A retrieval fee is charged when a customer or the customer's issuing bank requests a copy of a sales draft in order to substantiate a transaction. This is called a retrieval request, and most credit card processors charge a nominal retrieval fee to process a request.
A retrieval request is sent by a cardholder's issuing bank to the processing bank which sends the request to the business. At this point a processor will assess a retrieval fee.
A retrieval request does not involve the refund or reversal of a transaction. A reversal is initiated if a chargeback occurs.
- Reasons for Retrieval Request
- Preparing for Retrieval Requests
- Responding to a Retrieval Request
- Retrieval Requests & Chargebacks
Reasons for Retrieval Request
Retrieval requests may be initiated by a cardholder or her bank for a number of different reasons including:
- Cardholder inquires (e.g., a customer does not recognize a charge)
- Cardholder disputes (e.g., an item arrives not as described)
- Point-of-sale processing errors (e.g., a terminal does not pass all required line detail)
- Fraud inquires (e.g., an issuing bank determines a transaction is outside the normal processing behavior of a cardholder)
Preparing for Retrieval Requests
Retrieval requests are issued to satisfy a question or to fulfill required information for a specific transaction. If a business is unable to supply the information requested, the issuing bank will likely initiate a chargeback.
The best way to prepare for retrieval requests is to abide by Visa and MasterCard regulations that require businesses to save sales receipts. Visa requires sales drafts to be saved for a minimum of three years, and MasterCard requires receipts to be saved for 180 days.
The preservation of sales records is much easier for businesses that utilize a POS system to electronically track and store data. Businesses that use terminals are forced to save paper receipts in an accessible file system, or scan paper receipts for digital storage.
Responding to a Retrieval Request
Responding to a retrieval request in a complete and timely fashion is crucial to maximize the chances that the retrieval does not result in a chargeback.
Provide any and all required documentation and return the package to your acquiring bank or processor via mail or fax within ten days. The acquiring bank will then forward the retrieval request to the issuing bank via fax, mail, or through the MasterCom system for request involving MasterCard transactions.
If the issuing bank does not receive a response within the allotted time (usually 30 days) it may issue a chargeback citing "Requested Item Not Received." This type of chargeback is particularly bad because a business has no reversal rights. In other words, there is no way to reverse a chargeback due to "Requested Item Not Received."
The following guidelines will help to ensure a retrieval request does not result in a "Requested Item Not Received" chargeback.
- Ensure that the sales receipt is clearly legible, and all required information is present.
- Ensure that the business name and contact information is clearly recognizable on the sales receipt.
- Have an efficient procedure in place for retrieving sales transcripts to ensure requests are sent back in the allotted time.
Retrieval Requests & Chargebacks
Retrieval requests are not the same as chargebacks, and a retrieval request may or may not end with a chargeback being initiated. If the information provided for a retrieval request satisfies an issuing bank or cardholder's inquiry, a chargeback will not occur.
If a business does not respond to a retrieval request in the allotted time, the information provided for the request is incomplete, illegible, or insufficient, a chargeback will likely be initiated.