Chargeback Guide for Merchants (Centerbase Payments)

1. Understanding When Chargebacks Are Initiated

Chargebacks are a protection mechanism for cardholders, allowing them to dispute a transaction under certain conditions. As a merchant, it's essential to understand the common reasons for chargebacks:

• Fraud: If a cardholder believes their payment information was used without their permission, they can file a chargeback.
• Customer Complaints: If a cardholder is dissatisfied with the products or services received, they have the right to dispute the transaction.
• Authorization Issues: Chargebacks can also be filed if there is an issue with the transaction authorization, such as using an expired or invalid authorization code.
• Processing Errors: If a mistake occurs during the transaction process, such as incorrect billing, the cardholder might initiate a dispute.

Merchants are not typically charged a fee for chargebacks; however, the customer may incur a fee depending on their bank's policies.

2. Reasons for Returned E-Checks

Understanding why e-checks are returned can help you manage your payments more effectively:

• Insufficient Funds: If the customer's account does not have enough funds to cover the check amount, it will be returned.
• Cancellation Requests: If a customer cancels the e-check in the period between its authorization and the withdrawal of funds, the check will be returned.

In both scenarios, fees are usually applied to the client (your customer). It's important to note that the customer (such as a law firm) may also be subject to these fees.

3. Handling Chargebacks and Returned E-Checks

When a chargeback is initiated or an e-check is returned, it's important to understand how the funds are managed:

• Fund Source for Chargebacks and Returns: Initially, these amounts are drawn from the FBO (For Benefit Of) account, which is essentially a holding fund for all transactions processed through Centerbase Payments (as indicated in the red box in the image provided). This account is used to temporarily store payments before they are transferred to a more permanent trust or operating account.
• Insufficient FBO Balance: If the FBO account does not have sufficient funds to cover the chargeback or returned check, the necessary amount will then be drawn from the primary account on record. It is crucial that this primary account is an Operating Account (as highlighted in the green box in the image).

Remember, the FBO serves as a transitional location for funds awaiting deposit into your designated trust or operating accounts.

4. Notification Process for Chargebacks and E-Check Returns

When a chargeback or e-check return occurs, firms are promptly notified through automated emails:

• Immediate Notification from Centerbase Payments: As soon as a chargeback is initiated, Centerbase sends an automated email to the firm. This ensures immediate awareness of the situation.
• Daily Notification from Centerbase: Centerbase sends an automated email at 10:00 p.m. Central time each business day. This occurs when it detects discrepancies in the expected balance within the FBO account, compared to the sum of all payments. The email from Centerbase instructs the user to contact their Customer Service Manager (CSM) or Support team for assistance in resolving the issue.

Please note, while prompt action is encouraged, you are not expected to address these issues outside of normal business hours. Your well-being is important, and no one is expected to work after hours to resolve these financial disputes.

5. Viewing Customer Disputes

To access and manage customer disputes, follow these steps:

1. Access the Portal: Go to MerchantPortal.Centerbase.com and log in with your credentials.
2. Navigate to Disputes: In the left navigation panel, click on "Disputes."
3. Review Disputes: You will see a list of all disputes involving all merchants on the platform.
4. Filter Disputes: Use the filters "Open," "Closed," "Won," and "Lost" to view disputes in each respective category.