{"title":"Afterpay and Clearpay chargebacks","category":"default","creationDate":1779533780,"content":"<p><span style=\"color: #0ABF53;\"><span style=\"font-size: 22px;\"><strong>New dispute flow<\/strong><\/span><\/span><br \/>\nStarting August 25, 2025 the dispute flow starts with a <strong>Notification of Chargeback<\/strong> instead of a <strong>Request for Information<\/strong>.<\/p>\n<ul>\n<li>New disputes opened on or after the starting date will follow the new flow described on this page.<\/li>\n<li>Open disputes that on the starting date are still in the 13-day defense period will continue in the old flow until finalized.<\/li>\n<\/ul>\n<p><\/p>\n<hr \/>\n<p><br><\/p>\n<p>This chargeback information applies to <strong>Afterpay<\/strong> in Australia, Canada, and New Zealand, <strong>Cash App Afterpay<\/strong> in the United States, and <strong>Clearpay<\/strong> in the United Kingdom. We will refer to this collectively as <em>Afterpay\/Clearpay<\/em>.<\/p>\n<p>Shoppers can initiate chargebacks directly with Afterpay\/Clearpay up to 120 days after the payment, cancellation, or expected receipt of goods or services. When Afterpay\/Clearpay opens a dispute, you have <strong>13 days<\/strong> to defend or accept the dispute. If you do not respond within 13 days, or if you accept the dispute, the dispute is lost and your account is debited for the chargeback amount. If you defend the dispute, Afterpay\/Clearpay has 30 days to make their decision.<\/p>\n<p>The Afterpay\/Clearpay chargeback flow is as follows:<\/p>\n<ol>\n<li><a href=\"#notification-of-chargeback\">Notification of Chargeback<\/a><\/li>\n<li><a href=\"#information-supplied\">Information Supplied<\/a><\/li>\n<li><a href=\"#chargeback\">Chargeback<\/a><\/li>\n<\/ol>\n<p><img alt=\"\" src=\"\/user\/pages\/docs\/10.risk-management\/21.chargeback-guidelines\/afterpay-chargebacks\/afterpay-noc-flow.png\" \/><\/p>\n<h2>Liability for fraud disputes<\/h2>\n<p>Before approving a payment, Afterpay\/Clearpay performs risk checks on the shopper. If successful, Afterpay\/Clearpay takes on the full fraud risk for the payment. This means that if a fraud dispute occurs, the liability lies with Afterpay\/Clearpay and you will not be charged.<\/p>\n<p>However, it is not always clear if a dispute is a fraud dispute, because there is no standard dispute reason code for this situation. Initially a <strong>NotificationOfChargeback<\/strong> journal is booked, followed by <strong>DisputeWonWithoutChargeback<\/strong> if it turns out fraud was involved.<\/p>\n<h2 id=\"notification-of-chargeback\">Notification of Chargeback (NoC)<\/h2>\n<p>The dispute process starts with a Notification of Chargeback (NoC) from Afterpay\/Clearpay. The <strong>NotificationOfChargeback<\/strong> journal is booked, and we send you a  <a href=\"https:\/\/docs.adyen.com\/api-explorer\/Webhooks\/latest\/post\/NOTIFICATION_OF_CHARGEBACK\" class=\"codeLabel  external-link no-image\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">NOTIFICATION_OF_CHARGEBACK<\/a> webhook.<\/p>\n<div class=\"notices yellow\">\n<p>The 13-day period in which you can defend the dispute starts now.<\/p>\n<\/div>\n<p>You can review the dispute, including the <a href=\"#dispute-reasons\">dispute reason<\/a>, in your <a href=\"https:\/\/ca-test.adyen.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"external-link no-image\">Customer Area<\/a> &gt; <strong>Revenue &amp; risk<\/strong> &gt; <strong>Disputes<\/strong>. After your review, you can decide to either:<\/p>\n<ul>\n<li>Accept the chargeback in your <a href=\"https:\/\/ca-test.adyen.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"external-link no-image\">Customer Area<\/a> or using the <a href=\"\/risk-management\/disputes-api\">Disputes API<\/a>. The dispute is lost and you can no longer defend it. The <strong>DisputeDefensePeriodEnded<\/strong> journal is booked, and a <a href=\"#chargeback\">Chargeback<\/a> is opened.<\/li>\n<li>Defend the dispute. You need to upload the relevant defense documents in your <a href=\"https:\/\/ca-test.adyen.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"external-link no-image\">Customer Area<\/a> or using the <a href=\"\/risk-management\/disputes-api\">Disputes API<\/a>.<br \/>\nSee <a href=\"\/risk-management\/understanding-disputes\/dispute-reason-codes#defense_requirements\">Defense requirements<\/a> for file formats and document types. Be sure to address the dispute reason and provide information that supports your position. An overview of the order details is not enough.<\/li>\n<\/ul>\n<p>There is no opportunity later in the process to provide information or to update information you provided.<\/p>\n<h3>Refunded disputed payments<\/h3>\n<p>If you refund the disputed payment, the <strong>DisputeDefensePeriodEnded<\/strong> journal is booked, and the dispute is closed. No chargeback takes place because you already returned the disputed payment.<\/p>\n<h2 id=\"information-supplied\">Information Supplied<\/h2>\n<p>Adyen received your defense documents and forwarded them to Afterpay\/Clearpay. It is no longer possible to change these documents. The <strong>InformationSupplied<\/strong> journal is booked, and we send you an <a href=\"\/risk-management\/disputes-api\/dispute-notifications\/#information_supplied\">INFORMATION_SUPPLIED<\/a> webhook.<\/p>\n<p>Afterpay\/Clearpay now has 30 days to review and either accept or reject your defense.<\/p>\n<ul>\n<li>If you win the dispute, the <strong>DisputeDefensePeriodEnded<\/strong> journal is booked. This is a final status.<\/li>\n<li>If you lose the dispute, a <a href=\"#chargeback\">Chargeback<\/a> is opened.<\/li>\n<\/ul>\n<h2 id=\"chargeback\">Chargeback<\/h2>\n<p>If Afterpay\/Clearpay rejected your defense, or if you did not defend the dispute, the <strong>Chargeback<\/strong> journal is booked, and we send you a  <a href=\"https:\/\/docs.adyen.com\/api-explorer\/Webhooks\/latest\/post\/CHARGEBACK\" class=\"codeLabel  external-link no-image\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">CHARGEBACK<\/a> webhook. Your account is debited for the chargeback amount. This is a final status.<\/p>\n<h2 id=\"dispute-reasons\">Dispute reasons<\/h2>\n<p>The following table shows the possible reason codes for Afterpay\/Clearpay disputes.<\/p>\n<div class=\"sticky-table-container\">\n    \n<table>\n<thead>\n<tr>\n<th style=\"text-align: left;\">Reason Code<\/th>\n<th style=\"text-align: left;\"><div style=\"width:150px\">Description <\/div><\/th>\n<th style=\"text-align: left;\">Defendable<\/th>\n<th style=\"text-align: left;\">Timeframe<\/th>\n<th style=\"text-align: left;\">Defense Requirements<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"text-align: left;\">product_not_received<\/td>\n<td style=\"text-align: left;\">The customer claims that they did not receive the goods or services they purchased at your business.<\/td>\n<td style=\"text-align: left;\"><img title=\"-white_check_mark-\" alt=\"-white_check_mark-\" class=\"smileys\" src=\"\/user\/data\/smileys\/emoji\/white_check_mark.png\" \/><\/td>\n<td style=\"text-align: left;\">13 days from receiving the NoC<\/td>\n<td style=\"text-align: left;\"><a href=\"\/risk-management\/understanding-disputes\/dispute-reason-codes#services-not-provided-merchandise-not-received\">Services not provided\/Merchandise not received<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\">product_unacceptable<\/td>\n<td style=\"text-align: left;\">The customer claims that they received products or services that were defective, damaged, or not as described.<\/td>\n<td style=\"text-align: left;\"><img title=\"-white_check_mark-\" alt=\"-white_check_mark-\" class=\"smileys\" src=\"\/user\/data\/smileys\/emoji\/white_check_mark.png\" \/><\/td>\n<td style=\"text-align: left;\">13 days from receiving the NoC<\/td>\n<td style=\"text-align: left;\"><a href=\"\/risk-management\/understanding-disputes\/dispute-reason-codes#goods-not-as-described-defective\">Goods not as described\/defective<\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\">credit_not_processed<\/td>\n<td style=\"text-align: left;\">The customer claims that they returned the purchased products or canceled the transaction, but have not yet received a refund or credit from you.<\/td>\n<td style=\"text-align: left;\"><img title=\"-white_check_mark-\" alt=\"-white_check_mark-\" class=\"smileys\" src=\"\/user\/data\/smileys\/emoji\/white_check_mark.png\" \/><\/td>\n<td style=\"text-align: left;\">13 days from receiving the NoC<\/td>\n<td style=\"text-align: left;\"><a href=\"\/risk-management\/understanding-disputes\/dispute-reason-codes#credit-not-processed\">Credit not processed<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n\n<h2>Dispute fees<\/h2>\n<p>Before approving a payment, Afterpay\/Clearpay performs risk checks on the shopper. If successful, Afterpay\/Clearpay takes on the full fraud risk for the payment. For this reason, you will not be charged a dispute fee if the dispute results from an unauthorized payment.<\/p>\n<p>For all other Afterpay\/Clearpay disputes you will be charged a dispute fee, regardless of the outcome of the dispute. This fee is booked using the <strong>PaymentCost<\/strong> journal type. This journal type is included in the <a href=\"\/reporting\/settlement-reconciliation\/transaction-level\/settlement-details-report#journal-types\">Settlement details report<\/a> and the merchant payout details sheet in the <a href=\"\/reporting\/closing-your-fiscal-period\/monthly-and-daily-finance-report#merchant-payout-details-sheet\">Monthly and Daily finance reports<\/a>.<\/p>\n<h2>See also<\/h2>\n<div class=\"see-also-links output-inline\" id=\"see-also\">\n<ul><li><a href=\"\/risk-management\/disputes-api\/dispute-notifications\/\"\n                        target=\"_self\"\n                        >\n                    Dispute webhooks\n                <\/a><\/li><li><a href=\"\/risk-management\/manage-disputes\/\"\n                        target=\"_self\"\n                        >\n                    Manage disputes\n                <\/a><\/li><li><a href=\"\/risk-management\/disputes-api\/\"\n                        target=\"_self\"\n                        >\n                    Disputes API\n                <\/a><\/li><\/ul><\/div>\n","url":"https:\/\/docs.adyen.com\/risk-management\/chargeback-guidelines\/afterpay-chargebacks","articleFields":{"description":"Learn about the chargeback process with Afterpay, Cash App Afterpay, and Clearpay, and the guidelines to defend a chargeback.","type":"page"},"algolia":{"url":"https:\/\/docs.adyen.com\/risk-management\/chargeback-guidelines\/afterpay-chargebacks","title":"Afterpay and Clearpay chargebacks","content":"New dispute flow\nStarting August 25, 2025 the dispute flow starts with a Notification of Chargeback instead of a Request for Information.\n\nNew disputes opened on or after the starting date will follow the new flow described on this page.\nOpen disputes that on the starting date are still in the 13-day defense period will continue in the old flow until finalized.\n\n\n\n\nThis chargeback information applies to Afterpay in Australia, Canada, and New Zealand, Cash App Afterpay in the United States, and Clearpay in the United Kingdom. We will refer to this collectively as Afterpay\/Clearpay.\nShoppers can initiate chargebacks directly with Afterpay\/Clearpay up to 120 days after the payment, cancellation, or expected receipt of goods or services. When Afterpay\/Clearpay opens a dispute, you have 13 days to defend or accept the dispute. If you do not respond within 13 days, or if you accept the dispute, the dispute is lost and your account is debited for the chargeback amount. If you defend the dispute, Afterpay\/Clearpay has 30 days to make their decision.\nThe Afterpay\/Clearpay chargeback flow is as follows:\n\nNotification of Chargeback\nInformation Supplied\nChargeback\n\n\nLiability for fraud disputes\nBefore approving a payment, Afterpay\/Clearpay performs risk checks on the shopper. If successful, Afterpay\/Clearpay takes on the full fraud risk for the payment. This means that if a fraud dispute occurs, the liability lies with Afterpay\/Clearpay and you will not be charged.\nHowever, it is not always clear if a dispute is a fraud dispute, because there is no standard dispute reason code for this situation. Initially a NotificationOfChargeback journal is booked, followed by DisputeWonWithoutChargeback if it turns out fraud was involved.\nNotification of Chargeback (NoC)\nThe dispute process starts with a Notification of Chargeback (NoC) from Afterpay\/Clearpay. The NotificationOfChargeback journal is booked, and we send you a  NOTIFICATION_OF_CHARGEBACK webhook.\n\nThe 13-day period in which you can defend the dispute starts now.\n\nYou can review the dispute, including the dispute reason, in your Customer Area &gt; Revenue &amp; risk &gt; Disputes. After your review, you can decide to either:\n\nAccept the chargeback in your Customer Area or using the Disputes API. The dispute is lost and you can no longer defend it. The DisputeDefensePeriodEnded journal is booked, and a Chargeback is opened.\nDefend the dispute. You need to upload the relevant defense documents in your Customer Area or using the Disputes API.\nSee Defense requirements for file formats and document types. Be sure to address the dispute reason and provide information that supports your position. An overview of the order details is not enough.\n\nThere is no opportunity later in the process to provide information or to update information you provided.\nRefunded disputed payments\nIf you refund the disputed payment, the DisputeDefensePeriodEnded journal is booked, and the dispute is closed. No chargeback takes place because you already returned the disputed payment.\nInformation Supplied\nAdyen received your defense documents and forwarded them to Afterpay\/Clearpay. It is no longer possible to change these documents. The InformationSupplied journal is booked, and we send you an INFORMATION_SUPPLIED webhook.\nAfterpay\/Clearpay now has 30 days to review and either accept or reject your defense.\n\nIf you win the dispute, the DisputeDefensePeriodEnded journal is booked. This is a final status.\nIf you lose the dispute, a Chargeback is opened.\n\nChargeback\nIf Afterpay\/Clearpay rejected your defense, or if you did not defend the dispute, the Chargeback journal is booked, and we send you a  CHARGEBACK webhook. Your account is debited for the chargeback amount. This is a final status.\nDispute reasons\nThe following table shows the possible reason codes for Afterpay\/Clearpay disputes.\n\n    \n\n\n\nReason Code\nDescription \nDefendable\nTimeframe\nDefense Requirements\n\n\n\n\nproduct_not_received\nThe customer claims that they did not receive the goods or services they purchased at your business.\n\n13 days from receiving the NoC\nServices not provided\/Merchandise not received\n\n\nproduct_unacceptable\nThe customer claims that they received products or services that were defective, damaged, or not as described.\n\n13 days from receiving the NoC\nGoods not as described\/defective\n\n\ncredit_not_processed\nThe customer claims that they returned the purchased products or canceled the transaction, but have not yet received a refund or credit from you.\n\n13 days from receiving the NoC\nCredit not processed\n\n\n\n\n\n\nDispute fees\nBefore approving a payment, Afterpay\/Clearpay performs risk checks on the shopper. If successful, Afterpay\/Clearpay takes on the full fraud risk for the payment. For this reason, you will not be charged a dispute fee if the dispute results from an unauthorized payment.\nFor all other Afterpay\/Clearpay disputes you will be charged a dispute fee, regardless of the outcome of the dispute. This fee is booked using the PaymentCost journal type. This journal type is included in the Settlement details report and the merchant payout details sheet in the Monthly and Daily finance reports.\nSee also\n\n\n                    Dispute webhooks\n                \n                    Manage disputes\n                \n                    Disputes API\n                \n","type":"page","locale":"en","boost":17,"hierarchy":{"lvl0":"Home","lvl1":"Risk management","lvl2":"Chargeback guidelines","lvl3":"Afterpay and Clearpay chargebacks"},"hierarchy_url":{"lvl0":"https:\/\/docs.adyen.com\/","lvl1":"https:\/\/docs.adyen.com\/risk-management","lvl2":"https:\/\/docs.adyen.com\/risk-management\/chargeback-guidelines","lvl3":"\/risk-management\/chargeback-guidelines\/afterpay-chargebacks"},"levels":4,"category":"Risk Management","category_color":"green","tags":["Afterpay","Clearpay","chargebacks"]},"articleFiles":{"afterpay-noc-flow.png":"<img alt=\"\" src=\"https:\/\/docs.adyen.com\/user\/pages\/docs\/10.risk-management\/21.chargeback-guidelines\/afterpay-chargebacks\/afterpay-noc-flow.png\" \/>","afterpay-old-rfi-flow.png":"<img alt=\"\" src=\"https:\/\/docs.adyen.com\/user\/pages\/docs\/10.risk-management\/21.chargeback-guidelines\/afterpay-chargebacks\/afterpay-old-rfi-flow.png\" \/>"}}