Chargebacks

A chargeback. Now what?

Unfortunately. Besides nice, happy customers, as a business owner you also have to deal with angry or even fraudulent customers. This can result in chargebacks. In this article you will read all about chargebacks and how we at Pay. work with you as a business owner to deal with them.

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What are chargebacks?

A chargeback is a recovery of a payment that was made using a credit card or other payment method. It is a way for customers to reclaim what they have paid when they are not satisfied with a product or service they have purchased or if they feel they have been ripped off in an unethical way. A chargeback is often done when the "normal" route of returns or filing a complaint has not worked. Up to 120 days after the purchase, a consumer can still request a chargeback.

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Chargebacks requests.

Chargebacks can be requested by the customer from their credit card company or bank. If the chargeback is approved, the money is refunded to the customer and the company can be fined for not meeting its obligations. Chargebacks can have a big impact on a business, especially if they occur frequently. Too many approved chargebacks can cause a credit card company to blacklist your business, making it impossible to receive credit card payments any longer. Therefore, it is important to take customer complaints seriously and try to resolve them before they lead to chargebacks.

What should you do if you receive a chargeback?

If a consumer disputes a credit card payment, it is up to you, the merchant, to prove that the consumer actually made the transaction and received the products or services. If you fail to do so, the transaction amount will be withheld and the consumer will be refunded, while you will have to pay chargeback fees to the credit card company.

Chargebacks can always incur costs, even if the merchant is fully within their rights. Therefore, it is important to have good communication with the customer and good support for any complaints.

If a consumer performs a chargeback without a valid reason, the cost can be passed on to the customer, but it must be in the terms and conditions that the customer approved at the time of purchase.

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Prevent fraudulent transactions and chargebacks.

At Pay. we do everything we can to prevent fraudulent transactions and chargebacks. For example, we offer the in-house anti-fraud module VERIFY, which helps protect your business against fraud. And also our fraud team is ready to support you in countering fraud.

Another great way to combat fraudulent transactions and chargebacks is by using our 3D secure 2.0 feature. This requires customers to confirm their identity during the payment process. And so a consumer can never request a chargeback based on the reason "it wasn't me.

Help from Pay. on chargebacks.

A chargeback can be disputed. The business owner must then provide evidence and a brief explanation in English making his objection clear. This information will be used by outside parties to make a judgment. To maximize the chances of success for you as an entrepreneur, we are happy to help you with this.

Important: If your organization receives a chargeback, you will receive email from Pay. You have up to seven days from this date to challenge a chargeback.

Follow these steps:

  • Check if you have already contacted the customer about this transaction and possibly about the chargeback.
  • Still try to contact them if you haven't had contact yet.
  • Check carefully the reason for the chargeback.
  • Write a short objection in English
  • Upload documents, images and screenshots as evidence.
  • You offer the chargeback to Pay. for dispute.

If you provided incorrect information, we may not forward your request to the cardholder's bank. Furthermore, we check that it is written in English and is relevant. If necessary, we translate it or request additional information.

If all the information is correct, we forward it to the acquirer to eventually reach the executing bank. Then the waiting begins. In some cases there is no response, but we only receive the payment again. Then the process is complete. In other cases, we receive a message of rejection or additional questions. Naturally, we then forward these to find the best answer together. Sometimes no message from the bank is received.

If your objection to the chargeback is rejected by the bank or if we receive no response from the bank during a period of two months, we consider the case closed. If the bank has not withdrawn the chargeback, you can then appeal for a period of 14 days after the case is closed. Therefore, if the chargeback is revoked, the money is yours.

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