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GSA SmartPay Conference Disputes: Resolution without Delay Civilian Heelay Yaftali Vice President, Citi ® 11th Annual GSA SmartPay Conference Phoenix, Arizona July 28th - July 30th, 2009 ® Disputes: Resolution without Delay House Rules To ensure the best possible learning experience for participants, please adhere to the following house rules: • • • Turn cell phones and pagers to vibrate Hold questions to end of session Must be scanned to receive CLP credits • Unanswered Questions − For each course − Q-Cards & Ballot Boxes − Answer to be emailed after the conference - within 45 days ® Disputes: Resolutions without Delay Goals & Objectives This session is designed to assist you in achieving the following goals: • Provide an overview and outline of the dispute process • Provide tools and information to educate your cardholders • Facilitate more timely and effective dispute resolutions ® Agenda 1. Defining a Dispute 2. Dispute Process 3. CitiDirect® Card Management System Benefits 4. Ensuring a Successful Dispute Process 5. Dispute Resolution 6. Cardholder Tips ® 1. Defining a Dispute ® Defining Disputes What is a Dispute? Association Definition: A transaction amount that the cardholder believes should be returned in full or in part to the merchant. – A dispute is the first step in the process to return a charge to the merchant’s bank – It may be determined for a given reason that all or part of the charge amount could be charged back to the merchant bank Common Reasons for a Dispute: – A charge on statement that cardholder does not remember making – Difference in amount – Duplicate charges – Canceled or returned merchandise ® 2. Dispute Process ® Dispute Process Understanding the Basics Who are the players? – Visa & MasterCard – the card associations – Card Issuers – Merchants – Card Acquirers – Cardholders Who sets the guidelines? ® Dispute Process Quick Facts & Tips for Cardholders Cardholder MUST notify the issuer of dispute within 60 days from statement date on which transaction appears Cardholders should carefully review their statements every month Cardholders should retain all receipts and other transaction documentation ® Dispute Process Steps to Initiating a Dispute Claim Step 1: Contact the merchant directly – Disputes are often resolved by contacting the merchant directly Step 2: If the merchant is unable to help, contact the issuing bank – The issuing bank will research the transaction with the merchant and their acquirer on the cardholder’s behalf – Citi: 800-790-7206 – Complete and submit dispute form – including additional required documentation Remember the 60 Day Rule! – Rights to dispute charges after the 60-day rule may be relinquished ® Dispute Process Steps to Initiating a Dispute Claim – Obtaining the Dispute Form CitiDirect® Card Management System CitiManager® Web Site Customer Service Fax completed dispute forms to (605) 357-2019 ® Dispute Process Obtaining the Dispute Form ® Dispute Process Obtaining the Dispute Form ® Dispute Process Obtaining the Dispute Form ® Dispute Process Obtaining the Dispute Form ® Dispute Process Obtaining the Dispute Form ® Required Fields: 1. Inquirer’s Name 2. Date 3. Cardholder’s Name 4. Account Number 5. Transaction Date 6. Dollar Amount of Charge 7. Merchant 8. Cardholder Signature 9. Error Description ® Dispute Process Obtaining the Dispute Form ® 1. Unauthorized Transaction 2. Multiple Processing 3. Merchandise Not Received in the Amount of $ 4. Cancelled Transaction 5. Merchandise Returned in the Amount of $ 6. Credit not Received 7. Difference in Amount 8. Copy Request 9. Services Not Received 10. Paid for by Another Means 11. Not as Described 12. None of the Above… ® Dispute Process Obtaining the Dispute Form Remember – the cardholder MUST sign the form ® ® Dispute Process Pop Quiz 1. What is the first step a cardholder should take in the dispute process? A. Contact the Merchant 2. If the merchant is unable to assist, what is the next step the cardholder should take? A. Contact Citi or Submit a Dispute Form 3. Name the website where the dispute form can be found. A. www.citimanager.com ® 3. CitiDirect® Card Management System Benefits ® CitiDirect® Card Management System Benefits Submitting the Dispute Form – Using the CitiDirect® Card Management System Preferred method for many agencies ® Ensure all required fields are complete (including dispute reason and transaction amount) prior to clicking “submit” button Attend CitiDirect® Card Management System hands-on session to learn more ® CitiDirect® Card Management System Benefits Submitting the Dispute Form – Using the CitiDirect® Card Management System ® 4. Ensuring a Successful Dispute Process ® Ensuring a Successful Dispute Process Cardholder Tips Submitting a dispute on line will initiate the dispute process May not dispute if previously disputed May not dispute if older than 60 days Cannot dispute fees A signed dispute form may be required ® Ensuring a Successful Dispute Process The Dispute Process ® 5. Dispute Resolution ® Dispute Resolution Chargeback Process at Citi 1. Citi requests charge amount via the merchant’s bank a. Visa requires merchant response within 45 days of notification of dispute b. If response is not received within 45 days, disputes are automatically resolved in favor of the cardholder 2. Documentation is sent to the Bankcard Associations ® Dispute Resolution Chargeback Process: Representment Representment: The disputed charge is rejected by the merchant and sent back to the issuer. 1. Merchant disputes charge. Reasons may include: a. Invalid reason b. Reason criteria not met c. Missing documentation or paperwork 2. Merchant provides supporting documentation of charge 3. Cardholder has opportunity to dispute 4. Account may be re-billed and resolved ® Dispute Resolution Chargeback Process: About Provisional Credits A provisional (temporary) credit may be applied when dispute is initiated The provisional credit may be re-billed to the cardholder’s account, depending upon – Merchant response / documentation – Cardholder’s failure to respond to correspondence from Citi requesting additional documentation ® Dispute Resolution Dispute Process: Chargeback Flow ® 1 Presentment 2 Chargeback Second Presentment 4 Arbitration Chargeback Arbitration Case Issuing Bank 3 5 Acquiring Bank ® Dispute Resolution Dispute Process: Confirmation 1. Cardholder completes dispute form a. Must complete within 21 days of verbal submission b. Include all documentation with dispute form c. Sign form d. Include any documented (verbal or written) correspondence with merchant e. Keep copies of everything 2. Citi sends letter to cardholder acknowledging dispute: a. Letter sent to address on file b. Allow 45 days for investigation 3. Investigation begins (allow 45 days) 4. Cardholder may be contacted to provide additional information a. Timely customer follow up is critical (even while traveling) or dispute may be closed b. Any Citi-issued credit could be re-billed c. Contact Customer Service to ensure receipt of documentation ® Dispute Process Pop Quiz 1. What is the timeframe your cardholders should allow for a dispute investigation? A. 45 business days 2. How long after the verbal submission does the cardholder have to submit the dispute form? A. 21 days 3. Cardholders must notify Citi of a dispute within ____ calendar days of receipt of their statement. A. 60 calendar days ® 4. Cardholder Tips ® Cardholder Tips Avoiding Unnecessary Delays – What is Within Your Control 1. Include ANY & ALL documentation with dispute form, including: a) such as receipts b) verbal / written correspondence with merchant 2. Always sign the form 3. Maintain copies of everything 4. If returned merchandise, show receipt or tracking information from shipper 5. Cardholder must have his/her receipt if questioning the amount billed 6. The currency amount in the total box is the amount that will be processed ® Cardholder Tips CitiDirect® Card Management System Dispute form must be received within 21 days of verbal submission May not dispute if previously disputed May not dispute if older than 60 days Cannot dispute fees ® Cardholder Tips Fraud Unrecognized Charges: – A single unauthorized charge may be merchant error Unrecognized Merchant: – Merchants may bill under a name other than their operating name or bill from a different state from where the purchase was made Unauthorized mail or telephone orders Charges appearing to be fraudulent will have a block placed on the account and a new account will be opened in its place Contact Customer Service to close account: – Complete affidavit – Fax to Security Operations at (605) 330-6801 Cardholders should contact Customer Service as soon as they believe the card is being used fraudulently ® Cardholder Tips Misuse Transactions due to misuse are not eligible for dispute or chargeback A/OPC manages to policy Proper use of tools – Use MCC restrictions – Manage credit limits – Close inactive accounts – Close terminated employee account immediately – Manage delinquency ® Dispute Process Pop Quiz 1. What must the cardholder do on all forms BEFORE sending them to the Disputes Department ? A. Sign their name 2. What should the cardholder maintain copies of? A. Everything related to the dispute 3. True or False: A cardholder should wait to verify that a charge is fraudulent before contacting Customer Service. A. False. If the customer believes a charge to be fraudulent, they should contact Customer Service immediately. ® 5. Tracking Disputes ® Tracking Disputes Keeping Track of Disputes A/OPCs: Use CitiDirect® Card Management System to view cardholder statements Cardholders: View statement Transaction Dispute Report ® Tracking Disputes Keeping Track of Disputes Settled in cardholder favor Dispute Date (2/9/09) Dispute Settled Date (3/11/09) ® Tracking Disputes Top 5 Ways to Ensure Success! 1) Fill out dispute form completely 2) Sign dispute form 3) Submit dispute form within timeframe 4) Provide all supporting documentation 5) Follow up for additional correspondence requests in a timely manner ® Disputes: Resolutions without Delay Summary This session was designed to assist you in achieving the following goals: • Provide an overview and outline of the dispute process • Provide tools and information to educate your cardholders • Facilitate more timely and effective dispute resolutions ® Terms & Disclosures IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. 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