In the payments industry, efficiently managing card disputes and mitigating fraud are essential to maintaining user trust and ensuring regulatory compliance. As a card issuer, Treezor provides its clients and agents with a clear, structured framework to handle e-commerce transaction disputes in full compliance with the European PSD2 directive and Mastercard/Visa scheme rules.
Discover how Treezor supports you in managing chargebacks, preventing fraud, and ensuring the compliance of your payment operations.
When a cardholder contests a purchase made with their card, they submit a refund request to the issuing payment institution.
Dispute management then relies on two core principles:
Where conditions are met, PSD2 mandates a refund by the next business day (D+1). Two primary conditions must be verified:
A chargeback is the card scheme-regulated mechanism enabling the issuer to request a refund from the acquirer, particularly when the merchant failed to apply Strong Customer Authentication (3D-Secure).
Three key actors interact during a chargeback: the issuer (Treezor), the card network (Mastercard or Visa), and the merchant’s PSP (the acquirer).
Payment dispute management is a rigorous process requiring a granular analysis of cardholder behavior, authentication methods used, and interbank rules
Treezor ensures strict compliance with regulatory provisions, notably Articles L. 133-16, L. 133-17, and L. 133-19 of the French Monetary and Financial Code. Based on the transaction type (authorized, unauthorized, lack of SCA, or gross negligence), Treezor determines D+1 refund eligibility to guarantee full legal compliance.
Leveraging Strong Customer Authentication technologies (3D-Secure with in-app validation) clearly establishes the liability shift between issuer and acquirer. When a merchant fails to comply with SCA requirements, the chargeback mechanism shifts the cost of fraud to the acquirer.
Treezor applies a precise framework to adapt processing to each operational scenario:
Partnering with Treezor for card dispute management delivers a smooth, secure operational framework that protects your brand.
Through rigorous case analysis, Treezor protects payment institutions against attempts at “friendly fraud” (a cardholder falsely claiming they did not initiate a purchase they actually made) or cases of gross negligence (sharing passcodes with third parties). In proven instances, the obligation for automatic refund can be waived or adjusted.
Treezor provides a guided workflow for dispute submissions:
By offering a transparent, regulated journey to your end-users, you deliver a professional service standard that boosts trust in your payment solutions while educating cardholders on security best practices.
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