Important things to know about chargebacks
What is a chargeback?
A chargeback is when funds are returned directly to a customer account after they dispute a payment they have made via a card.
Chargebacks can happen for several reasons but most often when a customer thinks a card payment was fraudulent, services were never provided, or merchandise was not received.
How do I submit supporting defence evidence?
Email us at disputes@cashflows.com or chargebacks@cashflows.com.
If I win the dispute/chargeback, will I be refunded the chargeback amount and the dispute fees?
If you successfully defend against a chargeback/dispute we will credit the dispute/chargeback amount back to your account, however, the dispute fees are non-refundable as this is taken by the scheme (Visa or Mastercard).
Does receiving multiple chargebacks affect my company?
Yes, receiving too many chargebacks can incur fines set by the schemes and can place you as a high-risk merchant.
Can I prevent chargebacks?
Yes, although disputes and chargebacks can be inevitable, there are ways to potentially mitigate the number of disputes/chargebacks received, for example:
- If you have given the cardholder a timeframe for goods and services.
- Make sure you stick to the time, if there are any delays for any reason make sure you provide clear communication to the cardholder.
- Be available to answer customer questions.
- Regularly update your point-of-sale (POS) software.
- Be clear with product descriptions.
- Have a clear return and refund policy.
- Create clear terms and conditions that outline cancellations and refund policies.
Are there dispute fees?
Yes, dispute fees are individually set at the time of joining Cashflows. Which are available to be reviewed at any time on the merchant account and pricing plan.
There is also a €500 optional fee if the initial re-presentments and pre-arbitration fail. This fee is placed into security whilst the arbitration is ongoing, if the claim is successful the €500 payment will be reimbursed, if not the fee will not be refunded.
What constitutes as compelling evidence?
Documents commonly submitted as compelling evidence include:
- Receipts of purchase, especially if those receipts have signatures.
- Shipping records and delivery confirmation.
- IP address information.
- Correspondence with the customer.
- Records of any other identity verification methods used.
Can I contest the schemes final decision (arbitration) if I am not successful?
No, once the scheme has given their final decision, we are unable to proceed any further with the claim and this will be a loss.
You can take legal action outside of the dispute/chargeback process, however there is no guarantee you will be successful and could also incur further fees.
Can I see the issuers dispute declaration before sending my rebuttal?
Yes, if you send us an email once you have received the dispute notification asking for the details of the dispute, we will send you all relevant documentation regarding the claim.
If the dispute is out of time, can I still defend against the claim?
Unfortunately, no, the schemes are strict on their timeframes and once the time limit has passed, we are unable to action.
Are disputes/chargebacks expensive?
Yes, once a chargeback/dispute is raised you will be temporarily debited the chargeback value pending the claim outcome, there are also fees to be aware of and if the claim goes to the final arbitration stage (this is optional) you will be debited €500 which will only be refunded if you are successful.
How do you handle and respond to chargebacks?
If you have received a chargeback notification, you should review all details of the claim and start building compelling evidence to defend against the claim, once you have gathered your evidence, we request you send it to us within 14 calendar days of notification.
If I have not provided the goods/services and a chargeback is raised, what should I do?
The best course of action would be to contact the cardholder and attempt to resolve this, or you can accept the claim and the cardholder will keep the chargeback funds.
How do I know if my supporting defence evidence is sufficient?
Once you have submitted the compelling evidence to us you will receive one of two emails, if we need further evidence then we may request more or if we deem the evidence sufficient, we will email you to advise that we have submitted the evidence to the issuer.
How do I know if I have won or lost a dispute case?
If you are concerned on the status of your case, then you can ask us for an update. However, we will send you an email letting you know if your defence has been successful or unsuccessful and let you know the next steps.
What are disputes, chargebacks, retrieval requests (American Express only), and ‘High Risk Warnings’ (also known as Visa TC40 message/Mastercard SAFE message)?
A dispute/chargeback is where the cardholder has contacted the issuer due to a complaint with a transaction and has been unable to resolve with the merchant. The issuer will raise this through the scheme (Visa/Mastercard/American Express) to which we will notify you to provide compelling evidence.
A retrieval request is only used by American Express, and it is the issuer requesting more information regarding the transaction.
A high-risk warning is raised by the issuer when the issuer flags a transaction as fraudulent. The merchant will be notified of the flag and will be able to refund the transaction to save further charges if a dispute/chargeback is raised.
May I issue a refund for a transaction where I have received a dispute/chargeback?
In short, no. If you were to refund a transaction after a dispute/chargeback has been raised the cardholder will receive two credits. One from the issuer once the chargeback has been raised and one from the refund. Which means you will be debited twice.