Introduction to this document

Remittance advice for card payments

Unfortunately, there’s an increasing trend for cardholders to reject transactions when they eventually appear on their statements. If you intend to ask more of your customers to pay by credit or debit card, there’s something you might like to add to your in-house procedures.

Cardholder not present

Although there isn’t a problem with most credit or debit card settlements, evidence suggests that some customers actually forget what they’ve paid for by the time their monthly statement eventually arrives. They then presume that the transaction they don’t recognise is a fraudulent one and contact their credit card company to reject it. This results in an immediate chargeback to you by the card company. You then have to submit evidence that this was a legitimate transaction. This can definitely be a problem if you make sales under one of your brand names but you collect under your company’s name for administrative convenience.

For new customers in particular, issue a Remittance Advice For Card Payments about the payment having been taken by credit card and attach their copy of the receipt from your point of sale machine. This gives you the evidence to help make the payment stick, should it later be rejected by the cardholder.