A chargeback (also known as unpaid) occurs when a customer (cardholder) contests a transaction with the bank. The issuing Bank of the card then addresses a dispute to the acquiring bank so that it proceed to the payment immediately.
For any credit card payment, your customer has the possibility to contest a payment for up to 13 months. In France, an opposition is allowed only in case of a fraudulent card utilization. However, in other European countries, the bank card can be used as part of a commercial dispute.
Chargeback status:
RETRIEVAL_NOTICED
Object:
A request for information is sent to you by your client in order to obtain information on the nature of the carried out operation. At this stage, it is not considered as an unpaid transaction, however it should evolve according to the answers made.
Action:
To respond by providing the nature of the service issued, proof of customer's consent and/or proof of delivery.
RETRIEVAL_CLOSE
Object:
Notifies that the information request is closed. The provided information will prevent the unpaid.
Action:
No action to carry out
CHARGEBACK_NOTICED
Object:
An unpaid is addressed to you by your client. The transaction amount will be debited from your account in order to allow the refund. A non-refundable processing fee applies for the processing of the dispute.
Action:
You have a 3-week deadline to respond by providing proof of consent of the transaction and/or proof of delivery.
CHARGEBACK_WON
Object:
The unpaid was rejected. The funds will be reimbursed to you.
Action:
No action to carry out
CHARGEBACK_LOST
Object:
The unpaid is retained. The funds will not be reimbursed you.
Action:
No action to carry out
TRANSACTION_REFUNDED
Object:
The funds lost during the chargeback will be reimbursed to you.
Action:
No action to carry out
There is a dispute solution process that consists in contesting, in some cases, the unpaid and to prove that the payment is valid.
- If the dispute revolves in your favour, the amount contested and the expenses are returned to you.
- If a dispute remains confirmed, the card holder will be reimbursed.
A dispute receipt
When a dispute occurs, a notification mentionning the disputed payment is sent to CentralPay. CentralPay will send you as well a notification. An dispute object is created with a status that requires a response. If during your integration you have set up hooks you will also be informed by an event.
You are able to view the status of each of the disputes through the platform, to read the reasons the client has deferred to the card provider, and to deal with the dispute by contesting it either by submitting a relevant "proof" or by accepting it.