See Also:

Introduction


Chargebacks (also referred to as Disputes) can be complex.

All chargebacks are disputes, but not all disputes reach the chargeback stage. A dispute is a claim filed by a cardholder or issuing bank, and it may be processed in one or multiple stages in order to receive a resolution.

  • There are various cycles and the status of the dispute case is defined by both the current cycle and current status, not just status alone.

  • There can be multiple records associated with the same dispute and understanding the status of the dispute requires an understanding of each of the chargeback records

  • There are multiple cycle/status combinations where the status of the dispute is not final, i.e., winning the re-presentment does not necessarily mean winning the dispute.

Cycle and Status

A single dispute case can have multiple chargeback records with different cycles and statuses. These include:

Retrieval

This is usually a precursor to actual chargeback where the issuer is requesting for documentation such as receipts, terms and services or proof of purchase. The chargeback cycle of Retrieval will not change and there is no financial impact to merchant

First Chargeback and Re-presentment

Chargeback status of first usually indicates an incoming chargeback that has not been responded to, or has been pre-determined as Won or Lost. Once responded to, a first chargeback becomes a re-presentment. In most cases, a first chargeback will trigger a debit to the merchant and a re-presentment will trigger a credit to the merchant.

Pre-Arbitration Chargeback

The pre-arbitration chargeback is also referred to as the second chargeback. This is where issuer rejects the re-presentment and decides to pursue the chargeback further. This typically results in a debit to the merchant, same as first chargeback. When a pre-arbitration chargeback is responded to by the merchant, it usually results in a credit to the merchant, same as re-presentment.

Arbitration Chargeback

If a merchant responds to a pre-arbitration and issuer does not accept the response, the case becomes an arbitration chargeback. The merchant can then either choose to accept liability, or ask the card network to make a final decision at a cost.

Chargeback Cycle / Status combinations

Won

Lost

Open

First

Final

Final

Re-presentment

Final

Pre-Arbitration

Arbitration

Final

Final

Retrieval

Reversal

Final

  • Final = Dispute is final. The case is closed and can no longer be responded to.

  • Green = Chargeback results in merchant receiving a credit.

  • Orange = Chargeback results in merchant being debited.

  • Yellow = No financial impact to the merchant.

  • Grey = Not valid.

Chargeback Cycle / Status Transitions

Chargeback API Endpoints

There are 5 API endpoint resources associated with chargebacks, however all that a Partner will generally use is /chargebacks which will return all the necessary results necessary to track the stages of a chargeback.

/chargebacks
Main API endpoint containing list of chargebacks

Incoming Chargebacks

Incoming chargebacks can be managed either through web hook notifications or through pulling data directly.

Chargeback Webhook Notifications

Standard Notifications

chargeback.created

A new chargeback has been created

chargeback.updated

A chargeback has been updated

Status Notifications

chargeback.opened

Chargeback status changed to open

chargeback.closed

Chargeback status changed to closed

chargeback.lost

Chargeback status changed to lost

chargeback.won

Chargeback status changed to won

Chargeback Data Collection

We recommend data to be synchronized daily either by “created” or “modified” fields.

Below is a sample query which retrieves all chargebacks created on Nov 2nd, 2020:

GET /chargebacks
SEARCH: created[like]=2020-11-02%25
CODE

Chargeback Fields

id

System generated ID

created

Timestamp of when chargeback was created

modified

Timestamp of when chargeback was last modified

creator

Login ID of the user created the chargeback

modifier

Login ID of the user who last modified the chargeback

merchant

ID of the merchant (merchants) resource

txn

ID of the transaction (txns) resource

mid

Processor MID

description

Description

total

Total amount of the chargeback

representedTotal

Total amount of the representment

cycle

Cycle of the chargeback

currency

Currency Code

platform

The processor platform ID

ref

Chargeback Reference Number

reason

Reason for the chargeback

reasonCode

Reason Code for the chargeback

issued

Date the chargeback is issued (YYYYMMDD)

received

Date the chargeback was received by processor (YYYYMMDD)

reply

Latest date by which the response must be received by (YYYYMMDD)

bankRef

Bank Ref

chargebackRef

Chargeback Ref

status

Status

lastStatusChange

ID of the last chargebackStatuses

inactive

Inactive

frozen

Frozen

actionable

Whether the chargeback is actionable (i.e. can be responded via API)


Additional Chargeback Information

See Chargeback Guidelines and Tips for additional information.