Identity verification, fraud prevention and chargebacks

We want to make sure you and your customers are protected. ProPay has an on-site Risk Management Team that handles everything from fraud analysis to chargebacks. Your knowledge is an important part of protecting your customers and your business. Find out how to reduce chargebacks, prove that a transaction is valid and why funds are sometimes put on hold.

I have a chargeback on my account. What does this mean?
What is a chargeback? A chargeback occurs when a customer disputes a charge on their credit card. When this happens, the customer’s bank will reverse the charge and credit the funds back to the customer’s account. This money will be taken directly from your ProPay account. A $27.00 nonrefundable fee will be automatically assessed if a chargeback occurs. Also, if the chargeback causes your ProPay account to go negative, you will be responsible for covering the negative balance.
 
As the merchant, you are given the opportunity to issue a formal rebuttal to the chargeback.  You can do this by providing any documentation that you have that supports the legitimacy of the original transaction. Once that documentation is submitted, the bank will review it and decide whether or not to honour the original transaction. If they decide that the charge is valid, the funds will be returned to your ProPay account. Otherwise, they will remain in your customer’s account.
 
What can you provide to prove that your transaction is valid? If a chargeback occurs on your account, ProPay’s Resolutions department will contact you with details on how to start the formal rebuttal process. This email will contain a specific list of what you can provide to prove to the bank that your transaction is legitimate. Here are a few suggestions of the types of documentation you will want to keep from your sales so you can provide them in case of a chargeback:
  • Any signed invoices, contracts, sales slips, card imprints or anything bearing the signature of your customer
  • Terms and Conditions, if applicable
  •  Proof of delivery (signed is always best)
  •  Any correspondence from the customer regarding the sale or products and/or services
  • A brief letter from you outlining the circumstances surrounding the transaction
 
What now? Once you receive the email from our Resolutions department, you have 14 days to respond with your documentation. We will submit your documentation for the bank to review. The bank has 60 days to review the documentation and get back to us with their decision.
 
 
Why can’t I access the funds in my account?
One way that ProPay provides superior payment processing is by ensuring the security of all transactions.  At times, we must do additional verification on certain transactions. When this occurs, we may place a hold on the funds in your account until we are able to verify the transactions in question. You will receive an email from our Resolutions department asking you for as much of the following information as you can provide:
1.  Customer-signed invoice showing total amount charged and listing products or services sold 
2.  Cardholder Name
3.  Billing address
4.  Shipping Address (if different)
5.  Total amount billed
6.  Last four digits of card
7.  Cardholder phone number
8.  Products or services purchased
9.  How you know this customer, or how customer contacted you
10. Tracking number or shipping documentation
 
The Resolutions team will review your documentation and contact you within 1-3 business days.
 
Why do I need to provide additional business information?
You may receive an email from our Resolutions department asking you to provide some additional information regarding your business. One way that ProPay provides superior payment processing is by having a solid understanding of our customers’ businesses.  At times, we must do additional verification.
 
We may place a hold on the funds in your account in order to verify what your business is, who your customers are, what type of products or services you provide, and where you obtain those products (if applicable). You should reply to the email from the Resolutions department with as much of the following information as possible:
1. A copy of a voided bank check
2. A list of products or services sold including prices (a copy of a price list or URL of your schedule of fees would suffice)
3.  A copy of your business license
4.  A copy of your service agreement or a sample contract that your customers sign
5.  Supplier documentation and contact information (if applicable)
6.  A copy of a local advertisement (if applicable)
Why wasn’t my account approved?
ProPay is required by law to verify the identity of each new account holder. When our automated system is for any reason unable to complete this process, our Verifications team must manually verify your information.
 
You will receive an email from the Verifications team requesting additional information. This email will include a copy of the Verifications form that will need to be physically signed and emailed back to us. You will also need to include a copy of your Driver’s License (or any non-expired, government issued photo ID), and a copy of a voided check with your current address or a copy of your Social Security card. Please return this information to verify@propay.com. If you would like to verify that we received your information successfully, feel free to call customer service at 40.0250.1744 and we can assist you. Once your information has been received, please allow 1-3 business days for processing.
 

To Learn more, visit our Knowledge Center, watch our Tutorials, call our Customer Support Team at 0800.440.126 or email us at customerservice@propay.com.

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