While most merchants are familiar with Chargebacks, there is something else called a Retrieval that, while less frequent, can lead to a chargeback.
Retrievals occur when the card issuing bank is suspicious of a transaction and requests that the merchant provide more information regarding the validity of the sale. These can be initiated by a cardholder calling their bank and questioning charges, or by the bank if they believe the transaction is suspicious.
When you as a merchant receive a retrieval request, they do not take the money from your account initially, as they would in a chargeback, but you will receive a letter from your processor requesting verification of the transaction. What they are looking for specifically will be outlined in the letter. Generally, they are looking for proof that the transaction took place and that there is a valid signature from the cardholder on the receipt.
If you fail to respond within the specified time frame, the retrieval defaults to a chargeback, usually without the ability to dispute, and the money in question is taken from your account as a chargeback.
As with chargebacks, our advice is that you keep copies of all of your receipts, as well as check ID with credit card purchases so that when they do come, you will be prepared.
For questions or more information, contact us by phone at (800) 644-3909 or email us at firstname.lastname@example.org
-The Agapay Team