You can set up a chargeback fee for an individual merchant or a group of merchants to offer them the ability to manage most chargeback cycles through your platform. A chargeback and dispute handling fee can trigger only during the following stages of the chargeback dispute process:
New Chargeback: When the initial dispute is opened by the cardholder
Retrieval: The initial request from the Issuer to the merchant for transaction information
Arbitration: The final stage of the chargeback that occurs only if the previous stage was challenged by the cardholder or merchant, during which the card issuing institution reviews the dispute information and makes a final ruling
This tutorial shows you how to create a fee that triggers when a chargeback is initiated against one of your merchants.
Audience: Partner
Set Up a Chargeback and Dispute Handling Fee
Ensure that you complete the prerequisites and all tasks in a section to enable the respective fee.
Prerequisites
Before attempting this tutorial, you must:
Meet the general prerequisites described in Get Started with Use Case Tutorials.
Understand the types of fees you can create and how to structure them.
Set Up a Chargeback Fee for a Group of Merchants
Complete all steps in the following sections.
Open the Group Profile
Click GROUPS in the left navigation panel to open the Merchants page.
Locate the group in the table and select any information in the table row to open the Group Profile page.
Add a Fee to the Group Profile
Click FEES in the list of tabs on the left side of the page.
Click ADD FEE in the upper-right corner of the page to open the Add Fee dialog on the page.
On the When to Schedule Fee dropdown menu, select one of the following:
Chargeback: Trigger a fee when the chargeback is initiated by the cardholder.
Retrieval: Trigger a fee when the chargeback retrieval is processed.
Arbitration: Trigger a fee when the chargeback arbitration is processed.
On the How Much is the Fee dropdown menu, select ACTUAL.
Important!
Do not create or apply surcharges because legal complications can occur. Visa and Mastercard specifically prohibit the application of surcharges to cardholders on their card brand networks respectively.
Enter the fee as a dollar amount in the Amount field.
Tip
If you’re unsure of how much to charge for a specific fee type, refer to the Visa and Mastercard card brand network guidelines.
Enter the date on which the fee becomes effective.
Tip
Using today’s date as the Fee Start Date is recommended to make the fee effective immediately.
The start date default setting in the Add Fee dialog will use today’s date. If you need to change or reset the fee start date, click on the CALENDAR icon under the Fee Start Date section and select the start date.
(Optional) Click ADVANCED OPTIONS to open the Advanced section, where you can add a charging entity, collection information, or conditional rules for the fee.
Click ADD to finish the setup.
Result: The fee is now visible in the group profile fees tab, and will trigger when a chargeback is initiated against any merchant associated with that group.
Set Up a Chargeback Fee for an Individual Merchant
Complete all steps in the following sections.
Open the Merchant Profile
Click MERCHANTS in the left navigation panel to open the Merchants page.
Locate the Merchant in the table and select any information in the table row to open the Merchant Profile page.
Add a Fee to the Merchant Profile
Complete all steps listed in the Add a Fee to the Group Profile section.
Result: The fee is now visible in the Merchant Profile Fees tab, and will trigger when a chargeback is initiated against that merchant.
Next Steps
After adding the new fee, review the following guides for information on related topics:
Set Up a Transaction Fee: Set up transaction fees for a merchant account or group.
Enable Chargeback Event Alerts: Create an email alert that will trigger when a chargeback is created or updated.