A chargeback occurs when a customer disputes a card transaction, questioning its validity. When this happens, the customer’s bank will request additional information about the transaction and review the details to determine the outcome.
If the bank rules in favor of the customer, the disputed amount and a dispute fee will be charged to the merchant.
If the bank rules in favor of the merchant, both the disputed amount and the fee will be returned to the merchant’s Zavo balance.
Why Do Chargebacks Happen?
Chargebacks can occur for a variety of reasons, but the most common ones include:
Unrecognized or unexpected payments.
Dissatisfaction with the product or service provided.
What Happens If You Receive a Chargeback?
If a customer disputes a payment, the following process takes place:
The Customer Initiates a Dispute:
The customer contacts their bank to dispute a specific transaction, providing a reason for the chargeback and specifying the amount (partial or full).
The Bank Contacts Zavo’s Payment Processor:
The customer’s bank reaches out to Zavo’s payment partner, who then informs Zavo of the dispute.
Zavo Notifies the Merchant:
Zavo will send you an email with details about the disputed payment, including the amount, date, and reason provided by the customer.
At this point, the disputed amount and an admin fee are temporarily deducted from your Zavo balance while the chargeback is reviewed.
Responding to the Chargeback:
You will need to decide whether to contest or accept the chargeback.
To contest it, you must submit evidence to support your case, such as proof of delivery, receipts, or correspondence with the customer.
Possible Outcomes
Missed Deadline or Acceptance of the Chargeback:
If you don’t respond by the deadline or choose to accept the chargeback, the customer will automatically win, and the funds will not be returned to your account.
Contest the Chargeback:
If you provide sufficient evidence, Zavo will compile and submit it to the customer’s bank for review.
Review Timeline: The bank’s review process can take up to 90 days.
If the bank rules in favor of the customer:
The disputed funds and fee remain with the customer.If the bank rules in favor of the merchant:
The disputed funds and fee are returned to your Zavo balance.
Key Points to Note:
Zavo cannot guarantee the outcome of a chargeback. However, submitting strong, compelling evidence significantly improves the chances of a favorable result.
The bank’s decision is final. Once the dispute is resolved, it cannot be overturned by either party. If the decision is in your favor, the customer cannot reopen the dispute, and vice versa.
For further assistance or if you have any questions about disputes or chargebacks, feel free to contact our Support Team at [email protected]. We’re here to help!