What is a Chargeback?

chargebacks are requested directly from your customer to their bank chargebacks usually happen when a customer claims that the order was fraudulent or illegitimate, basically that they did not make the charge or that the charge is not correct a chargeback is a consumer right that we all have and not something that can be stopped, only contested by the merchant (you) after the chargeback is recorded regpack has put in place many processes to help avoid chargebacks, from https //help regpack com/hc/en us/articles/5834348311707 payment receipts invoices to applicants https //help regpack com/hc/en us/articles/5834348311707 payment receipts invoices to applicants right away when the system sees a payment processed, to being able to control the soft descriptor (the name displayed on the receipt) https //help regpack com/hc/en us/articles/5834349649051 can i customize the text my users see on their bank credit card statement in the case of a chargeback, your customer contacted their bank directly to claim the charge was fraudulent the bank reverses the order while the charge is investigated it is not in the best interest of the applicant to do this, as many chargebacks on their end can cause their card to be shut down for high risk if you would like to contest a chargeback made on your merchant account, please let our payments team know so they can connect you with a chargeback analyst with your payment processor to reach the payments team, email mailto\ payments\@regpacks com once the necessary proof is provided, you can contest the chargeback with your customer's bank alternatively, you can contact your applicant and request they inform the bank that the order is valid in order for a reversal to happen https //help regpack com/hc/en us/articles/6987192378651 https //help regpack com/hc/en us/articles/6987521286811 chargeback faq how long after the payment does the shopper have to issue a chargeback? depending on the bank's policy, a card holder has a right to dispute the charge up to 1 year after the purchase was made merchants can file a chargeback dispute up to 7 days after the chargeback has been posted on the account for more information on disputes please see https //support wepay com/hc/en us/articles/115001828373 can you cancel the chargeback or reverse it how was this applicant able to issue a chargeback? our policy clearly outlines a no refund policy, and they read the terms of service a chargeback is issued when a shopper contacts their bank and reports a fraudulent charge on their statement, or claims they did not receive services for their payment the bank then takes the money back from the payment processor with no warning or notification, as it is a customer / consumer right to dispute what they believe or perceive to be fraudulent activity unfortunately, chargebacks cannot be avoided, only disputed we recommend contacting the applicant immediately if they issue a chargeback what happens once i dispute a chargeback? once your information has been submitted please allow for up to 90 days for any decision regarding the disputed chargeback to be made if the chargeback is reversed, you will see a credit in your account within that time frame if the chargeback is not reversed there will be no credit issued to your account and no further action will be taken my applicant told me they called their bank and reversed the chargeback will a chargeback reversal show in regpack? how will i know the reversal was successful? please let us ( mailto\ payments\@regpacks com ) know ifn your applicant has reversed a chargeback we will confirm with bluesnap’s chargeback team that the chargeback has been reversed on their end as well once the chargeback has been reversed and credited back to your merchant account, you will see this credit in your subsequent payout the chargeback reversal will not log in regpack, so once the chargeback is confirmed as reversed, a https //help regpack com/hc/en us/articles/5834365295771 add a manual payment will need to be logged to bring the applicant's balance up to date https //help regpack com/hc/en us/articles/5834365295771 add a manual payment do the processing fees also get returned? unfortunately, the processing fees are not refunded is there a fee to process a chargeback/refund? yes, your business is charged a chargeback fee each time a chargeback is issued you can receive confirmation of the fee by sending a written request to < mailto\ payments\@regpacks com > although a chargeback can be successfully disputed, the chargeback fee cannot be refunded i received a notice there are too many chargebacks on my account what can i do now? if the chargeback level on your merchant account has surpassed the acceptable thresholds established by mastercard and visa the regpack payments team will reach out to you as a reference, the industry acceptable threshold for excessive chargeback ratio (# of chargebacks divided by # of sales) is 1% or higher the payment processor will send you the the chargeback ratio for your account in the past month number of sales number of chargebacks chargeback ratio regpack's goal is to help you correct this and get back on track it is critical that you create an action plan with the payment processor to prevent chargebacks assess your business and understand the root cause for the elevated chargeback levels ensure your terms and conditions are clear set a custom soft descriptor clarify your refund policy for registrants clear description of the product/service you know your business best, however; if we can help in analyzing please let us know