A chargeback is a dispute raised by the cardholder (end-user) against a specific transaction and reported to their card issuing bank. A chargeback is a feature offered by banks and card networks like Visa and MasterCard to protect buyers from unauthorised or fraudulent payments. When a cardholder files a complaint, the bank reports it to the payment partner and begins an investigation.
Chargebacks are of two types - Customer Initiated and Bank Initiated.
The owner of the card involved in the transaction.
The party who sold the goods or services being disputed.
The bank who issued the card to the cardholder.
The bank tasked with acquiring payment on the merchant's behalf.
The card brands (Visa, Mastercard, etc.) who oversee the process.
The payment gateway used to pay money.
A customer has 120 days to file a chargeback, which means the sale is reversible during that time period. However, in some cases (retrieval requests), this period may extend beyond 120 days, subject to the guidelines set by Card Networks, such as Visa, from time to time (currently 13 months).
Chargebacks represent lost revenue and a slew of other potential issues for merchants. A customer has 120 days to file a chargeback, which means that your sales are reversible during that time period. The worst part about chargebacks isn't only loss of revenue, It is the fact that having too many chargebacks can result in the loss of your merchant account.
Card networks and Banks consider chargebacks to be indicative of poor customer experiences and thus detrimental to the industry's health, so they track chargebacks and penalise merchants who receive an excessive number. The penalties may begin with fines and action plans, but the final step is account closure and inclusion on an industry blacklist.
Chargebacks occur because of miscommunication between sellers and buyers. Make sure Merchant's website or app has an accurate refund or return policy. Recording keeping of Order-related documents such as the invoice and tracking number is essential.
Chargeback is as a high priority issue to be treated due to the risk involved for both customers and merchant's bank, and we follow the process outlined below to resolve it. At OneATM we follow the below mentioned process to resolve a chargeback.
Once the merchant receive chargeback notification from OneATM's Team, the merchant review the transaction and contact OneATM's Team with the sequence of events that occurred.
If the goods/services were not provided, please review the situation and let us know if the customer is willing to accept the goods/services. If the goods or services have been delivered, please share proof of delivery, invoices, or any other authorised proof of product/service delivery.
As soon as we receive any chargeback from the bank we inform the merchant about the same via Email/Contact.
Once the Review process is over the required document has to be shared by OneATM to the banks for representation of chargeback.
For any chargeback-related queries or assistance, please contact us:
Email: [email protected]