In This article you will be going to know about:
TABLE OF CONTENTS
- What is chargeback:
- Common Chargeback Reasons
- PayTabs Chargeback Policy
- What documentation should I maintain to challenge chargebacks?
What is chargeback:
The chargeback is the transaction amount that may be debited from the merchant if the transaction:
- Is disputed by the cardholder
- Is reversed for any reason by our processor, or a buyer, or our financial institution
- Was not authorized or we have any reason to believe that the transaction was not authorized
- Is allegedly unlawful, suspicious, or in violation of the terms and conditions agreed at the time of sign up.
Once the transaction is proven to be indeed fraudulent, the Issuing bank will refund the original value to the cardholder. From the merchant's point of view, if you do not prove the transaction to be legitimate, the bank will reverse the entire value of the transaction from your PayTabs account, along with an additional chargeback fee (as mentioned in clause 11.2 of the terms and conditions).
Common Chargeback Reasons
1.Services not Provided or Merchandise Not Received:
Definition: The card issuing bank received a claim from a cardholder that merchandise or services ordered were not received or that the cardholder cancelled the order as a result of not receiving the merchandise or services by the expected delivery date.
2.Not as Described or Defective Merchandise:
Definition: The card issuing bank received a notice from the cardholder, stating that the goods or services were: ·Not the same as shown and described on the screen for Internet transactions, or as described on the sales receipt or other documentation presented to the cardholder at the time of the transaction. ·Not the same as the merchant’s verbal description for a telephone transaction· Shipped to the cardholder and received, but was damaged or defective
3.Cardholder Does Not Recognize Transaction:
Definition: The card issuing bank received a complaint from a cardholder stating that the transaction appearing on the billing statement is not recognized.
4.Fraudulent Transaction—Not Authorized by Cardholder:
Definition: A written complaint from a cardholder in regard to a card-not-present transaction, claiming that he or she did not authorize or participate in the transaction such as:·A card-not-present transaction charged to a fictitious account number for which authorization approval was not obtained
5.Refund or Credit Not Processed:
Definition: The card issuing bank received a notice from a cardholder acknowledging participation in a transaction for which goods were returned or services cancelled, but: ·The cardholder has not received a written refund acknowledgement or credit voucher from the merchant· The credit has not appeared on the cardholder’s Visa statement
PayTabs Chargeback Policy
- Once chargeback has been received, PayTabs will send a notification to the merchant requesting to provide the required documents within the next 3 days, to reverse the chargeback
- In case of non-fulfillment of required documents or if documents received after due date (within 3 days), the merchant’s balance will be debited equivalent to the amount of the disputed transaction
- A fee of USD 25.00 will be applicable for every chargeback raised by Issuer bank. PayTabs shall debit this fee from the merchant’s account Once the chargeback is received for a particular transaction, the corresponding chargeback amount shall be held back immediately to a Chargeback Reserve Balance for 30 days. The merchant will need to send the required documents (refer to section 3) via email to [email protected]. If the case is resolved, then the Chargeback Reserve Balance amount will be returned to the merchant’s available balance. If the case is unresolved (non- resolution of chargeback) or the merchant has failed to submit the required documents, a second chargeback may be raised against the merchant or it may result in a debit to the merchant’s available balance, equivalent to the transaction amount
- If the merchant is not able to submit sufficient documents as per our documentation policy (refers to section 3) to reverse the chargebacks for Two successive requests, PayTabs would immediately suspend the merchant’s account and hold all the funds for 120 days
- Merchants that reach 1% chargeback ratio* or Four chargebacks in a month (whichever comes first) are liable for suspension* Chargeback ratio is the total value of chargeback to the total value of sale in the past 60 days
- Submitting only an Authorization Email as a proof of purchase is strictly not allowed and shall be deemed as non-compliance with the Chargeback policy
- Based on your nature of business, any failure to provide the required documents (refer to section 3) shall result in one or more of the following repercussions :
·Penalty for Chargeback and Financial Loss
·Account Suspension
·Increase of Holding Period
·Increase of Commission Rate
·Any other action PayTabs or the Acquiring Bank may deem fit
What documentation should I maintain to challenge chargebacks?
The following documents need to be submitted depending on the nature of your business:
1.Non-physical Products & IT Support Services
2.Physical Product -If a physical product was shipped
3.For Travel or any booking-related services
Non-physical Products & IT Support Services
1.Cover Letter: A summary of the provided documents pertaining to the disputed transaction
2.Proof of Delivery of Service or Digital Products Document should contain the following :
a. Any server or activity logs showing proof that cardholder has accessed merchant’s website requesting for service or to provide IT Support. This includes IP address, corresponding time stamps, cardholder’s email ID and registered name
b. Logs that the cardholder has downloaded the purchased digital product
or software
3.Full Description of the purchased services containing merchant’s terms and conditions, refunds and cancellation policy
4.Email communication between merchant and card holder about the service
5.Signed Service Agreement / Contract digitally signed using DocuSign or other similar software
6.Copy of valid ID of the cardholder, if any..
Note: Recorded calls will not be honored while representing chargebacks. All the above mentioned documents are mandatory.
Physical Product -If a physical product was shipped:
1.Cover Letter: A summary of the provided documents pertaining to the disputed transaction
2.Proof of Product Delivery
a. Shipment receipt containing shipment details: destination address, name of recipient as declared in the order or invoice details
b. Tracking number or transit details
3.Product description with specification of the purchased goods or products containing the merchant’s terms and conditions, refunds and cancellation policy
4.Email communication between merchant and card holder about the product
5.Copy of valid ID of the cardholder, if any...
Note: Recorded calls will not be honored while representing chargebacks. All the above mentioned documents are mandatory.
For Travel or any booking-related services:
1.Cover Letter: A summary of the provided documents pertaining to the disputed transaction.
2.Proof of Booking or Service Fulfillment :
a. E-tickets (with confirmation code and e-ticket number)
b. Confirmation of agreement of booking by the cardholder
3.Passengers or guests names
4.Checked-in and checked-out records of the guests
5.Description of booked flights or reservations made by cardholder
6.Copy of valid ID of the cardholder (e.g. passport) along with the copy of the credit card showing the last 4-digits only and the name of the cardholder
Note: Recorded calls will not be honored while representing chargebacks. All the above mentioned documents are mandatory.