7.1 CHARGEBACK LIABILITY
Many Scheme Owners, and in particular including most Scheme Owners issuing Credit Cards allow Account Holders to Chargeback Authorised and Settled Transactions by requesting a Chargeback from the Scheme Owner or the Issuing Bank. Merchant's receipt of a Settlement and/or Authorisation confirmation regarding a particular Transaction therefore does not unconditionally entitle Merchant to receive Settlement of the Transaction amount or to keep the Settled amount, as in case the Account Holder claims a Chargeback in accordance with the relevant Scheme Rules, Merchant loses entitlement for the relevant amount and must return it via Adyen to the Account Holder. Please check the relevant Scheme Rules to see which Payment Methods allow Chargebacks and what procedures apply. Adyen credits an Eligible Merchant's Bank Account with Settlement amounts on the condition that no Chargeback shall occur. If there is a Chargeback, Adyen is authorized to debit the credit that was made to the Bank Account.
Scheme Owners and Adyen do not accept Merchant generating excessive levels of Chargebacks as Chargebacks are an indication of Merchant's inability to provide the Merchant Products and Services in accordance with Account Holder expectations and create additional work and costs for all parties involved (including Scheme Owner, the Issuing Bank and Adyen). If Chargeback levels of the Transactions of the Merchant for a specific Payment Method are above levels acceptable for Adyen and/or the relevant Scheme Owner for that Payment Method or are expected to become above unacceptable levels, Adyen reserves the right to suspend the availability of said Payment Method in its discretion.
In general Merchant should take into account that a Chargeback level of more than 0.5% of the total volume of Transactions which is Authorised, is considered unacceptable for Adyen and most Scheme Owners and can lead to suspension of Transaction processing for the relevant Payment Method and/or Fines being applied (for which Merchant will be responsible). For some Payment Methods higher or lower tolerances for Chargeback levels may apply, please check the relevant then current version of the relevant Scheme Rules for this (see Customer Area for more information). Please note that the relevant Scheme Owner, Acquirer and/or Adyen not taking immediate action in case of excessive Chargeback levels occurring cannot be interpreted as consent or a waiver of related rights by Adyen, the relevant Acquirer or Scheme Owner.
Merchant may not provide Refunds to an Account Holder for a previously processed Transaction using a different Payment Method than the method used for the original Transaction. The original Transaction can in such case still be subject to Chargeback by the Account Holder or Issuer, causing the Merchant having to refund the received funds twice. This is a well-known method to make fraudulent use of stolen Credit Cards at the expense of Merchants.
In case Adyen has reasons to suspect that Merchant is not delivering its Merchant Services or Merchant Product on or prior to the Delivery Dates used to calculate the Uncompleted Order Amount and/or if Adyen has reason to suspect that the Merchant Products or Merchant Services for which Adyen processes Transactions are based on fraud, likely to cause high Chargeback volumes and/or illegal, Adyen has the right to suspend Settlement of all related Transactions and/or block Authorisations therefor until Adyen has been given assurances to its satisfaction that the relevant Merchant Products and Services are actually delivered in accordance with applicable laws and orders placed by the Account Holder.
7.2 CHARGEBACK FEE
For every Chargeback, a non-refundable Chargeback Fee will be charged to the Merchant as set out in the Merchant Agreement.
7.3 CHARGEBACK PAYMENT
For every Chargeback where Adyen is obliged to pay the Chargeback amount, Merchant gives Adyen authority to deduct the same amount from the Merchant Settlements or where the Settlement amount is too low, from the Deposit.
7.4 CHARGEBACK PERIOD
As Chargebacks may arise a considerable period after the date of the relevant Transaction, the Merchant acknowledges and agrees that, notwithstanding the termination of the Merchant Agreement for any reason, Adyen shall remain entitled to recover Chargebacks and Chargeback Fees and related Fines from the Merchant in respect of all Chargebacks that occur in relation to Transactions effected during the term of the Merchant Agreement.
7.5 REFUND CHARGES
Refunds will be charged as a Transaction by Adyen and a Refund fee can be applied by Adyen after giving prior notice to Merchant, if manual intervention is needed or additional costs are incurred by Adyen to process such Refund.
Adyen will not execute a Refund (meaning the relevant sum will not be returned by Adyen to the relevant Account Holder, directly or via the relevant Acquirer / Scheme Owner) in case the funds for this cannot be subtracted from the next Settlement. Refunds are not funded by Adyen from the Deposit (as the Deposit is not calculated taking Refunds into account) or funded from its own means. On Merchant's request an additional deposit specifically for funding Refunds may be created with Adyen to ensure the immediate execution of Refunds, irrespective of then current Settlement amounts.
7.6 NO REFUND OF FEES
Fees charged for executing the original Transaction will not be refunded in part or in whole to the Merchant if the Transaction is Refunded or made subject to a Chargeback.