What is a Chargeback?

It can sometimes be difficult to stay away from chargebacks. What must you do when it happens to you? It is good to take a look at what to expect when a Chargeback request against you is requested by a cardholder. It is unfortunate that many merchants are actually not aware of the tedious process that they need to go through. Here is the entire process laid out in a step-by-step manner:

Step 1: The cardholder files a complaint by contacting his or her issuing bank about the erroneous transaction.

Step 2: The issuing bank checks whether the dispute is valid. If the bank finds the request invalid, the dispute is simply declined and the customer is charged with a processing fee.

Step 3: If the issuing bank sees a potential error, a provisional credit is provided to the cardholder. The bank then initiates the usual chargeback process, to obtain credit from the merchant’s sponsoring bank.

Step 4: The merchant bank sponsoring the account then checks whether the chargeback is valid or not. They usually send you a notification to inform you of a pending chargeback request.

Step 5: The merchant’s sponsoring bank then does some research on the validity of the chargeback claim. If the chargeback is found to be invalid, they will decline said chargeback and inform the card-issuing bank.

Step 6: Assuming the chargeback is invalid, the amount of the chargeback is removed from the merchant’s account and the merchant’s bank will notify the merchant about the outcome.

Step 7: If a processing error has indeed occurred, the corresponding correction is then sent to the card-issuing bank for re-presentation.

Step 8: The merchant will be asked to provide the needed documentation and proof to remedy the chargeback. If the documentation provided is satisfactory, the claim for chargeback is denied and the customer will be charged once again for the sale. If the documents seem to be unsatisfactory, the chargeback amount will be provided to the customer.

As is probably obvious, the chargeback process is a very complicated one and involves a number of different parties to remedy the chargeback. As a merchant,it will take some time to manage and remedy a chargeback. A typical chargeback process lasts anywhere from 6 weeks to up to 6 months. If each step takes the maximum amount for completion, then it should not be surprising for a chargeback to pressure you for what will seem like forever.

To learn how to process a Chargeback in QuikStor Express please view our step by step guide here How to Process a Credit Card Charge Back.

If you should have any problems or questions, please call QuikStor’s Technical Support at 1-800-321-1987. 

Danny Ruiz

Technical Support Manager