Chargeback Handling Procedure
Our end-to-end chargeback and dispute handling process in compliance with Visa and Mastercard rules and best practices.
Purpose and Scope
Purpose
This document describes our end-to-end chargeback and dispute handling process. It provides our acquiring bank and payment partners with a clear understanding of how we prevent, manage, and respond to disputes.
Scope
This procedure applies to:
- All Visa and Mastercard transactions processed by the merchant
- All disputes, inquiries, and chargebacks received across e-commerce channels
- Prevention, intake, analysis, representment, and post-resolution activities
Chargeback Management Approach
Our strategic framework for dispute handling
Proactive Prevention
Early-warning and resolution tools to prevent disputes
Efficient Resolution
Resolve disputes before escalation to formal chargebacks
Strategic Representment
Use card network-approved evidence standards
Ratio Management
Maintain dispute and fraud ratios within network thresholds
Refund Policy Disclosure
Customer transparency and acceptance
Non-Refundable Transaction Policy
By default, transactions processed by our platform are non-refundable, unless otherwise required by applicable law or where an exception is granted at our sole discretion.
Customer Disclosure & Acceptance
Customers are clearly informed of the non-refundable nature of transactions prior to payment acceptance and authorization:
- Disclosure during the checkout flow
- Presentation within the Terms & Conditions
- Mandatory customer acknowledgment prior to completing payment
This transparency ensures that cardholders are fully aware of purchase conditions at the time of authorization and reduces the likelihood of valid service-related disputes.
Dispute & Chargeback Prevention Tools
Automated systems to prevent disputes before escalation
Visa Rapid Dispute Resolution (RDR)
Automatically refund eligible low-risk disputes before formal chargeback creation
- Decision logic based on transaction value and fraud indicators
- Prevents dispute escalation into chargebacks
- Active rules for automated processing
Mastercard Ethoca Alerts
Near real-time notifications of cardholder disputes for immediate action
- Immediate transaction review upon alert
- Fulfillment halted where possible
- Refunds issued within alert window
- Preventive actions on customer accounts
Visa CDRN
Consumer Dispute Resolution Network for early dispute resolution
- Issuer-originated dispute alerts
- Review and action within required timeframes
- Resolve disputes before chargeback creation
Chargeback Intake Procedure
How chargebacks are received and logged
Notification Sources
- •Acquirer settlement files
- •Processor dashboards
- •Card network dispute systems
Case Logging
Each case is logged with:
- •Reason code
- •Date received and response deadline
- •Transaction and order identifiers
- •Customer account reference
Analysis & Decision Framework
How disputes are categorized and evaluated
Dispute Categorization
Refund Policy Consideration
Disputes related to "No Refund," "Canceled," or similar categories are evaluated for representment eligibility based on documented customer acceptance.
Representment Workflow
Evidence-based dispute response process
Evidence Collection
Gather comprehensive documentation based on dispute type.
- Transaction records and order details
- Account access and usage logs
- IP address, device, and geolocation data
- Customer communications and policy acknowledgments
Apply Network Standards
Use Visa CE 3.0 or Mastercard FPT evidence frameworks.
- Visa CE 3.0: Submit 2+ prior undisputed transactions with matching digital identifiers
- Mastercard FPT: Provide account creation, login history, device fingerprint continuity
- Follow card network formatting and eligibility requirements
Submission & Tracking
Submit representment through approved channels and monitor outcomes.
- Track submission deadlines
- Monitor acceptance confirmations
- Record outcomes at each dispute stage
- Document root cause classification
Visa Compelling Evidence 3.0
For eligible Visa fraud disputes:
- •At least two prior undisputed transactions
- •Matching digital identifiers (device, IP, credentials)
- •Behavioral consistency demonstrating legitimate activity
Mastercard First-Party Trust
For first-party misuse disputes:
- •Account creation and login history
- •Device fingerprint continuity
- •Transaction and behavioral patterns
- •Prior undisputed usage
Post-Resolution Processing
Learning and optimization from dispute outcomes
Outcome Review
For each resolved case, we record:
- •Root cause classification
- •Repeat dispute indicators (account, device, BIN)
Process Optimization
Insights are used to refine:
- •RDR rules and thresholds
- •Ethoca and CDRN response logic
- •Fraud scoring and transaction monitoring
- •Checkout verification and customer messaging
Record Keeping & Compliance
We retain:
- Chargeback and dispute records
- Evidence submitted
- Refund and settlement documentation
Records maintained for minimum 3 years, or longer if required by network or acquirer rules.
Reporting & Communication
Regular reporting to internal stakeholders includes:
- Chargeback and fraud ratios
- Root cause analysis
- Preventive tool performance
- CE 3.0 and FPT utilization metrics
Continuous Improvement
We continuously review:
Process improvements are implemented to maintain compliance and minimize dispute exposure.