What must a merchant provide to the cardholder to prove a cancellation?

To prove a cancellation, a merchant must provide a cancellation code to the cardholder. This code serves as a unique identifier for the transaction that has been cancelled, offering clear evidence that the cancellation process has been successfully completed. The cancellation code can be used to confirm that the merchant processed the cancellation request in accordance with their policies and the payment processor's guidelines.

When a cardholder disputes a transaction or seeks verification of a cancellation, the presence of a cancellation code is crucial. It not only facilitates tracking the cancellation but also provides an official record that can be referenced if needed. This is particularly important in addressing any potential disputes that may arise later regarding the status of the transaction.

Other options, while they may provide some information about transactions, do not specifically confirm that a cancellation has occurred. A sales report, for instance, defines overall sales and transactions but doesn’t indicate individual cancellation status. A transaction history gives details of past transactions but lacks the specificity needed to confirm a cancellation. A customer satisfaction survey, though useful for gauging customer experiences, does not relate directly to the acknowledgment of a cancellation. Therefore, the cancellation code is essential and serves as the correct and necessary proof for the cardholder.