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.

Chargeback Codes

Visa

Dispute Condition Description	Dispute Condition Code	Category Code	Category Code Description
EMV Liability Shift	10.1	10	Fraud
EMV Liability Shift Non-counterfeit Fraud	10.2	10	Fraud
Other Fraud: Card-Present Environment	10.3	10	Fraud
Other Fraud: Card-Absent Environment	10.4	10	Fraud
Visa Fraud Monitoring Program	10.5	10	Fraud
Card Recovery Bulletin	11.1	11	Authorisation
Declined Authorisation	11.2	11	Authorisation
No Authorisation	11.3	11	Authorisation
Late Presentment	12.1	12	Processing Error
Incorrect Transaction Code	12.2	12	Processing Error
Incorrect Currency	12.3	12	Processing Error
Incorrect Account Number	12.4	12	Processing Error
Incorrect Amount	12.5	12	Processing Error
Duplicate Processing/Paid by Other Means	12.6	12	Processing Error
Invalid Data	12.7	12	Processing Error
Merchandise/Services Not Received	13.1	13	Consumer Disputes
Cancelled Recurring Transaction	13.2	13	Consumer Disputes
Not as Described or Defective Merchandise/Services	13.3	13	Consumer Disputes
Counterfeit Merchandise	13.4	13	Consumer Disputes
Misrepresentation	13.5	13	Consumer Disputes
Credit Not Processed	13.6	13	Consumer Disputes
Cancelled Merchandise/Services	13.7	13	Consumer Disputes
Original Credit Transaction Not Accepted	13.8	13	Consumer Disputes
Non-Receipt of Cash or Load Transaction Value	13.9	13	Consumer Disputes

Mastercard

Mastercard Reason Code Description	Code
Requested/Required Information Illegible or Missing	2
Warning Bulletin File	7
Requested/Required Authorisation Not Obtained	8
Account Number Not On File	12
Transaction Amount Differs	31
Duplicate Processing	34
Card Not Valid or Expired	35
No Cardholder Authorisation	37
Fraudulent Processing of Transactions	40
Cancelled Recurring Transaction	41
Late Presentment	42
Correct Transaction Currency Code Not Provided	46
Exceeds Floor Limit, Not Authorised, and Fraudulent Transaction	47
Questionable Merchant Activity	49
Credit Posted as a Purchase	50
Cardholder Dispute, Defective / Not as Described	53
Non-receipt of Merchandise	55
Card-Activated Telephone Transaction	57
Services Not Rendered -Unwilling or Unable to render services -Payment by other means -Airline flight not provided	59
Credit Not Processed	60
Counterfeit Transaction Magnetic Stripe POS Fraud	62
Cardholder Does Not Recognise-Potential Fraud	63

Articles in this section

Chargebacks Overview