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

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.

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

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.

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.