What is a Chargeback

When a customer decides to dispute a charge made to their debit or credit card, it is referred to as a chargeback. The chargeback initially results in the transaction being reversed and the funds that you received for the payment being returned to the customer.

A dispute is filed, the acquirer will debit the transaction amount from the merchant’s account. The merchant will then need to gather compelling evidence. This will help strengthen their response and prove their innocence from fraudulent activity. The funds will return to the merchant. That is, if the evidence favors an overturn of the cardholder’s dispute.

Chargebacks were introduced as a form of consumer protection against fraud.

Chargebacks as Payment Facilitator

As a Payment Facilitator, the acquirer will debit the charges from your Operating Account. It is up to you to collect the money from the Merchant. 

Chargebacks within Finix Payments 

Finix Payments takes care of the process of collecting funds from your Merchants when they experience a Chargeback. The acquirer will automatically deduct the chargeback amount from your Operating Account. 

When a chargeback is issued to a merchant, they are automatically debited and that money is placed in the Operating Account. 

If the merchant wins their case with the Issuing Bank, Finix Payments will credit the merchant back and debit your Operating Account. 

If the merchant loses their case, the amount of the chargeback still resides in your Operating Account.

Handling Chargebacks in Finix’s Dashboard

1. Navigate to Disputes Page on Finix’s Dashboard

In this page, you can see all the Disputes. You can filter by Dispute ID and Created On date range.  

2. Click on a Dispute

Here you can see all the details for a Dispute including the transfers that occurred between your FBO Account, Operating Account, and the Merchant Identity.

3. Upload Evidence File if you choose to represent Merchant

If you choose to represent the merchant, either you or the merchant have the ability to upload evidence files for the dispute. Often, WorldPay asks for additional documentation regarding the order or a shipping receipt. Please review the details of the Dispute.

If your processor is Litle (Vantiv eComm), the evidence files will be submitted automatically to WorldPay.

4. Contact WorldPay

You should contact your WorldPay representative to update them on whether you choose to represent the Merchant or the Buyer.