Originally Posted by
Majuki
Thanks for the follow up, Happy. For the package from Chase with all of the notes from the acquirer, it seems like Chase contested the charge. What was the reason given for contesting? Were they pursuing a Reason Code 76 chargeback (incorrect currency transaction code), or was there other language?
It certainly is possible to rerun the transaction in local currency, so what the Chase rep told you was incorrect. In fact, there have been a couple of cases in the past of Chase doing exactly that. Regardless, you weren't out any money on this one, and I'm glad you pursued the chargeback even if the outcome is less than ideal. Perhaps with enough complaints from customers and chargebacks to the acquirers the issuers and acquirers will take some action.
As far as this transaction goes, Chase issued a courtesy credit, so Chase ate the loss. The acquirer is the one who makes out well here, but certainly the chargeback inconvenienced them. From the merchant's perspective, it doesn't matter whether your charge was in dirhams or dollars. They're getting paid in dirhams. The only thing they potentially stand to lose by a chargeback and rerunning in local currency is whatever their cut is for performing DCC. Usually the acquirer and merchant split the profits on the spread between the DCC offer and the real exchange rate.
Tell you the truth, I dont care what Chase rep told me is correct or incorrect. The bottom line is, it costs Chase far more to do this rebill thing, then just simply issues a credit for the difference if the dispute is handled over the phone instead of doing the "formal" dispute of the whole thing by reversal and rebill.
Someone has already said it in this thread - it is ALWAYS the US Banks absorb the losses caused by DCC disputes.
At the end, Chase actually gives me $40 credit for the trouble I caused them, while the Acquirer totally got away from this. I should pay $47.10 had the merchant did not DCC.
Remember, I was not going to dispute this $2.35 difference, but decided to do it "for the team" so we at least learned something HOW the US bank would handle such a dispute.
Honestly I do not have patience to read thru 11 pages of the information on the transaction - 5 pages are Transaction Details, 6 pages are Visa Resolve Online. The Acquirer's brief note did mention Code 76. So indeed Chase used the code to "contest" the charge.
Below is what the
Acquirer Certificate says - I am typing this as exactly what it says
Dear Issuer.
Your raised dispute under RC 76 Incorrect currency
Your Centre raised for full amount of USD49.45 whereas the charged amount was AED173.00 which is equivalent to USD47.10 only (USD49.45-USD47.10) having a difference of USD2.35.
We are willing to accept the difference amount of USDf2.35.
Please raise pre-arbitration for USD2.35.