Chargeback Process Flow Chart

Chargebacks are a common occurrence in the world of e-commerce, and having a clear understanding of the chargeback process flow chart can help merchants navigate this complex landscape with ease. In this article, we will break down the chargeback process flow chart into easy-to-understand steps, so you can better manage chargebacks and protect your business.

The chargeback process typically begins when a cardholder disputes a transaction with their bank. The cardholder may claim that they did not authorize the transaction, that the goods or services were not as described, or that they never received the goods or services at all. The bank will then initiate a chargeback on behalf of the cardholder, and the merchant will receive a notification of the chargeback.

Chargeback Process Flow Chart

Step 2: Merchant Response

Upon receiving a chargeback notification, the merchant has the opportunity to respond by providing evidence to dispute the chargeback. This may include providing proof of delivery, customer communication, or any other relevant documentation that supports the validity of the transaction. The merchant must gather and submit this evidence within a specified timeframe to have a chance of winning the chargeback case.

Step 3: Issuer Investigation

After receiving the merchant’s response, the issuing bank will conduct an investigation to determine the validity of the chargeback. The bank will review the evidence provided by both the cardholder and the merchant before making a final decision. If the bank finds in favor of the merchant, the chargeback will be reversed, and the funds will be returned to the merchant’s account. However, if the bank upholds the chargeback, the merchant will lose the disputed amount, as well as incur additional chargeback fees.

By understanding the chargeback process flow chart and taking proactive steps to prevent chargebacks, merchants can protect their businesses and improve their bottom line. Remember to keep detailed records of all transactions, provide excellent customer service, and respond promptly to any chargeback notifications to increase your chances of successfully disputing chargebacks.