TABLE OF CONTENTS

What is a chargeback (dispute)? 



    A chargeback (dispute) is a procedure of transaction contesting initiated by the Issuer (with a view of customer rights protection), following payment amount withdrawal from the merchant (by the acquirer) and returned to the cardholder. A chargeback is initiated when the customer contacts the issuing bank to request a payment reversal. You could avoid many of these chargebacks. The more you know the proper procedures, the less likely you'll run into problems that might result in a chargeback. 


For each chargeback processing respective fee applicable. Regarding the fee, please kindly refer this issue to your account manager. You have to monitor and respond to these disputes as quickly as possible.



What is a chargeback rate?

    The chargeback rate shows the ratio between the total number of transactions and the total number of chargebacks (disputes) the merchant receives.

When a merchant exceeds these thresholds, they are placed on a monitoring program. 



What are Chargeback rates and limits?

The exact allowed rate often depends on various factors, like card scheme, chargeback history, type of busyness. 


     VISA

        0.9% chargeback ratio and 100 chargebacks.

     Mastercard

        1.5% chargeback ratio and 100 chargebacks.


Explanation: If your chargeback ratio is 10%, but you received less than 100 chargebacks, or rate is 0.05%, and you have more than 100 chargebacks - you didn't breach your limit. 



Kindly note: Visa and Mastercard aren't the only parties involved here. Acquiring banks can determine what's defined as an "acceptable" chargeback rate, too.


Can we disagree with chargeback?


    Yes, you can challenge disputes where you have evidence that the transaction is valid or the transaction amount is higher than the original charge. However, if you debate the chargeback, it will move through the entire flow described in this article. 
 If you want to dispute the chargeback, you should send documents with compelling evidence to support@solidgate.com. If you do not provide proof until the chargeback deadline, we will automatically accept the dispute. Requirements for documentation stated below: 


  • The total quantity of pages within one case is no more than 19 pages.
  • The format of all pages within one case should be either "portrait" format only or "landscape" format only.
  • All pages should be A4 size, other sizes do not acceptable.
  • Acceptable file format — DOCX.
  • For most chargeback/pre-arbitration/retrieval request decision provision – 11 days! After shown time frame chargebacks and pre-arbitrations will be accepted (lost).
  • You could use the example of the document to create your evidence. 


Please find more information here.



What is Auto-Representment?

    Solid will automatically initiate the dispute process for applicable chargebacks with no action needed on your part, but we don't guarantee a successful return of the money.


These chargebacks include: 

  • Already refunded transactions, where the refund occurred before the chargeback date.
  • Transactions that were proceeded with a liability shift.
  • Chargeback, which was processed using Google Pay payments.
  • The 16th fraudulent chargeback on the same card for Mastercard.
  • Chargebacks with the technical errors that invalidate them (duplicate chargeback for one order, chargeback outside the applicable timeframe).


Chargeback Reasons


    In the article below, you will find all the dispute reason codes divided by scheme/issuer and category with the description provided: Chargeback reason codes.