Best Practices for Good Faith Disputes

When it comes to disputes, you’ll want to make sure you’re working closely with your processor to ensure pending items are moving through the process as desired. For direct connects, you’ll want to stay on top of managing the process for yourself. 

Following are some suggested best practices to use when working with your processor on Good Faith items. 

What You Need to Know When It Comes to Good Faith Items:

  • Good Faith requests are exception items for which time frames have expired for chargeback rights or after certain types of losses in the dispute process. Understand the rules when it comes to how disputes are managed by your processor. Make sure you have the latest copies of their rules.  
  • Good Faith items have the potential to fall into default if they aren’t actively managed, which can negatively affect the outcome for your institution. Make sure your processor is following up within the established times frames.
  • If a Good Faith response action is not taken within the defined time frames, the Disputes System will automatically settle the transaction with no ability to appeal, settling in favor of the initiator. These responses must be made within 15 days from the initiated item.  
  • Ask your processor how to spot Good Faith requests on your reports or in their dispute system.

If you have any additional questions, I’m always here to answer them.

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