When a customer disagrees with or does not recognise a transaction that is charged to his/her credit card, the cardholder can ask the card issuing bank to raise a dispute. If a dispute is raised, the card scheme, Visa/Mastercard, will notify MultiSafepay and reclaim the transaction amount from the merchant.
What is a retrieval?
If a customer does not recognise a transaction that is charged, the cardholder can ask for more information by filing a retrieval request. This process is a pre-chargeback process and can be used to prevent a chargeback process. There are no administrative fees at this point. It is still allowed to perform a refund in this stage.
I received a chargeback notification, what do I do?
Providing evidence that the chargeback is wrongful, is always the responsibility of the webshop.
MultiSafepay can challenge the chargeback on your behalf, but to do so, we need documented proof of the order. This includes:
- An invoice of the order
- Track & trace
- Signed proof of delivery
- Print- screens of (email) contacts you may have had with the cardholder
Your MultiSafepay chargeback team will decide on whether the chargeback can be challenged, based on the quality of the delivered proof.
The chargeback will be shown in a separate transaction connected to the original transaction in your MultiSafepay Control. However, The required documentation to challenge the chargeback needs to be uploaded in the original transaction.
Please note: the card scheme will make the final decision.
Chargeback rules, why aren’t refunds allowed anymore?
As soon as the cardholder sends in the chargeback, he/she will typically be refunded by the issuing bank. Visa and Mastercard directly reclaim the amount from MultiSafepay and on our turn we debit your MultiSafepay Control balance.
When you refund a chargeback transaction, the chances are high that the customer will receive the amount twice. Therefore, we do not support a refund of a transaction tied to a chargeback.
What are the reasons for a chargeback?
The most common chargeback reasons are fraud, non-delivery of goods or goods not as described.
What can I do to minimize chargebacks?
There are several actions that can be taken to prevent chargebacks as much as possible. This starts with good customer service.
Fraud related chargebacks can be avoided altogether by using 3D Secure, whereby the cardholder needs to identify him or herself. Fraud-based chargebacks are no longer possible when using the 3D secure.
It is still possible to receive a chargeback due to non-delivery and goods not as described. These two reasons are well within your own control.
Non-delivery chargebacks can be minimized by:
- Informing your customer of delivery times, both expected and actual.
- Having a well-documented delivery process e.g. by using track & trace with signature.
- Refund or cancel the transaction if the goods will not be delivered within the terms of the delivery time or will not be delivered at all.
Goods not as described chargebacks can be minimized by:
- having a clear description on your website and delivering quality goods.
What happens if I provided proof, but the cardholder still does not agree?
If the customer does not agree with the chargeback, the process of the chargeback continues. It is possible to challenge the procedure, however the potential cost of doing so is significant.
You will need to present strong evidence of the transaction, evidence which has not been presented before.
Please contact us at [email protected] if you want to proceed and we will assist to the best of our abilities.
Why can a cardholder initiate a chargeback?
A cardholder can claim a chargeback for a minimum of 180 days after the purchase based on their customer rights given by the card scheme (Visa, Mastercard and American Express).
There are possibilities when a customer has a longer time frame to initiate a chargeback depending on the business model of your webshop.
e.g. When a yearly subscription has been paid in advance.
By offering credit cards as a payment option in your webshop you agree to the customer rights that come with credit card acceptance.
Why do you charge a chargeback handling fee?
Visa and Mastercard, as well as the processing bank, will charge fees for a chargeback.
MultiSafepay does not charge you anything extra, the work done by the MultiSafepay chargeback team is done free of charge as part of our service to you. Of course, we are always looking to bring the chargeback cost down in any way we can.