MasterCard International said it would implement in October a new automated service through which member banks can send and receive documents to support disputed transactions.
The service, to be known as Chargeback Support Documentation, will use the MasterCom electronic-imaging system.
Member banks will send chargeback documents, such as a letter from the cardholder, in electronic form to MasterCard.
Starting in October, all MasterCard members will be required to send chargeback documents over the system.
Those that choose not to use the system will be held responsible for the chargeback cost if MasterCard does not receive timely documentation.
MasterCard expects the system to result in $40 million in savings for members, which will come from reductions in float times, postage costs, chargeback liability, and back office inefficiencies.
Members can send electronic images of their chargeback documents using their own hardware. Access to MasterGem is also available through credit card processors and hub sites in Paris, Hong Kong, Europe, Singapore, St. Louis, Sydney, and Tokyo.
"One in three chargebacks requires documentation," said David Africk, senior vice president in MasterCard's electronic services.
"The new CSD application will provide a complete delivery, tracking, and audit process to streamline member back office operations, expedite delivery, and reduce chargeback cycles resulting from the nonreceipt of required documentation."
