What is a chargeback?
A chargeback is a process that allows cardholders to dispute a transaction and request a refund from their bank. It's a protection mechanism for consumers to recover funds from fraudulent or disputed transactions.
If a transaction is identified as fraudulent, it automatically qualifies for a chargeback. This includes unauthorized transactions made without the cardholder's knowledge or consent.
When can I dispute a transaction?
☝🏼 You can only dispute a transaction when it is settled. When a payment is processing meaning the funds have not been fully transferred from the cardholder's bank to the merchant's bank. In the meanwhile, we suggest you to contact the merchant in order to cancel the payment.
What are the maximum delays to dispute a transaction?
The time to dispute a transaction can vary depending on the type of dispute:
If it concerns a commercial dispute or ATM, you have 90 days from the date of completion of the transaction to dispute it;
If it is a fraud, you have 8 weeks from the date of completion of the transaction to dispute it.
Do I need to contact the merchant before initiating a dispute?
When a transaction has been authorized by the cardholder yes, you must contact the merchant and provide documentation about the disputed transaction before initiating the dispute. Make sure you have attempted to resolve the problem directly with the merchant. The merchant has a delay of 7 days to solve the dispute. If the answer is not satisfactory or you did not receive any answer, you can claim the transaction from your app.
Why a subscription is not eligible to refund?
Subscriptions are generally not eligible for chargeback refunds because they involve agreed-upon recurring payments. When a customer signs up for a subscription, they authorize the merchant to charge their account at regular intervals. Chargebacks are designed for disputing unauthorized or fraudulent transactions, not for canceling a service or subscription that was initially authorized by the customer. To stop a subscription, the customer needs to cancel it directly with the merchant according to the subscription's terms and conditions.