🚚 Transport and Utilities

This category includes businesses that offer transportation services (ride-hailing, car rentals, public transportation, shipping, and logistics services) and utility bill payments (electricity, water, telecommunications, etc.). These are often mobile-first platforms that offer instant or recurring services.

• Service not provided or delayed delivery: Customers may raise disputes if a service they paid for was not delivered or was delayed beyond the expected timeline.

  • This could be a customer not receiving an electricity token after a purchase

  • An internet subscription is not activated after payment, or not getting credited for an airtime top-up.

  • In transport, it could be related to a missed pickup, vehicle no-show, or delays in shipment.

• Service not as described: If a customer believes the service they received was different from what was described by the merchant, they could file a dispute. For example:

  • A transport service promised an air-conditioned vehicle but did not provide one.

  • A data plan did not come with certain features or attractions that had been advertised.

• Incorrect billing: A customer could get charged a surge fare without getting any prior notice, or extra charges for tolls and waiting time that are added erroneously.

• Unrecognized charges: Some customers may not recognize transaction descriptions on their bank statements, especially if the merchant descriptor is vague or unrelated to the service name.

• Failed service but still charged: Scenarios of this are:

  • A failed ride due to the driver’s cancellation, but the customer was still charged.

  • Utility payment made (internet, TV subscription, etc.), but the service remains disconnected.

• Unrecognized transactions: Some customers may not recognize transaction descriptions on their bank statements, or they might get a debit days or weeks after completing a payment, making it difficult to identify. This confusion can often lead to a dispute.

• Unauthorized transactions: A stolen card may be used to pay for trips on a ride-hailing platform. If the rightful cardholder notices an unauthorized charge on their account, they may raise a dispute with their bank to recover the funds.

To defend your business against any disputes in the transport and utilities space, it's essential to provide proof that the service was both requested and fulfilled.

• Order or service details: An invoice showing the customer’s information, along with the transaction details (amount, date, etc.), and details of the order or the service that the payment was for (an order summary).

  • For example, if it’s an electricity token purchase, include the token number, the customer’s meter number, and confirmation that the token was successfully delivered.

  • If it’s a ride or transportation service, include trip details such as pickup and drop-off locations, timestamps, the vehicle number, and the driver’s name.

• Appointment confirmations or dispatch notices: If you’re providing a time-bound service(e.g., ride-sharing, scheduled maintenance), you can share proof that confirmations or updates were sent to the customer.

• Terms of service: You should include details of any terms and conditions the customer agreed to, especially refund and cancellation policies.

If a customer raises a pre-arbitration chargeback, it means they are dissatisfied with your response to the first chargeback. You need to review the transaction carefully to confirm if the customer indeed received value. If value was not given, then you should accept the chargeback so that the customer gets a refund of their payment.

However, if you confirm that the customer indeed received value, these are the steps to take to approach resolving the claim:

• Review your initial response: You should confirm if the evidence you provided at the first stage properly addresses the reason for the chargeback.

• Add new supporting documents: If there’s more context that was missed or updated records are available (e.g., you should provide system logs where available).

• Review communication history: If you tried to resolve the issue directly with the customer, include proof of those efforts. This could be screenshots of emails or chats. It’s also recommended to prioritize communication via email, as it presents a more professional and verifiable form of documentation when responding to pre-arbitration chargebacks.

• Reliable delivery services and provide tracking: Whether you're sending out electricity tokens or transport confirmations, make sure the customer can trace their purchase.

• Set clear product descriptions and realistic timelines: Be clear about product offerings and other details (e.g., a mobile or router data plan), timelines for a journey/trip, delays, or service limitations.

• Send appointment or service reminders: Use SMS, email, or app notifications to remind customers about their purchases and other services.

• Use clear merchant descriptors: Make sure your business name is included in debit notifications to customers and on their bank statements.

• Make customer support accessible: A lot of issues can be resolved with great customer support, which eliminates the likelihood of customers raising disputes.