In this article
- General Overview
- Chargeback Definition
- What is the procedure for dealing with chargebacks at PayMe
- Several steps merchants can take when handling chargebacks
- FAQ
- Is there a processing fee for the chargeback?
- Why I can't see the transaction amount in the last transfer?
- If I got a notification that the dispute has been canceled, how long will it take for the transaction amount will be reflected in my account?
General Overview
Chargeback is a dispute initiated by a customer who believes that they have been wrongly charged for a product or service.
If a chargeback occurs, businesses should respond quickly, provide evidence to support their case, and negotiate with PayMe to try to recover lost funds.
Merchants can use 3DSecure to prevent chargebacks from occurring in the first place.
Chargeback
A chargeback is a transaction reversal process that allows consumers to dispute unauthorized or fraudulent charges, a defective product or service, or a failure to receive a product or service, on their credit card or debit card.
When a chargeback is initiated, the funds are returned to the customer's bank account and taken from the merchant's bank account. The chargeback process is meant to protect consumers from fraudulent charges and ensure that merchants are held accountable for their actions.
There are several steps merchants can take when handling chargebacks at PayMe
When a cardholder initiates a chargeback, the issuing bank or financial institution will investigate the transaction and determine whether or not it is valid. If the bank determines that the transaction was unauthorized or fraudulent, or that the merchant failed to provide the promised goods or services, the bank will reverse the transaction and return the funds to the cardholder's bank account.
There are several steps merchants can take when handling chargebacks:
1. Investigate the reason for the chargeback:
Merchants should carefully review the chargeback notification and gather any relevant information, such as transaction records, customer communication, and proof of delivery or service.
2. The card issuer updates the acquiring bank about the Chargeback.
3. The acquiring bank updated PayMe.
PayMe acts as an intermediary between the merchant and the card issuer and is responsible for processing the transaction and managing chargeback disputes.
4. PayMe notify the merchant of the chargeback and provides them with the relevant information, such as the transaction amount, and the date of the transaction.
The merchant will receive this information via email.
To deal with a chargeback, the business owner has 2 main options:
1. Contact the client to remind him of the deal they made in the hope that the client will contact his manufacturing credit card company and inform them that he is canceling that chargeback/inquiry.
In this case, the information will be forwarded to us via the credit card company and we would refund the member's account wallet for the amount that was charged back to him due to the chargeback.
2. Reply PayMe with support documents for the Chargeback transaction:
The merchant's response should include evidence that supports their case, such as proof of delivery, a record of customer communication, or evidence of the customer's use of the product or service.
The chances of successfully canceling the chargeback are higher when there are more relevant documents that imply the transaction was done properly.
PayMe will submit this information to the card issuer through the acquiring bank on behalf of the merchant. The card issuer will then review the information and decide whether to uphold or reverse the chargeback.
The time it takes for a card issuer to review a chargeback and make a decision can be around 60
days.
How to upload and send files to the credit card company:
Merchants need to respond and provide accurate and complete information when disputing chargebacks, as failing to do so can result in the chargeback being upheld and the funds being permanently removed from the merchant's account.
3DS - A Payer authentication tool for disputes prevention:
The leading credit card companies in the world have led a technology-based reform that provides a significantly useful tool for business owners to upgrade their security level and help them to deal with chargebacks and transaction inquiries. This system is called a "safe shopping/transaction system".
This system validates the identity of the credit card holder:
The cardholder is required to verify his identity while the purchase, by typing a password which is sent to him simultaneously. This password is being authenticated via the credit card companies' servers. After the validation process, the client's Internet transaction is forwarded for proceedings with the normal and secure transaction process.
We offer such a service of a "safe shopping/transaction system" called 3DS. For more information, please click here - 3DSecure - Anti-fraud app
FAQs
Is there a processing fee for the chargeback?
There is a chargeback processing fee that is charged by the acquiring bank to the merchant for each chargeback that occurs. This fee is 35 NIS plus VAT in the case of an Israeli card and 22$ USD plus VAT in case of a foreign card or 15 Euros plus VAT in the case of an Israeli card per chargeback.
The chargeback processing fee is usually deducted from the merchant's PayMe account.
Why can't I see the transaction amount in the last transfer?
When a chargeback occurs, the amount of the disputed transaction is temporarily held by the acquiring bank until the dispute is resolved.
If I got a notification that the dispute has been canceled, how long will it take for the transaction amount will be reflected in my account?
If the chargeback is canceled or reversed in the merchant's favor, the funds will be released back to the merchant's account within 14 business days.
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