BLAZEPAY | Disputes and Chargebacks

 

Quick Guide: What Should I Do?

If you receive a notification:

1. Check the status in your BLAZEPAY portal
2. If it shows “Needs Defense” → you can submit evidence
3. If it shows “Not Defendable” → no action is required (this is determined by the card network)
4. Review the transaction and take any preventative action (refund, block customer, etc.)

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Key Terms (Simple Breakdown)

Notification of Fraud (NOF)
An early warning that a transaction may be fraudulent.

• No money has been taken yet
• This can still turn into a chargeback later

Dispute
A cardholder has contacted their bank to question a charge.

• This may lead to a chargeback
• Sometimes you can respond with evidence

Chargeback
Funds are reversed and returned to the cardholder.

• Fees may apply
• Some chargebacks can be challenged, others cannot

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❗ Why Some Chargebacks Cannot Be Defended

In certain cases, the cardholder’s bank flags a transaction as fraud early in the process.

When this happens:

• The case may be locked at the network level
• Evidence cannot be submitted, even if available
• The outcome is often determined before it appears in your portal

This is most common with:

• Card Not Present fraud (online transactions)
• Transactions reported as fraud immediately by the cardholder

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⏱️ Understanding Portal Statuses

You may see statuses like:

• “Needs Defense”
• “Not Defendable”

Important notes:

• Statuses can update quickly (sometimes within hours)
• Timing in the portal may not exactly match when decisions were made
• A case may appear actionable but later be marked not defendable

👉 The portal is best used as a notification tool, not a real-time decision system

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🛡️ How to Defend a Dispute (When Allowed)

If your dispute is marked “Needs Defense”:

1. Log into the BLAZEPAY Merchant Portal
2. Navigate to:
   • Transactions → Disputes
3. Select the transaction
4. Click Defend Dispute
5. Upload all relevant documentation

Common supporting evidence:

• Receipt or invoice
• Proof of delivery or pickup
• Customer communication
• AVS (address match) and CVV verification
• IP address or order details

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📊 What’s Normal? (Industry Context)

Chargebacks are a normal part of accepting payments online.

• Most businesses see 0.6% to 1% of transactions result in chargebacks
• That’s 6 to 10 chargebacks per 1,000 transactions

If you’re below this range, your setup is performing well and fraud is being managed effectively.

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🧠 Best Practices to Reduce Chargebacks

While not all fraud can be prevented, these steps can significantly reduce risk:

For Online Orders

• Check IDs and make sure they match the credit card used for the purchase
• Review high-risk orders manually (large orders, mismatched details)
• Delay fulfillment briefly for suspicious transactions

For In-Store Pickup

• Check IDs and make sure they match the credit card used for the purchase
• Keep records of pickup confirmation (receipts, signatures)

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✅ Key Takeaways

• Not all chargebacks can be challenged
• Some are blocked from defence by the card network
• Portal statuses may change quickly and don’t always reflect real-time decisions
• Focus on prevention and strong transaction verification to reduce future risk

1. 1. Log into the BLAZEPAY Merchant Portal
   2. Transactions > Disputes > click on chargeback > bottom right of slide out
      
      
      
   3. Select Defend Dispute and upload the appropriate documentation
      
      

Common Dispute Reasons and Defence Steps

Reason: Non-Receipt of Goods or Services

Reason Code: 4555

Description: The cardholder claims that they did not receive the goods or services they purchased at your business.

Defendable: Yes

Timeframe for Defence: 30 days from receiving the Notice of Chargeback

Defence Requirements: Description of the goods. Signed proof of delivery and an AVS (Address Verification Service) match. Communication where the cardholder confirms possession of the goods. Explanation of why the shipment was delayed (if applicable). Proof that the cardholder did not try to contact you to resolve the problem, such as a screenshot of an empty email or phone queue with their details filled out.

Best Practices on How to Avoid: Check Customer ID / If repeat issue, ban the customer

 

Reason: Incorrect Transaction Amount Presented - Charge Amount Exceeds Authorization Amount

Reason Code: 4521

Description: The charges submitted were either incorrect or exceeded the authorized amount.

Defendable: Yes

Timeframe for Defence: 14 days from receiving the Notice of Chargeback

Defence Requirements: Proof that a valid authorization approval took place for the full amount of the transaction.

Best Practices on How to Avoid: Validate the price of goods sold at the time / Keep receipt proof 

 

Reason: No Valid Authorization

Reason Code: A02

Description: The payment could not be authorized.

Defendable: Yes

Timeframe for Defence: 14 days from receiving the Notice of Chargeback

Defence Requirements: Proof that confirms the card number. Proof that an authorization approval was obtained for this card number.

Best Practices on How to Avoid: Check Customer ID / If repeat issue, ban the customer

 

Reason: Non-matching Card Number

Reason Code: 4507/P22

Description: The card number used for the transaction is not assigned to a valid account nor to the cardholder.

Defendable: Yes

Timeframe for Defence: 14 days from receiving the Notice of Chargeback

Defence Requirements: Proof that confirms the card number.
Proof that an authorization approval was obtained for this card number.
Copy of the record of the terminal that electronically read the card number.
Proof of refund (if applicable).

Best Practices on How to Avoid: Check Customer ID / If repeat issue, ban the customer

 

Reason: Expired/Not Yet valid card

Reason Code: 4758

Description: The transaction completed with an expired card.

Defendable: No

Best Practices on How to Avoid: Check the card expiration date

 

Reason: Goods and Services not Received/Refused

Reason Code: 4513

Description: The cardholder claims that the goods or services they purchased at your business were not received or refused.

Defendable: Yes

Timeframe for Defence: 14 days from receiving the Notice of Chargeback

Defence Requirements: Proof that the cardholder received your cancellation or return policy and agreed to those at the time of the purchase, and did not cancel according to the disclosed policy. Attach the relevant policies as a screenshot or text (no links to websites).
Proof that notice of upcoming billing was sent to the cardholder 10 days before transaction.
Proof that the cardholder did not try to contact you to resolve the problem or cancel, such as a screenshot of an empty email or phone queue with their details filled out.

Best Practices on How to Avoid: If repeat issue, ban the customer / Keep proof that the cardholder did not return the merchandise.

 

Reason: Goods Returned/Canceled

Reason Code: 4513

Description: The cardholder claims that the goods/services they ordered were canceled.

Defendable: Yes

Timeframe for Defence: 14 days from receiving the Notice of Chargeback

Defence Requirements: Proof that the cardholder received your cancellation or return policy and agreed to those at the time of the purchase, and did not cancel according to the disclosed policy. Attach the relevant policies as a screenshot or text (no links to websites).

Best Practices on How to Avoid: Maintain order confirmation emails or receipts / Proof of delivery/returns/transactions.

 

Reason: The goods or services were not received

Reason Code: CD12

Description: The cardholder did not receive the goods or services paid for.

Defendable: Yes

Defence Requirements: Description of the goods. Proof of delivery and an AVS match. Communication where the cardholder confirms possession of the goods. Explanation of why the shipment was delayed (if applicable). Proof that the cardholder did not try to contact you to resolve the problem, such as a screenshot of an empty email or phone queue with their details filled out.

Best Practices on How to Avoid: Maintain order confirmation emails or receipts / Proof of delivery/returns/transactions.

 

Reason: Counterfeit merchandise

Reason Code: 4853

Description: The merchandise was identified as counterfeit by the customer or a third party, for example, a customs agency. The goods were not produced by the authorized manufacturer and infringe on intellectual property rights.

Defendable: Yes

Timeframe for Defence: 40 days from receiving the Notice of Chargeback

Defence Requirements: Proof that the cardholder did not try to contact you to resolve the problem or returned the merchandise, such as a screenshot of an empty email or phone queue with their details filled out. Proof that the merchandise was as described or was not damaged or defective, such as photographs. Proof of delivery if the merchandise was replaced/repaired. Email communication with the cardholder or agreements that were made.

Best Practices on How to Avoid: Provide information on how to identify authentic products vs counterfeit items / Maintain purchase records from vendors.

 

Reason: Visa Fraud Monitoring Program

Reason Code: 10.5

Description: Visa notified the cardholder's bank that the Visa Fraud Monitoring Program (VFMP) identified the transaction and the cardholder's bank has not successfully disputed the transaction under another dispute condition.

Defendable: No

Best Practices on How to Avoid: Monitor transactions / Verify ID with the card payment / If repeat issue, ban the customer.

 

Reason: Duplicate Processing

Reason Code: 12.6.1

Description: The cardholder claims that a single transaction was processed more than once, or they paid for the merchandise or service by other means such as cash, check, other card, and other options.

Defendable: Yes

Timeframe for Defence: 18 days from receiving the Notice of Chargeback

Defence Requirements: Copy of an invoice for two separate orders or proof that each transaction was processed separately.

If only one transaction has taken place, provide the following:

• Documentation for this single transaction.
• Proof that no other transaction was processed.
• Proof that a refund has been provided (if applicable).
• Proof that no other form of payment was used.
• Proof that a refund has been provided (if applicable).
• Communication with the cardholder after the payment stating any agreements that have been made.

Best Practices on How to Avoid: Perform transaction reconciliations / Provide the customer with a clear physical receipt / If repeat issue, ban the customer

 

Reason: Counterfeit Card

Reason Code: 4562

Description: The cardholder claims that they did not authorize or participate in a transaction that you processed.

Defendable: Yes

Timeframe for Defence: 30 days from receiving the Notice of Chargeback

Defence Requirements: Copy of a (signed) transaction receipt. CCTV footage that the customer did participate in the transaction. AVS check on the address provided by the consumer/cardholder. Proof that the cardholder did participate in the charge. This can be done by adding billing authorization, proof of delivery to the cardholder's billing address, contracts, usage details, or other options. An IP address that can be connected to the billing address provided by the cardholder. Any type of verifications such as email, mobile, and other options.

Best Practices on How to Avoid: Keep detailed records of the sale: customer comms/ signatures/ sales receipts / If repeat issue, ban the customer

 

Reason: No Cardholder Authorization

Reason Code: 4837

Description: The cardholder states that they, nor anyone authorized by them, engaged in the transaction.

Defendable: Yes

Timeframe for Defence: 40 days from receiving the Notice of Chargeback

Defence Requirements: An AVS check on the address provided by the consumer/cardholder. If applicable, include in the defense if a CVV/CVC check was performed and passed. Proof that the cardholder has participated in the charge. This can be done by adding billing authorization, proof of delivery to the cardholder's billing address, contracts, usage details, or other options. An IP address that can be connected to the billing address provided by the cardholder. Any type of verifications such as email, mobile, or other options.

Best Practices on How to Avoid Disputes and Chargebacks:

• ID checks. Request a photo ID to verify the identity of the cardholder before completing the purchase.
• Prompt the customer to insert their card's chip rather than using tap-to-pay or the magnetic strip. Chip transactions tend to be more secure.
• Receipt confirmation. You can ask the customer to review and confirm the transaction details before completing the sale.
• Customer communication. When customers use their card for their order, please let them know that they can contact the store directly if they have any questions or concerns after completing. That way your team can help resolve any issues directly with the member.