A chargeback occurs when a debit or credit card transaction is reversed. This may happen if a cardholder disputes a payment, claiming it was unauthorised or incorrect.
In some cases, these disputes might even be fraudulent. For merchants, a chargeback can mean not receiving payment for goods or services that have already been delivered.
This guide will help you understand the types of chargebacks, how to handle them, and how Ordermentum supports you in managing chargebacks effectively.
Table of Contents
Types of Chargebacks (1 min)
How to Handle Chargebacks (2 mins)
Timelines to Remember (1 min)
Types of Chargebacks
Understanding the types of chargebacks can help you better manage or even prevent them:
Fraud-Related Chargebacks
Unrecognised Transactions: The cardholder does not recognize a charge on their statement.
Unauthorised Transactions: The cardholder claims a transaction was made without their consent.
Non-Fraud-Related Chargebacks
Duplicate Charges: The cardholder was billed multiple times for the same transaction.
Undelivered or Defective Goods/Services: The cardholder did not receive their purchase, or it was defective.
Cancellation Issues: Charges persisted after the cardholder requested cancellation.
Not as Described: The goods or services provided differed from what was advertised.
How to Handle Chargebacks
The evidence needed to contest a chargeback may vary:
Receipts and order/delivery confirmations.
Records of previous transactions.
Documentation of communication with the customer.
Photographs of the shipped items.
Promptly gathering and providing this information is crucial in defending against chargebacks.
Will Providing Evidence Always Resolve the Chargeback?
Not necessarily. The decision ultimately lies with the bank that issued the card. They will review the submitted evidence, and if deemed sufficient, may reverse the chargeback. Remember, many chargebacks succeed simply because the necessary proof wasn't provided promptly.
Timelines to Remember
Direct Debits: You have 2-3 business days before the chargeback is processed.
Credit Card Chargebacks: There are 7 business days to respond before it is processed.
How Ordermentum Supports You With Chargebacks
Different card companies have unique processes for handling chargebacks. It can take between 30 to 90 days for us to receive a chargeback notification. Once notified, we immediately contact you by email and phone to discuss your options. If you choose to contest the chargeback, we'll guide you through gathering the necessary evidence.
While managing chargebacks is ultimately your responsibility, Ordermentum is here to make the process as straightforward as possible. We handle communications with banks and processors, and advise you on the steps needed to effectively resolve the issue.