What is a chargeback
Chargeback means a reversal of a payment. It happens, when a customer makes a chargeback on a transaction made on their credit or debit card.
Before the customer can make a chargeback, there are some requirements that the customer has to meet. Firstly, the customer has to have made attempts to contact the company regarding the transaction. Secondly, the customer has to sign a sworn statement, before the chargeback can be registered.
When a chargeback has been made, the cardholder will receive a refund of the money within 48 hours. Afterwards, you as a business owner has to decide how to handle the chargeback.
The most common reason for chargebacks is that the customer doesn’t recognise the transaction. Thereby the customer doesn’t know to what the payment refers.
Other reasons for chargebacks can be that the purchased product hasn’t been delivered. It can also be due to something being wrong with the delivered product. In cases of fraud, where a card has been either stolen or misused, a chargeback can also be made.
If you receive a chargeback
Should a chargeback be made on a transaction made through Yourpay, you will receive notice through e-mail. You are also able to review chargebacks on your admin page.
If you receive a chargeback, you have to decide whether you want to accept or defend it.
If you choose to accept the chargeback, then your customer maintains the right to the payment. This will subsequently be deducted from your Yourpay account in addition to a fee of 300 DKK.
You also hae the opportunity to defend the chargeback and thereby attempt to avoid the loss. When Yourpay contacts your, you will be asked to submit documentation regarding the transaction. This is necessary in order to defend the case.
You have to be able to document that a purchase has been made, and that the product has been delivered in the correct quality. In general you should be able to document the entire purchase process and if you have any dialouge with the customer, e.g. on e-mail, then this can also be used as documentation. If you can show an invoice for the purchase or a signed receipt for the package, then this can also be used.
If you loose the case of the chargeback, you will in addition to the refund of the payment also be charged a fee of 300 DKK. If you win the case, there will be no costs for you.
We recommend that if you have received a chargeback, you should make sure that you review the reasons for the chargeback. Thereby you are able to work effectively with thos reasons in order to avoid future chargebacks.
For example, many chargebacks are made due to the customer not being able to recognise the transaktion. Therefore, it could be a good idea, to make sure that it is the correct company name appearing on the customer’s bank statement.
If your store or webshop has a different name than your actual company, then you have the opportunity of having a company sub-name listed on receipts and statements.
We also recommend that you make sure to have all your documentation in order. This is documentation regarding both purchase and delivery. But also if there has been any dialogue with the customer.
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