Summary

A chargeback occurs when a customer disputes a charge on their card claiming issues like fraud, unauthorized transactions, or product/service dissatisfaction. The customer's bank requests the merchant to submit evidence that the transaction was valid and then investigates the claim. Once the customer has submitted the claim, the funds are held from the merchant until the bank makes its decision. If the transaction is found to be legitimate then the funds are released back to the merchant, otherwise the funds are refunded back to the customer.

The disputes page displays all chargebacks for an account and the current status of each one. It also allows evidence to be submitted which will result in a "Won" or "Lost" result.

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Note: The terms 'Dispute' and 'Chargeback' are sometimes used interchangeably depending on what the merchant may be most with familiar with. In actuality, a dispute is the process by which a customer challenges a charge and a chargeback is what occurs when the funds are returned.

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<aside> <img src="/icons/unlock_gray.svg" alt="/icons/unlock_gray.svg" width="40px" /> Merchant Permission: Manage Disputes

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<aside> <img src="/icons/unlock_gray.svg" alt="/icons/unlock_gray.svg" width="40px" /> Super Admin Role: Risk Analyst

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Availability

All other brands will be available in April 2025.

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Note: This will only be available for cloud-based software’s. Any of our On-Prem POS’s will not have this available.

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Processor

Dispute Process

The dispute process is provided to allow Cardholders a means of reporting any fraudulent, incorrect or abusive charges on their credit or debit cards. Find the typical process below:

• Transaction occurs that is questionable or fraudulent.
• Cardholder reports the charge to their card issuer as incorrect or fraudulent. The Cardholder has approximately 60 days from the statement date to file the claim.
• Investigation by the card issuer, the issuer reviews the claim and gathers evidence from the cardholder. The issuer must acknowledge the dispute within 30 days, and complete the investigation within two billing cycles (not to exceed 90 days).
• Issuer contacts the merchant via the processor to notify them of the dispute. The merchant then has the opportunity to respond and provide evidence. Merchants have 20 to 30 days to respond to the dispute.
  • The funds that are in dispute are debited from the merchants account and held in reserve pending the outcome of the investigation.
• Issuer’s decision is based on the evidence from both the cardholder and the merchant, the issuer will decide whether the dispute is valid. The issuer has 60 to 90 days, this is typically completed with in the same investigation time period.
  • If the cardholder is found correct the funds are returned to them, and the funds are refunded by the merchant.
  • If the merchant is found to be correct, the funds are released back to the merchant from the reserved amount.