There may be times when something goes wrong with a sale. When this happens, your customer may dispute a payment or request chargeback by asking their card issuer to reverse the charge. If this happens, the VeeaPay team is here to help you navigate the process.
What is a chargeback?
When a card transaction is disputed (either at the request of the cardholder or by the cardholder’s bank), you may receive a chargeback. If a chargeback occurs, you will be charged for the amount of the transaction.
We will actively support you to dispute the chargeback and to recover the charged amount from your customer’s bank.
What are reasons for a chargeback?
Some of the reason for chargebacks may include:
What happens during a chargeback?
A chargeback happens when a customer contacts their card issuer to dispute a transaction. The chargeback is passed through the applicable payment network to the merchant. Your VeeaPay Account will be charged at the time the chargeback is received. An additional fee of $25 will be applied to cover the expenses incurred through the chargeback.
What should I do if I receive a chargeback?
If we receive notice of a chargeback, we will notify you. Our notice will include a request that you provide us with all relevant information and documents regarding the transaction so that we may forward the information to the card issuer. Please read our notice carefully and determine if you are able to provide the requested information. Our notice will include a “respond by” date. As the card networks only allow a limited amount of time to respond to a chargeback (and dispute a chargeback), it is critical that you respond to our requests before the due date.
How do I manage chargebacks?
If a customer contacts you with a complaint about a purchase, you should first work with the customer to resolve the dispute. If you cannot resolve the dispute to your mutual satisfaction, instruct the customer how to return the merchandise. Once the merchandise has been returned to you, issue a refund to the same credit card used to make the purchase
To avoid chargebacks with the reason “Transaction not recognized” make sure that the business name registered with us is easily recognizable and that your receipt clearly shows the name of the business.
In case the product was shipped: to ensure safe receipt of merchandise, use a form of shipping that provides proof of delivery. For higher ticket items, require a signature for delivery.
You can find tips on how to prevent chargebacks here.
What is a retrieval request?
A retrieval request occurs when your customer or your customer’s bank requests more information about a transaction that appears on his or her card statement.
Are any funds deducted from my bank account as a result of a retrieval request?
No, a retrieval request is just a request for information. You will not be charged for the amount of the transaction belonging to the retrieval request. Failure to provide us with the requested details and documents on the transaction may result in a chargeback.
What should I do if I receive a retrieval request?
We will notify you any retrieval request and you will be asked to provide us with all relevant information and documents regarding the transaction so we may forward the information to card issuer.
What is a fraud report?
A fraud report occurs when your customer’s bank notifies us that the card used for the payment has been reported by the customer as fraudulently used, lost, stolen or counterfeit.
At this point you won’t be charged, but it is highly likely that a chargeback will follow with fraud reasons.
What should I do if I receive a fraud report?
You will be duly notified of the fraud report and you will be provided with further instructions.
If you have the option, the best practice is to contact your client to solve the issue and ask them to call their bank to stop any potential chargebacks.