## Definitions

1. **Chargeback** - A chargeback is when someone pays anopther person via credit card and later contacts their credit card company to claim the charge was fraudulent, or the product/service they paid for was never received. When this occurs it can hurt a business in multiple ways and damage their reputation and standing with their credit card processer.
2. **Reporter** - The business owner who reports that a chargback was performed against them. This means they were the business who got paid and then their money was taken back, they are not always a victim since chargebacks can have valid reasoning.
3. **Offender** - The person or business who performed the chargeback and is having the chargeback reported against them in factiiv by the Reporter.
4. **The Directory** - A list of all businesses that have performed chargebacks with the amount of chargebacks they have been accused of that are currently in a Recorded status.

## Summary

We will be adding a new data type to the factiiv platform called Chargebacks.

We will also be adding a directory of users who have had Chargebacks reported against them and either failed to respond, resolve, or successfully contest the claim.

Chargebacks are similar to a trade type object but with different input fields and they always require documentation.

When a chargeback is reported by a business against an Offender, the offender will have 30 days to to respond.

Options for responding will be:

1. **Contest** - This entails the Offender thinks the chargeback was valid or is claiming it did not happen, they must submit documentation and a reason for contesting the claim.
2. **Resolve** - This entails that the Offender has corrected the issue, they will indicate they have resolved the matter, the Reporter will need to agree that the issue was resolved, in the case that both reporter and offender agree that it is resolved the Chargeback will be dismissed and deleted from the system.
3. **Accept** - When the Offender admits they performed a Chargeback they will have the Chargeback put onto our Chargeback Directory and their account will be flagged to warn future business connections that they have a history of performing Chargebacks.

## Information needed for a chargeback to be submitted

1. MID (this is the transaction number, but is not required field)
2. Name of Company that Charged Back the transaction ( This is the company that disputed the transaction with their credit card company and basically said they did not get the products or services that they paid for and the credit card company just took their word for it and took the money out of the business that provided the product or service)
3. Contact Name of Person at The company did did the chargeback
4. Contact email of the company that did the chargeback
5. Contact Phone number of the company that did the chargeback
6. Transaction Date (the original date that the transaction took place)
7. Dispute Date (this is the date that the dispute was created with the credit card company)
8. Dispute Type (Debited or Credited) / most will be debited, this means that the money was taken out the the merchants account.
9. Dollar Dispute Amount
10. Card Number ending in XXXX (we only need last four of the card number
12. Reason for Chargeback: options as follows
a. The Cardmember denies participation in a mail order, telephone order, or internet Charge.
b. Cardmember claims to have cancelled or attempted to cancel Recurring Billing Charges for goods or services. Please discontinue all future billing for this Recurring Billing Charge.
c. The Cardmember claims that the goods/services ordered were cancelled
d. Cardholder Dispute - Defective/Not as Described - Goods/Service did not conform to their description
e. No Cardholder Authorization - Cardholder does not authorize the transaction
f. Duplicate Transaction - The same transaction was processed more than once
g. Cancelled Merchandise/Services
h. Misrepresentation
i. Merchandise/Services Not Received
j. Other Fraud – Card Absent Environment
k. Duplicate Processing
13. EIN of Offender
14. Comments (other information that may be relevant to the submission)

## Where chargebacks show up for frontend users

1. **Chargebacks page** - This is a new view with a link in the sidebar, it has 3 groups:
a. Report a chargeback - an action with a note below it explaining how reporting a chargeback affects the business you report against by putting them on a directory and showing their Chargeback on their account detail and shared reports.
b. Chargebacks reported against you - a list of itemized chargebacks reported against the current business profile, with status and dates that clicks through to a chargeback detail page where they can take action.
c. Chargebacks reported by you - a list of itemized chargebacks reported by the current business profile against other businesses.
2. **Chargeback detail page** - Where the Offender can take an action to respond, resolve, or accept the reported chargeback.
3. **Business profile** - When another business is viewing a business that has performed chargebacks against other businesses they will see a warning icon next to the business name, when hovered the warning icon will show the number of chargebacks and a tooltip will explain that this business has performed one or more chargebacks that have been substantiated and recorded and to take caution when doing business with them.
4. **Shared reports** - Same as above, also on shared reports.
5. **Chargeback notification** - When a chargeback is submitted against a user they will get a notification with a small icon pulsating red to notify them of the claim.
6. **The Chargebacks directory** - A searchable list of businesses who perform chargebacks with full business information on each, to help other users avoid potentially scammy business interactions.

## Where chargebacks show up for admin users

1. **Chargebacks page** - This is a new view that has a link in the sidebar. It shows an itemized list of ALL chargebacks reported on factiiv. It has a search and filter and when an item is clicked it goes to the chargeback detail for that item.
2. **Chargeback detail page** - This is a new view that shows the detail of an individual chargeback, this is where an admin user can review both sides of a chargeback and make a decision once all sides have submitted their claims, or manually resolve a chargeback if needed. They should see all relevant information submitted about the chargeback, how long ago it was submitted, the current status, and have links to all documentation submitted by both parties.
3. **On the account detail page for all users** - Any chargebacks reported by or against a user should show up itemized in the account detail, when clicked it goes to the chargeback detail for that item.

## Scenarios

The following will discuss how the backend should behave when a chargeback claim is submitted in multiple different situations.

### 1. Chargeback submitted by factiiv user against existing factiiv user (contact)

The chargeback submission form should allow a dropdown to select the existing user. When the chargeback is submitted the Offender should get notified via email and in their factiiv notifications dropdown.

### 2. Chargeback submitted by factiiv user against a business without a factiiv account

The chargeback submission form should allow entry of multiple points of data to identify the exact business which is the offender. When submitted the reporting user should get an email/sharing template of some kind to send to the Offender via email (since factiiv cannot email someone we did not get permission from). The email should invite the user to create a factiiv account to resolve or respond to the claim. As soon as the claim is submitted the offender should also have an account created for them that can be claimed by them later (similar to how we currently handle the creation of accounts when a trade is submitted and the business does not exist yet)

### 3. Chargeback submitted by data provider against existing factiiv user

The chargeback is uploaded via CSV through our data provider portal (coming soon) and the Offender is notified via email and in their factiiv account.

### 4. Chargeback

## Statuses and Getting recorded on the Directory

There are **4 statuses** that a chargeback can be in:

1. Reported - this is a fresh claim that a chargeback occured, no response has been made yet and it is within the 30 day window to respond by the Offender. In this window the Offender's business will NOT show up on the Directory list of Offenders.
2. Responded - this is a chargeback that was claimed and the Offender responded in one way or another
3. Recorded - This is a chargeback that has been reported and was either not responded to within 30 days, accepted, or responded to insufficiently as deemed by a factiiv admin. This is the only status that results in a chargeback showing up on the Directory.
4. Resolved - This is a chargeback that has been either marked resolved by the reporting user, or marked resolved by the Offender and then agreed upon by the Offender.

If an Offender for whatever reason fails to respond within 30 days of the report then the chargeback claim goes into the Recorded status and their business name goes onto the directory.

There is no time limit for when an Offender can respond. And whenever they do respond the entry for that chargeback will be removed from the directory immediately until the case is decided upon by the users or a factiiv admin.

## The Directory

The directory lists all businesses that have performed chargebacks along withg the number of chargebacks currently in the Recorded status. The Directory is visible by all factiiv users and serves as a warning not to do business with certain businesses or individuals.

The directory is searchable by business name. All chargebacks are cumulative against a single business.

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