In short, it can also be described as compliance with the rules. Outside the chargeback rules, compliance can be described as the process by which a party that suffers a loss because banks failed to follow the rules set by card payment organizations collects the relevant amount from the party that caused the loss.
Although it falls outside the scope of the chargeback rules, a bank that suffers a financial loss because of practices that violate card payment system rules sends its dispute to the counterparty bank through compliance, by proving that the loss would not have occurred had the relevant rule been followed.
To calculate the period of the rule violation, either the date the transaction was posted to the card or the date the violation was discovered is used as the basis. Whichever of these two dates applies, the calculation starts from that date. The calculated period cannot exceed 180 days.
As in the chargeback process, all relevant documents and information must be submitted by the merchant to the merchant's bank.
If the dispute cannot be resolved by the merchant's bank and the cardholder's bank, the matter is referred to the Arbitration Committee, which makes an impartial assessment and decides which party bears the financial responsibility. The application and fee information previously mentioned for the Arbitration Committee also applies to compliance.
What are the reasons for compliance?
The main compliance reasons are as follows:
Hotel reservation and car rental services
For unused or uncancelled hotel reservations and car rentals, merchants may charge only one night's or one day's no-show fee. This right is valid only if the rule was communicated to the cardholder at the time of reservation and accepted by the cardholder. Even if the contract states otherwise, the merchant cannot charge for more than one night or day.
Receipt Splitting
All purchases made at the same merchant with the same card must be completed in a single transaction by obtaining an authorization for the total amount.
For the same sale, the amount must not be split or reduced when obtaining the authorization, and the transaction must not be completed with an authorization for a lower amount.
Installment transactions must be made only through POS terminals for which the merchant's bank has granted installment authority. Installments must not be arranged by any other manual method (such as several pre-prepared mail order forms).
Invalid signature
The merchant is obliged to check that the signature on the back of the card matches the signature on the receipt.
If a card is unsigned on the back, the cardholder must be asked to sign it before the transaction is processed, and if the cardholder does not sign, the transaction must not be completed.
Surcharge Request
A merchant cannot request any surcharge beyond the product/service price because the payment is made by card, and cannot collect a different amount from the cardholder for the relevant product/service.
Delayed Charges Posted to the Cardholder
Delayed charges may be posted to the cardholder only for hotel stays, car rentals and cruise line voyages, and only provided that the cardholder's written approval and consent is obtained before the transaction.
Example transactions:
- Additional services used at hotels, other than the accommodation fee, for which the cardholder is responsible (minibar, room service, spa, etc.),
- In cases such as damage or destruction occurring in the room or elsewhere in the hotel, a charge cannot be posted to the cardholder afterwards. A general approval given by the cardholder in advance is not sufficient.
- Taxes arising from the use of the service (for example, cases where the cardholder fails to fulfill their obligations under a tax-free arrangement)
- Amounts arising from insurance/parking fines/traffic fines/damage relating to the rented vehicle
- Products/services purchased on board a cruise ship during the voyage
- In car rental transactions, when a parking or traffic fine needs to be charged to the cardholder, the merchant must obtain the penalty report and receipt from the local authority and submit it together with the license plate number of the vehicle involved, the date of the violation, the reason for the violation and the amount of the fine. For traffic violations, if the date on which the additional amount is charged to the cardholder is more than 30 days after the notification from the relevant authority, financial responsibility may remain with the merchant on the grounds of late charging.
- In case of damage to the vehicle, the merchant must provide its bank with the rental agreement, the estimated repair cost, the accident report and a document signed by the cardholder showing that the cardholder accepts the costs arising in the event of an accident.
- Apart from the conditions stated, no delayed charge can be posted to the cardholder.
- In car rental transactions, in case of damage to the vehicle, the cardholder must be informed in writing within 10 business days from the date the vehicle was taken back by the merchant about the additional amount to be charged, and the cardholder's approval must be obtained.
Refund Transactions
Refunds for transactions made with credit cards and debit cards can only be made by issuing a refund document, using the same card acceptance method and to the same card.
No other refund method, including EFT / wire transfer through the bank channel to the card or to a named person, may be used. If a refund is made to the cardholder by a method other than a refund through the card payment system (cash, cheque, EFT, wire transfer, etc.), the financial responsibility belongs to the merchant.
Use of Deposits
A deposit may be taken in hotel, car rental and cruise line transactions. The merchant can determine the deposit amount itself. However, this amount,
- cannot be higher than the total amount of the stay or the cruise line voyage,
- cannot exceed the amount for 14 nights for stays.
In a transaction with a deposit, the merchant must inform the cardholder about the following:
- The daily rate and the total transaction amount
- The full name and location of the hotel, the name of the cruise ship and the full address of the departure port
- How many nights the merchant intends to reserve in the customer's name for the hotel or ship accommodation, for the amount paid
- The merchant's cancellation / refund policy
The merchant must send the cardholder a reservation confirmation, and the confirmation must include the following information:
- Confirmation code,
- The conditions and requirements stated in the merchant's cancellation policy,
- The date and time until which the cardholder can cancel the accommodation reservation without being subject to any deduction or penalty.
- If the cardholder has made a change to the reservation, the written confirmation must be renewed.
