What is the Funding Flow When a Chargeback Occurs?

1. Funds are withdrawn from your Operating Account by your Payment Processor

2. Finix withdraws the amount of the chargeback net of any fees from the Sub-merchant to the For Benefit Of (FBO) account*

3. Transfer the aforementioned funds from the FBO account to your Operating Account (these are the 'offsetting transfers' we create in relation to a chargeback).

4. Once the Chargeback has come to a resolution, Finix will take the following actions where applicable: 

a. Cardholder 'wins' the dispute (upheld): the funds are retained by WP and you have already collected the amount due from the Cardholder (no further transfers necessary); 

b. Sub-Merchant 'wins' the dispute: Finix will automatically reverse the 'offsetting transfers' for the Chargeback (will return the amount of the Chargeback net of any fees to the Submerchant).

*Happens upon receipt of a Chargeback Report from Payment Processor Finix to ensure books are balanced. 

Note: So long as the chargeback is unresolved, the total amount of the Chargeback will remain in your operating account.