Chargeback Guide

Assists Merchants in hassle free transactions

What exactly is a Chargeback?

“Chargeback”, as termed in lay man’s terms, is a transaction reversal against a disputed transaction raised by the cardholder (end-user), and reported to their card issuing bank.

A chargeback is a tool provided by banks and card networks such as Visa & MasterCard to serve as a consumer protection against fraudulent activity.

Once the cardholder reports a disputed transaction, the card issuing bank reports the same to fonePaisa which dynamically  initiates an investigative procedure to settle the raised dispute.

Purpose of Chargeback?

There are various causes of chargeback against a disputed transaction. The fear of chargebacks helps the merchants stay transparent with their consumers

In general, chargebacks are associated with underrated consumer service/product or sub-standard service delivery experiences. Chargebacks are sought if the consumer suspects fraudulent activity or transaction on their card.

Why avoid Chargebacks?

Chargebacks are best avoidable, as it entails banks and card networks tagging your account as a fraudulent/high risk account, thus tarnishing your image. Generally, a consumer has a time period of 120 days to file a chargeback dispute request, which translates that the sale transactions are reversible for that time period.

A considerable number of chargebacks can cause the banks to hold remittances for the business account . In the worst case scenario it could impose a ban of online payment services upon the particular business.

Let’s understand the process to resolve a chargeback?

Chargebacks as it entails legal issues must be flagged as high priority issues with the involvement of risk teams of both the customer’s bank as well as our partner banks. At fonePaisa, we have a streamlined process to settle disputes/chargebacks.

Notification about the dispute

Guaranteed notification to our consumers by email/telephone about the dispute raised, mentioning the payment ID and the causes of chargeback, if provided by the bank.

Review the chargeback

One can represent the chargeback by reviewing the chargeback and bringing out  to us the sequence of events that took place.

In case of non delivery of the goods/services , consumers can review the issue and inform us of the  willingness to accept the goods/services.

Consumers can share the proof of deliveries, invoices, any other authorised proof of product/service delivery, in case the goods/services have been provided.

In case of a duplicate payment , inform us so that we can initiate the process of refund with the cardholder’s bank.

Share Requisite documents

Feel safe to share all the documents as per the requirement of the bank with us and it will be our onus to represent the dispute on your behalf.

Generally banks give a window of 7 working days to represent a chargeback. Failure to do so within the specified time period will entail increased number of chargebacks lost by you.

How to avoid Chargebacks?

As already brought out, majority chargeback issues crop up due to void in communication between the buyer and the seller. Certain user friendly tips to be bone in mind to avoid chargebacks.

Transparent Return Policy

Ensure that return policies of goods/ services are clearly spelt out on the website

Constant & Clear Communication

Consumers to be kept updated regarding status of their orders

Consignment/ Service Delivery proofs

Sharing of tracking numbers, invoices and all other details, docs and references of your order with your customers Sign Up with fonePaisa for a seamless digital transaction

fonePaisa

fonePaisa is the only payments solution in India which allows businesses to accept, process and disburse payments with its product suite. It gives you access to all payment modes including credit card, debit card, net banking, UPI and popular wallets including JioMoney, Mobikwik, Airtel Money, FreeCharge, Ola Money and PayZapp.

Manage Your marketplace, automate NEFT/RTGS/IMPS bank transfers, collect recurring payments, share invoices with customers – all from a single platform. Fast forward your business with fonePaisa payment gateway.

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