What is the funding flow when a chargeback occurs?
Any time there is a dispute, WorldPay will draw the funds from your Operating Account. To ensure the Operating Account remains whole, upon receipt of a Chargeback (CB) Report from WorldPay, Finix will immediately draw the amount of the chargeback net of any fees from the Submerchant (SM) to the For Benefit Of (FBO) account, then immediately move those funds from the FBO to your Operating Account (these are the 'offsetting transfers' we create in relation to a chargeback).
For the duration that the CB / Dispute is in-process or otherwise unresolved, we will maintain the amount of the chargeback in your operating account. Once the chargeback has been resolved, Finix will automatically distribute the funds accordingly: if the CB is upheld (cardholder 'wins' the case) the funds are retained by WP and you have already collected the amount due from the Cardholder (no further transfers necessary); if the SM 'wins' the CB, then Finix will automatically reverse the 'offsetting transfers' for the CB (will return the amount of the CB net of any fees to the SM).