Credit Card Chargeback Guidelines - ADM Prevention

The following guidelines are consolidated as a result of the ADM Management & Reduction Project’s effort in identifying root causes of ADMs. Between 2015-2016, Card Chargebacks represented a mere 3-4% of all ADMs that could be categorized with a reason for issuance, yet it represented approximately 20% of the total value of ADMs globally. Whilst in the ADMs there is a lack of description for the reasons of the Chargebacks, the ADM Working Group discussed the difficulty in managing tight timeframes in providing evidence allowing the Airline to challenge the chargeback and remedy the Dispute.

The following guideline aims to lay out the process and, in collaboration with the Industry Fraud Prevention Project, to consolidate the best practices and useful information that may help the industry prevent for the occurrence of card Chargeback-related ADMs.

NOTE: Within the paper, the Merchant is assumed to be the Airline, as such is the case for BSP Card Sales), which is the scenario in where ADMs apply. However, the same guiding principles apply in the attempted prevention, and remediation, of any chargeback received directly by an Agent who is the Merchant of Record. DOWNLOAD THE DOCUMENT HERE