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Chargeback and Dispute FAQs
Chargeback and Dispute FAQs
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Written by Training BLVD
Updated over a week ago

What’s the difference between chargebacks vs. refunds?

A refund is a transaction initiated by the merchant, repaying a customer who is dissatisfied with the goods or service purchased. A chargeback is a dispute initiated by a customer, usually for a fraudulent transaction. In a chargeback, the transaction is reversed and funds are returned to the customer by the merchant’s bank. Chargebacks often incur additional fees for merchants.

What is a chargeback fee or chargeback settlement fee?

A chargeback fee, or chargeback settlement fee, is an additional fee your credit card processing company may charge you in addition to the reversed funds if they find you at fault for a chargeback. Some payment processing companies may disallow you from accepting credit cards entirely if you have an unusual amount of chargebacks on your account.

Is there a chargeback time limit?

Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. This ranges anywhere from roughly 60 to 90 days after purchase. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Check with the issuing banks or your payment processor to determine what time limits may apply to you.

Are debit card chargebacks handled in the same way?

Generally speaking, debit card chargebacks are more difficult for cardholders to dispute. If the debit transaction was processed as a credit (with a signature) then the chargeback process is similar to other chargeback processes. But if the debit card transaction was approved by PIN, cardholders have a smaller window in which fraud protection is available. Card-present debit transactions are considered the safest for merchants, which is why debit card transactions tend to be cheaper for merchants to process as well.

How do I write a clear chargeback explanation?

A clear chargeback explanation is a useful tool to help keep all of your proof of purchase/service information in order when you respond to a chargeback. Your explanation should be specific to the chargeback reason code, amount, and date of purchase. This explanation can be uploaded as an attachment. Helpful items to include in a letter are:

  • Receipts or invoices, if applicable with a signature

  • Proof of services such as a screenshot of the date & time an appointment is checked-in

  • Proof that the item was acceptable (the customer used the item, didn’t complain upon services rendered, etc.)

  • The correct recording and delivery of the customer’s CVC or AVS

What file types and sizes can I use to upload evidence?

Uploaded evidence must have an individual file size of 1MB or less, and must be in one of the supported formats:

  • pdf

  • gif

  • jpg

  • jpeg

  • png

  • tiff_

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