A Sales Draft Request (SDR) is a request from the card holder’s issuing bank (issuer), requesting copies of a signed sales receipt or other suitable documentation, to prove the transaction is valid. The merchant must respond to an SDR within strict timelines set by the card companies. If the issuer does not receive a response by the set deadline, they have the right to Chargeback the transaction for non-receipt of documentation.
The customer’s credit card issuer notifies Bambora's bank about the SDR in question. The issuer provides the bank with limited information relating to the transaction: dates, card numbers, and amounts.
The issuer does not provide the cardholder name or state a detailed reason for the SDR. The issuer can include a short description or code to indicate the cause of the dispute. For example, transaction not recognized, duplicate processing, and so on.
Bambora receives notice of the dispute from its bank. The transaction is marked as Disputed and the merchant is informed by email. A Case Number is included to use a reference, with a summary of the transaction details—for security reasons only the last four digits of the customer's credit card number are included.
After a transaction is marked as disputed, a refund cannot be issued.
To avoid a chargeback, the merchant must follow up with the credit card company (e.g. Visa or MasterCard) within two weeks from the time they are notified by Bambora. The bank requires a copy of the sale with a description of goods, a mail order schedule, and proof of delivery (preferably signed by the cardholder). Merchants should also include a transaction receipt showing the transaction was Internet-based.
The more information supplied at this stage, the more likely the merchant will win the dispute and avoid a chargeback. Be sure to reference the Case Number on all documents provided.
The issuer reviews the merchant’s documentation and either resolves the issue with the customer, or proceeds to a chargeback.
For assistance, send a message to the Bambora Customer Experience Team or
call 1-833-BAMBORA (226-2672)
Sales draft requests vs. chargebacks
The dispute process begins when a customer contacts their credit card-issuing bank and notifies them that a questionable transaction has occurred with a merchant's business.
The card-issuing bank determines which business processed the transaction. The card-issuing bank then contacts the bank that holds the online merchant accounts for the business.
The merchant account provider (Bambora) contacts the merchant and lets them know a dispute has been launched.
Card-issuing banks have different ways of dealing with customer-initiated disputes.
- Sales Draft Requests (SDRs): Often, an SDR is the first step in the process. SDRs provide merchants with an opportunity to respond to an issue before a debit is applied to their account.
- Chargebacks: In other cases, the bank proceeds straight to a Chargeback, debiting the merchant bank account as soon as the dispute is processed.
For assistance, send a message to the Bambora Customer Experience Team or call 1.888.472.0811