Second Presentment

In commerce, presentment refers to furnishing a bill, note, or other document as for acceptance or payment. In most transactions, a merchant usually only needs to complete one form of presentment. However, if a transaction is disputed and results in a chargeback, the merchant must submit a second presentment (sometimes referred to as re-presentment) in order to prove that the transaction was valid.

Both MasterCard and Visa have rules regarding the second presentment part of their chargeback resolution process. The chargeback resolution process exists to collect evidence and determine in either the merchant’s or consumer’s favor. The rules are similar, as second presentment is a necessary step in proving whether or not a chargeback was valid.

When going through Visa’s process, this part is called “Dispute Submission.” When dealing with fraud & authorization issues, Visa will determine whether or not a charge was fraudulent based on the information they have. When dealing with consumer & processing errors, Visa will have issuing banks fill out an enhanced questionnaire, which counts as what we would call “second presentment.” This questionnaire aids Visa in determining the outcome of the chargeback resolution and, if sufficient evidence is presented to prove that the chargeback was invalid, can result in a judgment in your favor.

Second presentment in the MasterCard chargeback resolution process falls under “Cycle #2.” When the acquiring bank refutes the issuing bank’s first chargeback, the acquiring bank must present evidence that the transaction was valid and that the chargeback should not have been filed in the first place.

In order to present sufficient evidence that the transaction was valid, be sure to keep careful documentation of all transactions as proof. These documents can include things like a signed sales or delivery receipt or correspondence with the customer. Be aware of the timelines that Visa and MasterCard have set forth in their guides, to prevent violating the time limit for second presentment.