Dispute Management

There are two ways to dispute a chargeback.

Manually Disputing Chargebacks

For information on how to manually dispute chargebacks refer to the Payment dispute section, and to know more about chargebacks read chargeback guidelines.

Automatically Disputing Chargebacks

Using our auto-defense system we automatically dispute applicable chargebacks with no action needed on the part of the merchant. These chargebacks include:

  1. Already refunded transactions (in which the refund occurred before the chargeback was sent).

  2. Situations in which there is a liability shift (such as with 3D Secure or ApplePay payments).

  3. Chargebacks that include technical errors that invalidate them (such as when a chargeback is sent outside of the timeframe allowed by the schemes).

Chargeback guidelines

Chargeback process is used by an issuing bank either on behalf of or at the request of a cardholder to remove a charge from the cardholder's account and to collect back funds. The issuing bank or the cardholder can initiate a chargeback for various reasons including clerical errors, such as duplicate billing, to fraud claims which may be associated with identity theft. 
The chargeback may be preceded by a request for information called a retrieval request. The intent of this guide is to provide information concerning the chargeback process, including retrieval requests, and to help the merchant in their decisions concerning which chargebacks to dispute and how to do so successfully.

Adyen is not responsible if the card scheme rules in favour of the Issuer. This guide is meant only as a guideline. 

Terms associated with the chargeback process:

Term Description
Arbitration Review conducted by Mastercard, Visa, or Discover to determine the responsibility for a chargeback related dispute.
AVS A cardholder verification tool designed to reduce the risk of card-not-present (CNP) transactions in mail and telephone orders. AVS helps reduce the risk of accepting fraudulent transactions by facilitating verification of the cardholder's billing address with the card issuer. Verification results help the merchant determine whether to accept a particular transaction or to take further follow up action.
Open arbitration event

Adyen feature that indicates the issuing bank has rejected the merchant's r epresentment or dispute and is filing a second chargeback in an effort to continue the dispute and recapture the associated funds.

Cardholder The person to whom a financial transaction card is issued or an additional person authorized to use the card.
Chargeback The reversal of a charge against a Cardholder's account initiated by the issuing bank.
Chargeback period The number of calendar days (counted from the transaction processing date) during which the issuer has the right to charge the transaction back to the acquirer. The number of days varies from 45 to 180 days depending upon the type of transaction.
Chargeback process A mechanism used by an issuing bank either on behalf of or at the request of a cardholder to remove a charge from the Cardholder's account and to recover the funds.
First chargeback cycle The sequence of events encompassing the first chargeback issued by the credit card company or issuing bank to the merchant. When the merchant receives the first chargeback they have the option to accept the chargeback or dispute and represent it back to the issuing bank.
Issuer Any Discover, Mastercard, American Express or Visa member, or a commercial organisation that establishes and maintains customer credit lines accessed through the use of a card.
Merchant Any entity that sells products or services to their customers.
Representment

An action used when a merchant wants to dispute liability (responsibility) for a chargeback. The merchant should attach supporting documentation to the chargeback case prior to taking this action.

Representment cycle The sequence of events that occur when a merchant chooses to dispute a chargeback and the transaction is sent back to the credit card issuer to reverse the chargeback.
Arbitration

An action used when the Acquirer continues a dispute beyond the arbitration chargeback based upon the merits of the case.

Pre arbitration An action used when submitting an arbitration chargeback to an issuing bank for review. Pre arbitration is a less formal process than arbitration involving only Adyen and the Issuing bank.
Reason code A code used to provide additional information regarding the nature of a chargeback, subsequent presentment, fee collection, funds retrieval request - The request from the issuer to the acquirer either for an original or legible copy of the transaction information document or for a substitute draft.

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