In one of the member portions of Merchant911 there’s been some discussion about what a merchant needs to do to in order to satisfy the Credit Card Company’s requirements for “Proper Disclosure” of refund policy. One of our members was able to locate and post those requirements.

I was going to post those requirements here but I’ve decided against it. Doing so would make it that much easier for the bad guys to scam merchants with bogus chargebacks. The requirements for Proper Disclosure in a chargeback or arbitration case are so stringent and so absurd that most merchants are not in compliance. The reason is simple. Some of the requirements defy common sense and logical thinking. In fact, you could argue that a couple of the requirements are impossible to meet.

Mind you, this has nothing to do with fraudulent transactions. It has to do with the scum called “customers” that make purchases and then initiate chargebacks for the sole purpose of getting something for nothing. If done right, (no, I won’t tell you how) there isn’t much a merchant can do about it, based on the fact that they probably have not met the requirements for disclosure of cancellation and refund policies.

Merchants beware

Even if you do have everything spelled out perfectly according to each credit card company’s ‘rules,’ chances are good that they’ll find some other reason to make you liable. Always remember that the issuer is going to side with the cardholder but they’re going to look for a way to make you eat the costs.