Dispute resolution

What is a dispute and how to handle it?

If you are new to the online payments business, this information will be very important to you.

A cardholder may dispute a transaction up to 14 months after it was captured through the bank that issued the card (issuing bank).

The issuing bank has a formal process in which:

1. asks the cardholder the reason for the dispute.
2. investigates if the cardholder's claim is legitimate.

Since the cardholder is a customer of the issuing bank, the bank tends to give the cardholder the benefit of the doubt to ensure that their customer is satisfied.

If the cardholder simply has doubts about what the transaction covers, the issuing bank most of the times will submit a recovery request to obtain documentation (for example, a receipt) of the transaction.

However, most of the times they will initiate a chargeback (transaction refund) immediately.

When you receive a dispute, the transaction amount will be added to your account reserve and you can take the following actions:

1. Respond to the dispute, prove that the transaction was valid and that the cardholder is not eligible for a refund.
2. Accept the dispute and accept the cardholder's claim.

Regardless of the type of dispute you receive, you should always contact your client to understand the situation and try to solve it. You can even ask the customer to tell the bank to cancel the dispute in the event of a misunderstanding.

Still, you must formally respond to the dispute as follows:

1. In the event of wishing to dispute the ongoing claim, you must provide all transaction-related information as set out in "Applicable Evidence".
2. If you accept the dispute, you must send us a text giving your consent in response to the ticket. E.g., "I agree this refund will be made".

In the event that you win the dispute, the transaction amount will be released from your account reserve and added to your available balance.

If you do not respond to the dispute within the prescribed period, you will lose the right to claim, the transaction discount will be automatically applied, and the corresponding fine will apply.

Chargebacks

A chargeback reverses a transaction and refunds the transaction to the cardholder. Reasons for chargebacks:

• Fraud.
• The cardholder states that he/she does not recognize the transaction.
• The card used was lost or stolen.
• Product or service problem.
• Cardholder claims service or merchandise has not been delivered.
• The good or service was not as described (e.g., broken).
• An incorrect amount is charged.
• Subscription was cancelled.
• The amount was charged twice.

Reject a chargeback:

In most cases, you can challenge a chargeback by presenting proof that the cardholder is, in fact, your customer and that you have delivered the goods or services according to quality and delivery time.

Sometimes the case is clear and you can see that the transaction was fraudulent. In this case, there is nothing to do but accept the back payment.

When rejecting a back payment, the answer should include:

1. The reason why you understand the chargeback should not proceed.
2. Evidence (convincing evidence) that you have delivered the goods or services.

Once you have submitted your appeal, the issuing bank has a deadline to accept or reject your appeal.

Win a back payment

You win the back payment if the issuing bank does not reject your representation within the time limit. Upon winning the chargeback, the transaction amount is released from your account reserve.

Losing a back payment

In the event that the issuing bank does not accept your receipt, the transaction amount will be returned to the cardholder and deducted from your Paysepro. account.

Applicable evidence:

Physical products

1. Receipt, order confirmation or invoice including:
   • Product description.
   • The total amount paid.
   • The last four digits of the card number.
   • Shipping Address.
2. Copies of emails, letters, phone conversation logs.
3. A brief description of the communication between you and the customer after the customer has filed the dispute.
4. Date of shipment.
5. Shipping carrier.
6. The tracking number.
7. Confirmation of shipment that the product was delivered to the shipping address.

Digital products or services

1. Receipt, order confirmation or invoice including:
   • Description of the product or service.
   • The total amount paid.
   • The last four digits of the card number.
   • Delivery address or delivery medium (e.g. PDF by email).
2. Copies of emails, letters, phone conversation logs.
3. A brief description of the communication between you and the customer after the customer has filed the dispute (if applicable).
4. Activity log showing IP address, logins, including timestamps and activity.
5. Proof of delivery (e.g. proof that you sent the product by email).

Offline services

1. Receipt, order confirmation or invoice including:
   • Service description.
   • The total amount paid.
   • The last four digits of the card number.
   • Copies of emails, letters, phone conversation logs.
   • A brief description of the communication between you and the customer after the customer has filed the dispute (if applicable).
2. Description of how the service was provided.
3. Date of service.
4. Documentation of the provision of services (e.g. a signed contract).