As a business owner, do you know how long you should keep your credit card transaction receipts? If you get rid of them too early, you could expose your business to unnecessary liability. The most important reason for keeping your credit card transaction receipts is to avoid and fight chargebacks. A chargeback occurs when a customer disputes a charge that is shown on their monthly credit card statement. Some of the reasons that chargebacks occur include:
- Unrecognized Purchases
- Incorrect Product or Service
When a chargeback occurs, your business’ best defense is to provide a signed copy of the sales receipt. According to the statute of limitations relating to chargebacks, a customer has 18 months from the time the transaction occurred to dispute any charges. So, our recommendation is keep all credit card receipts for 18 months.
Since we are on the topic of chargebacks, here are a few pointers on how to limit them:
- Obtain a cardholder’s signature whenever possible.
- Ensure incorrect sale receipts are voided and that transactions are processed only once.
- If your business has policies regarding returns, refunds, or cancellations, disclose these policies at the time of transaction.
- Listen to your gut. If a transaction seems fishy, ask questions or don’t complete it.
- If you accept card not present transactions via mail, phone or internet, beef up fraud protection by adding address verification and CVV (three digit code) verification.
Chargebacks do occur and can be a hassle to fight if you do not have the proper documentation. Know your rights and always be prepared. If you have a concern or question about today’s blog posting, please contact us.