What is a chargeback?
A chargeback or dispute on international cards is a process that allows a cardholder to challenge and potentially reverse a transaction that they believe was made in error, due to fraud, or as a result of unauthorised use of their card. The most common reasons for a chargeback are:
Unauthorized use of a debit or credit card: Criminals use a stolen card to make unauthorised purchases.
Consumer disputes: Cardholders may dispute a transaction if they:
did not receive the expected goods or services
claim they cancelled an order or subscription
believe that the goods or services provided do not match the description given at the time of purchase
Additionally, a chargeback may be initiated by the cardholder’s bank in cases where the customer’s account does not have sufficient funds to cover the amount, and the bank is unable to settle it in any other way.
How Nets helps you as a merchant handle a chargeback
The rules for using VISA or MasterCard are universal for merchants and payment service providers such as Nets. The difference lies in how payment service providers work with merchants to handle chargeback cases.
At Nets, we take a proactive approach, aiming to minimize back-and-forth communication by being clear and informative from the outset.
Standard process for handling a chargeback
Nets receive information about the chargeback ca se from the card issuer/bank.
Nets inform you as the merchant via email and provides detailed information about the case, including order ID, date, amount, type of chargeback, and the required documentation you must submit if you disagree with the chargeback.
You collect and submit the documentation to us within the deadline stated in the emails.
Nets contacts you if there are any questions.
Nets engages in a dialogue with the card issuer/bank on your behalf to find a fair resolution in accordance with the card scheme rules.
Depending on the type of chargeback, you may be debited at the initiation of the dispute and credited depending on the outcome of the case.
Do you have questions about an ongoing dispute?
If you have questions regarding the status of an ongoing dispute, we ask that you reply to the email you have received from us concerning the specific case. This ensures that all relevant information is properly collected in the case.
What you as a merchant can do to prevent chargebacks
Although it is difficult to eliminate chargebacks entirely, there are several security measures you can implement to reduce the risk:
Deliver what you promise customers to reduce disputes about product or service quality.
Use reliable delivery providers to prevent delivery-related issues.
Implement robust payment security measures to prevent fraudulent transactions.
Be alert to suspicious activity, such as discrepancies between billing and shipping addresses.
Ensure that purchases are verified using chip and PIN or 3D Secure.
Read more: Avoid card fraud in your webshop
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