In This article you will be going to know about: 


What is chargeback:

The chargeback is the transaction amount that may be debited from the merchant if the transaction:

  1. Is disputed by the cardholder
  2. Is reversed for any reason by our processor, or a buyer, or our financial institution
  3. Was not authorized or we have any reason to believe that the transaction was not authorized
  4. 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.