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Chargeback Prevention

1. Introduction

1.1. What is SignatureLink?

SignatureLink is a web-based technology centered on the real-time capture of electronic signatures. The capture device (Signature Pad) is a flash-based Web form that can be embedded within a web page or document file. Upon successful validation of a Signature Pad transaction, the signer’s signature is stored as an encrypted image. A barcode may optionally be attached to the signature image.

SignatureLink offers query tools for Merchants to generate reports on Signature Pad usage and to view stored signatures and agreements.

SignatureLink technology can increase efficiency in human-based authorization procedures via online methodologies as well as adding an additional security layer to point-of-sale agreements such as online credit card purchase transactions. SignatureLink, Inc. is a one-source shop for authoring, storing, modifying, maintaining and authorizing online contractual agreements.

This will facilitate:
  • Chargeback Reduction
  • Agreement Process Cycle Time Efficiency
  • Fraud Prevention / Increased Security Measures
  • Documentation Access Efficiency (24/7)
  • Remote Contributions from Multiple Parties, thereby streamlining workflow
  • Online Document Management (Authoring, Editing, Managing, etc.)

2. Product Specifications

2.1. Authorization and Chargeback Flows

This section represents the flows of authorization and chargeback processes.

2.1.1. Standard Authorization Flow

In the standard authorization flow the merchant’s technology communicates directly with the gateway. The SignatureLink technology captures the signature and assigns a unique signature id with the transaction. The signature id is transformed into a barcode which is embedded into the electronic signature. Additional data related to the transaction can be passed to the signature server from the signature pad; i.e. order number, customer information, customer id, et al.

Standard Authorization Flow - Today's Solution - Merchant communicates with the gateway


The consumer provides the standard credit card payment information (i.e. cc#, expiration date and address) and signs the signature pad.
  1. The signature is sent to the Signature Server over a secure Internet connection. The servergenerates a unique identifier and barcode. Then the signature, barcode, their IP address and additional data are embedded into the Terms and Conditions agreement. The agreement is encrypted and stored on the server.
  2. The unique identifier is sent back to the signature pad over the secure connection.
  3. The signature pad submits the form with the unique signature id to the Merchant’s server or designated URL.
  4. The merchant sends a request for authorization over a secure Internet connection.
  5. The gateway validates the payment information, and then sends a request for authorization.
  6. The processor sends the transaction to the card association (CA).
  7. The card association routes it to the issuing bank for the consumer’s credit card.
  8. The issuing bank approves or declines the request.
  9. The CA routes the response back to the processor.
  10. The processor sends the auth response back to the gateway.
  11. The gateway sends the auth response back to the merchant.
  12. The merchant displays the appropriate web page and message to the consumer.


2.1.2. Alternate Authorization Flow 1

In the first alternate flow the signature pad submits the transaction to the gateway for authorization over a secure connection. When the request has returned from the gateway the signature pad then sends all transaction data to the merchant. The merchant does not have to communicate with the gateway. All other functionality of the signature pad and server are the same as in the Standard Authorization Flow.

Alternate Authorization Flow 1 - signaturepad acts as a sub-gateway

The consumer provides the standard credit card payment information (i.e. cc#, expiration date and address) and signs the signature pad.
  1. The signature is sent to the Signature Server over a secure Internet connection. The server generates a unique identifier and barcode. Then the signature, barcode, their IP address and additional data are embedded into the Terms and Conditions agreement. The agreement is encrypted and stored on the server.

  2. The unique identifier is sent back to the signature pad over the secure connection.

  3. The signature pad sends a request for authorization over a secure Internet connection.

  4. The gateway validates the payment information, and then sends a request for authorization.

  5. The processor sends the transaction to the card association (CA).

  6. The card association routes it to the issuing bank for the consumer’s credit card.

  7. The issuing bank approves or declines the request.

  8. The CA routes the response back to the processor.

  9. The processor sends the auth response back to the gateway.

  10. The gateway sends the auth response back to the signature pad.

  11. The signature pad submits the form with the unique signature id and authorization to the Merchant’s server or designated URL.

  12. The merchant displays the appropriate web page and message to the consumer.


2.1.3. Alternate Authorization Flow 2

In alternate authorization flow 2 the signature pad submits all the data to the signature server. The server then submits the transaction to the gateway for authorization over SSL. When the request has returned from the gateway the signature server then updates the order record with the transaction id and authorization code. This will allow the gateway and processor to retrieve the electronic signature from the signature server using the transaction id or authorization code. All other functionality of the signature pad and server are the same as in the Standard Authorization Flow.

Alternate Authorization Flow 2 - signaturepad acts as a sub-gateway


The consumer provides the standard credit card payment information (i.e. cc#, expiration date and address) and signs the signature pad.
  1. The signature and all of the order data is sent to the Signature Server over a secure Internet connection. The server generates a unique identifier and barcode. Then the signature, barcode, their IP address and additional data are embedded into the Terms and Conditions agreement. The agreement is encrypted and stored on the server.

  2. The signature server sends a request for authorization over a secure Internet connection.

  3. The gateway validates the payment information and then sends a request for authorization.

  4. The processor sends the transaction to the card association (CA).

  5. The card association routes it to the issuing bank for the consumer’s credit card.

  6. The issuing bank approves or declines the request.

  7. The CA routes the response back to the processor.

  8. The processor sends the auth response back to the gateway.

  9. The gateway sends the auth response back to the signature server.

  10. The unique identifier and authorization is sent back to the signature pad over the secure connection.

  11. The signature pad submits the form with the unique signature id and authorization to the Merchant’s server or designated URL.

  12. The merchant displays the appropriate web page and message to the consumer.


2.1.4. Standard Chargeback Flow

In the standard chargeback flow the merchant requests the terms & conditions agreement associated with the transaction. The signature server sends the signed agreement to the merchant. The merchant uses the agreement as a proof of sale when disputing the chargeback.

Standard Chargeback Flow


  1. A cardholder disputes the transaction and contacts their issuing bank with information supporting their dispute.

  2. The cardholder’s issuing bank charges the transaction back to the merchant bank electronically through the appropriate card association.

  3. The card association reviews the eligibility of the transaction for chargeback, and electronically forwards it to the merchant bank.

  4. The merchant bank receives the chargeback and resolves the issue, or forwards the chargeback to the merchant to provide adequate proof of sale. Some of the data sent to the merchant may include:

    Transaction ID Transaction Amount
    Credit Cardholder Information Transaction Date


  5. The merchant uses the signature server web interface to access the terms & conditions agreement associated with the transaction. Merchant looks up signed agreement on signature server based on a variety of criteria including:

    Customer Name Transaction ID
    Customer ID Order Number
    Email Address SignatureLink Agreement ID
    Signup/transaction Date IP Address


  6. The signature server returns the terms & conditions agreement with the embedded electronic signature and barcode associated with the transaction. The terms & conditions agreement may include the following information:

    Customer Name Transaction ID
    Customer ID Order Number
    Email Address SignatureLink Agreement ID
    Signup/transaction Date IP Address
    Order Items Order Amount


  7. The merchant re-presents the chargeback to their merchant bank with the “Chargeback Package”. The chargeback package shall consist of:


  8. The merchant bank forwards the Chargeback Package to the appropriate card association.

  9. The card association forwards it to the issuing bank.

  10. The cardholder’s issuing bank re-posts to the cardholder’s account.


NOTE: Cardholders initiate American Express transaction disputes directly through American Express, rather than an issuing bank. These chargebacks will not include an issuing bank in the chargeback process flow.

SignatureLink - Your solution for Chargeback Prevention.



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International PCT Patent Pending and Patent Pending #60/593210, 60/828597