the customer's behalf, won and the chargeback amount was returned to the customer.
  • Chargebacks from transactions that were under the status of "Review" that later resulted in a status of "Fail" or "Fraudulent".

Pricing Details

  • Customer 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. Default maximum coverage is $5,000/transaction.
  • NoFraud reserves the right to adjust the chargeback protection rate. NoFraud will provide you with 14 days notice.

Chargeback process:

  • Chargeback must be submitted within 7 days of customer’s receipt of notification.
  • When submitting a chargeback, customer 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 information related to the chargeback.
  • NoFraud must be given authorization to communicate with the payment processor and otherwise access the applicable customer portals and other third-party platforms on the customer's behalf to dispute chargebacks. NoFraud will dispute the chargebacks on the customer's behalf. Failure to give authorization and/or customers disputing chargebacks on their own will disqualify the transaction from Chargeback Protection Coverage.
  • When the chargeback is resolved, the customer must provide NoFraud with the resolution copy within 7 days.

Please Note:

  • Notwithstanding anything to the contrary herein, Chargeback Protection shall only be provided for those Qualified Transactions for which you have provided NoFraud all critical data fields, in a form and substance satisfactory to NoFraud, including but not limited to: a.) customer IP address, b.) transaction total value, c.) invoice number, d.) billing address (street, state, zip, city, country), e.) shipping information (list of tangible goods and destination address information), f.) phone number, g.) email address, h.) device ID (including device JavaScript ID), and i.) shipping cost(s).
  • The Chargeback Protection rate is based on receiving all credit card transactions from a customer’s website.
  • Orders over $1,000 require signature confirmation for chargeback protection eligibility.
  • If the customer 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 customer 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 customer 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.
  • PayPal Guest Checkout transactions are not covered.
  • If a customer pays by check, the goods cannot be released until the check is received and cleared for five days. NoFraud will need a copy of all checks over $500.

Chargeback Reasons Codes:

  • Fraud (Card Not Present) / No Cardholder Authorization
    • Code #10.4
    • Code #37
    • Code #F24
    • Code #F29
    • Code #UA02
    • Code #7030
  • Transaction Not Recognized
    • Code #63
    • Code #AA