As a Payment Facilitator, you will need to deal with chargebacks or inquiries from your merchants.
How do Inquiries and Chargebacks Happen?
When a customer of your merchants has an issue with a charge on their credit card, they can contact their bank to dispute the charge.
The bank then makes a formal chargeback or inquiry for more information. As long as the transaction was processed in some way by your system, the chargeback will be associated with you as the PayFac and directly associated with your sub-merchant.
Inquiry (Soft Chargeback)
If the cardholder's bank makes an inquiry, then the processor doesn't take the disputed amount or a fee right away from your Operating Account.
If the cardholder's bank makes a formal chargeback, then the bank takes the disputed amount from your payfac operating account.
Our system automatically debits the merchant or withholds the chargeback amount from the settlement. We then deposit that money into your operating account.
If a merchant wins their chargeback, they are given back the amount they were debited.
See more here.