 What is a chargeback? |
A chargeback is a formally disputed transaction by the cardholder or the cardholder’s issuing bank. You must minimise chargeback risk at the time of sale by complying with card schemes’ guidelines and requirements. |
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 Who deals with the chargeback? |
The customer's issuing bank deals with the chargeback on behalf of the customer. The acquiring bank (AIB or Elavon) will dispute on your behalf, using any evidence or information you may have on the transaction. When the acquiring banks defend your cases, they send a “re-presentment” to the issuing bank to support the validity of the disputed transaction. Blink cannot be involved in any stage of the dispute process. |
What are common reasons for customers to raise a chargeback? |
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Stage 1 | The customer contacts the card issuer to tell them which transaction they wish to reverse. |
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Stage 2 | The issuer investigates the claim to verify what the cardholder is saying. |
Stage 3 | If the issuer agrees they will recover the money from the merchant’s account and provide a conditional refund to the cardholder, and advises the acquiring bank, who in turn advise the merchant. |
Stage 4 | The merchant can review the issuer’s decision and choose to contest it by submitting their own evidence to support their position, for example a delivery signature. This goes back to the acquiring bank, and then on to the card issuer. |
Stage 5. | The card issuer evaluates what each side has said and if the merchant’s case is considered more persuasive than the cardholder’s they will reverse the conditional refund, concluding the chargeback. |
Stage 6 | However if the card issuers finds in favour of the cardholder the merchant can pursue the matter further and ask for it to be reconsidered, and provide further evidence if it is available. |
Stage 7. | The final decision in favour of one party or the other, which is made by the card scheme rather than the issuer, cannot be challenged further, other than through the process of bringing the matter before a court. |
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