Chargeback Protection Policy
NoFraud will be reimburse customers for any fraudulent chargebacks from transactions that NoFraud deemed to be legitimate, i.e. the NoFraud response was Pass.
Chargeback Protection rates start at:
- 0.45% for delivered goods.
- 1% on digital goods.
- Maximum coverage of $5,000 per transaction. Any transaction over $5,000 will still be insured for $5,000. Ex: a $6,000 transaction will be insured and billed for $5,000.
- International orders are subject to an additional 0.20% fee.
- For delivered goods, all orders must have proof of delivery in order to be eligible for chargeback protection.
- We reserve the right to adjust the chargeback protection rate. We will provide you with 14 days notice.
What is Covered:
- 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. This is another common fraud tactic: fraudsters will process the order to the address linked to the card, have it pass fraud review, call up customer service or even the shipping carrier to change the address to their homes or a forwarding company. Please ensure that your customer service team is trained to tell customers that would like to change their shipping address to cancel their order and create a new one on your website. Your shipping carrier should be advised that you do not allow 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.
- 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 and signature (if applicable)
- 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 your behalf to dispute chargebacks. Failure to do so will 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 pay all associated fees.
- Coverage on non-credit card transactions (ex: Amazon Payments, PayPal Express) requires prior approval from NoFraud. PayPal Guest Checkout transactions are not covered.
Chargeback Reasons Codes:
Fraud (Card Not Present) / No cardholder authorization
- Code #83
- Code #63
- Code #UA02
- Code #7030
Transaction not recognized
- Code #75
- Code #37
- Code #AA
- Code #7030