ChargeBack Introduction

ChargeBack means that the cardholder can apply to the bank to refuse to pay a certain transaction on the bill within a certain period of time (usually 180 days, some payment institutions may stipulate a longer period) after payment.
Due to the differences between online transactions and face-to-face transactions, no matter which transaction platform you use, as long as the cardholder uses a credit card for payment, such risks cannot be completely avoided.
For example: the cardholder purchases a mobile phone in a store and asks the card issuing bank to cancel the payment due to reasons such as not receiving the product or the product is not on the board after payment.

1. Chargeback Generation Path

2. Impact of order chargeback

Charges for chargeback orders are frozen: After a chargeback occurs, the payment for this order will be temporarily frozen by the acquiring bank until the chargeback processing is completed and settled according to the judgment result of the issuing bank.

3. Common Chargeback Types

3.1 fraudulent chargeback

Unauthorized by the cardholder: that is, the transaction is not made by the person himself, and is usually caused by the cardholder’s card loss, theft, or fraudulent swiping of the card.

3.2 non-fraudulent chargeback

1. Non-receipt of the goods: the merchant refuses to pay due to the failure to deliver the goods or deliver the goods in time.
2. The goods are not on the board or the goods are damaged: the goods received by the buyer do not match the pictures on the website or the goods received are damaged.
3. Cancellation of the order: After the buyer placed the order, he negotiated with the merchant to cancel the order, but he did not receive a refund from the merchant.

4. Common Dispute Status

4.1 Tune up

The buyer feeds back the abnormality of the order to the issuing bank, and the issuing bank will adjust the order after verification. If the adjustment is passed, it is a normal transaction. If the adjustment fails, the order will be converted into a chargeback.
Suggestions for merchants to deal with: Prepare materials and submit according to the requirements of the order transfer notice. If there is indeed an abnormality in the order, it is necessary to communicate with Payermax in advance to explain the situation.

4.2 Second chargeback

After the bank judges that the merchant has won, the buyer is not satisfied with the judgment result and initiates a second chargeback for the order by changing the reason for the chargeback.
Suggestions for merchants to respond: The second chargeback appeal method is the same as the first chargeback, and corresponding materials should be prepared according to the buyer’s chargeback reasons.

Note:

The second chargeback is an independent chargeback order. After the chargeback occurs, the same chargeback processing fee as the first payment may still be charged, and it will not be refunded regardless of the appeal result.

5. Common Dispute FAQs

5.1 Dispute Handling Process

5.1.1 How Merchants Receive Disputes

• Once a dispute occurs, PayerMax will send notifications to the email addresses bound to the merchant's Finance and Risk Control roles.

  • If you need to add new role emails, you can manage this via Setting Services → Information Management.

• Merchants can optionally integrate Dispute Integration to handle disputes via API.

5.1.2 How to Query Dispute Orders?

Log in to the Merchant Management Center (MMC) and navigate to the Dispute Management → Dispute Query page.

5.1.3 How Long Does a User Have to Initiate a Dispute?

Users can typically initiate a dispute within 180 days after the transaction occurs. The specific time limit may vary depending on card organization regulations and the type of dispute.

5.1.4 Can Users Initiate Disputes Arbitrarily?

Users must provide valid reasons for dispute that comply with the regulations of card organizations (such as Visa and Mastercard). Common valid reasons include: Fraudulent Transaction, Product/Service Not Received, Product Significantly Not as Described, Duplicate Charge, and Unprocessed Refund. The issuing bank will conduct an initial review of all requests, and applications with insufficient reasons or evidence may be rejected.

5.1.5 What Is Pre-Arbitration? Under What Circumstances Does It Occur? How Should It Be Dealt With?

Pre-arbitration is a subsequent stage in the dispute process that may be initiated when the issuing bank does not accept the defense evidence submitted by the merchant. The specific workflow is as follows:

User initiates dispute -> PayerMax notifies merchant -> Merchant submits defense materials -> PayerMax submits materials to channels -> If evidence is accepted, dispute is closed and funds are returned to merchant -> PayerMax receives case result and notifies merchant;

If the evidence is not accepted, the issuing bank may file for pre-arbitration and submit new evidence -> PayerMax notifies merchant -> Merchant decides whether to participate in pre-arbitration -> PayerMax feeds back decision to channels -> Card organization makes the final ruling -> PayerMax receives arbitration result and notifies merchant.

5.1.6 Payment Methods from Which Countries/Regions Can Initiate Disputes?

All payment methods have the potential to generate disputes. Users need to submit valid reasons and evidence to their issuing bank/e-wallet provider, and the dispute will be formally established upon successful review. The specific handling process is the same as described in Question 1.5.

5.1.7 How Long Does It Usually Take to Notify the Merchant of the Dispute Outcome?

The dispute processing cycle usually takes around 180 days. The actual duration may vary depending on the payment channel, country/region, and payment method.

5.1.8 What Is the Reason If a Dispute Remains Unresolved After More Than 180 Days? How to Follow Up?

This situation mostly occurs with non-card payment methods, due to upstream channels failing to feedback the case results in a timely manner. We will continuously follow up and actively push for the resolution of the case.

5.1.9 How to Respond If a Dispute Order That Has Already Been Processed Is Raised Again?

This situation is relatively rare and mostly occurs with non-card payment methods, where a user initiates a dispute again for the exact same order. Please simply submit your defense materials following the standard workflow.

5.2 Dispute Fees

5.2.1 What Fees Are Involved in a Dispute? Who Collects Them? Are They Refundable After Winning the Case?

When a dispute arises, a dispute processing fee will be charged, currently standardized at USD 10/case. This fee is collected by relevant parties such as payment channels and card organizations. It should be noted that regardless of the dispute resolution outcome, this processing fee is non-refundable.

5.2.2 What Is the Specific Amount of the Dispute Processing Fee? Is It a Fixed Fee?

Currently, the dispute processing fee is USD 10 per case. This fee may be adjusted in the future based on changes in payment methods and channel policies. We will notify merchants in advance of any changes and update the contract accordingly.

5.2.3 Can We Choose Who Bears the Dispute Processing Fee?

Per the contract agreement, the dispute processing fee is borne by the merchant. The specific fee amount will be clearly listed in the contract, and this clause does not support modification.

5.3 Defense Material Checklist and Replies

5.3.1 What Materials Need to Be Prepared to Handle a Dispute?

The dispute notification email already contains a specific checklist of materials. Generally, you need to prepare the following supporting materials:

• User identity information (Registered name, UID, mobile number, email, IP address, etc.)

• Transaction proof (Order details, product/service content, quantity, payment amount, currency, and user name)

• Consumption records (The user's historical undisputed top-ups and consumption logs, as well as records related to this specific transaction)

• Proof of delivery (If applicable, including logistics tracking documents, etc.)

• Communication records (If applicable, relevant chat or email interactions with the user)

• Other auxiliary materials capable of proving that the products/services were delivered as agreed

5.3.2 Are Material Templates Provided for Different Dispute Types? What Are the Focus Areas of Material Preparation for Different Dispute Reasons?

If needed, you can utilize our professional dispute defense services to obtain guidance.

The preparation focus for various types of disputes is as follows:

• Fraud disputes: Focus should be placed on providing user identity information and evidence proving that the transaction was made by the cardholder themselves.

• Product Not Received disputes: Focus should be placed on providing proof of delivery and user consumption records.

• Product Not as Described disputes: Focus should be placed on proving the consistency between the delivered product information and the order information.

5.3.3 What Language Must Be Used for Defense Materials? Do Screenshots Require a Specific Language?

To ensure a successful defense, all submitted materials (including screenshots and text explanations) must be in English. Non-English materials may prevent reviewers from accurately understanding the information, thereby directly impacting the defense outcome.

5.3.4 How to Supplement Additional Evidence If Materials Have Already Been Submitted?

It is recommended to upload defense documents via the Merchant Management Center (MMC). Once documents are uploaded, they cannot be modified. If you need to supplement materials within the reply response window, you can submit them by replying to the notification email; if the response window has expired, supplementary materials will no longer be accepted.

5.3.5 What Happens If Defense Materials Are Not Replied to Within the Specified Time Limit?

If defense materials are not submitted on time, it will be deemed that the merchant accepts the dispute claim. The case will be ruled as the merchant's responsibility, and the corresponding frozen funds will be deducted from the merchant's account and refunded to the user.

5.3.6 Can Materials Still Be Submitted If the Dispute Reply Deadline Has Passed? How Will It Be Processed?

We will attempt to submit the overdue materials to the channel. However, if the final processing deadline specified by the channel has passed, it will be treated as a failure to reply on time, and the merchant will be deemed to have accepted the dispute outcome.

5.4 Dispute Withdrawal

5.4.1 If a User Wishes to Withdraw a Dispute After Communication, to Whom Should They Apply?

The user needs to directly contact their issuing bank or e-wallet service provider to apply for a dispute withdrawal. After a successful withdrawal, please notify us. Once we verify with the payment channel that the dispute has been formally closed, we will immediately unfreeze the relevant funds.

5.4.2 How Long Does It Take to Notify the Merchant of the Outcome After a User Requests a Dispute Withdrawal? Is the Processing Fee Refunded? Is It Counted as a Win?

The merchant should notify us promptly upon learning about the withdrawal. We will notify the merchant after verifying with the channel; the specific notification time depends on the feedback speed of the channel. Please note that once the dispute processing fee is charged, it is non-refundable. However, such cases will be recorded as a Merchant Win in the records.

5.5 Dispute Results

5.5.1 If a Merchant Loses a Case, How Can the Specific Reason Be Queried?

Under normal circumstances, upstream payment channels or card organizations do not provide the specific reasons for losing a dispute case.