What is a chargeback?

What is a chargeback?

A chargeback is a transaction that has been disputed by the cardholder. Chargebacks occur for a variety of reasons: the cardholder may not recognize the purchase, the item the cardholder received may not be what was advertised, etc. Merchants generally have the opportunity to contest or concede the chargeback. If you decide to contest the chargeback, you will need to supply specific evidence based on the chargeback type.

Once WePay learns that the chargeback has occurred, we will automatically debit the funds from your WePay account. If you win the chargeback, we will return these funds to your WePay account.


What happens when I receive a chargeback?

WePay provides information and guidance for merchants who receive chargebacks. We keep you informed on the status of your chargeback as well.

Below are the steps that happen when a chargeback is initiated by the cardholder:

  • If the merchant concedes the chargeback, the chargeback is resolved in favor of the cardholder
  • If the merchant challenges the chargeback, they must provide supporting evidence
    • WePay is notified about the chargeback by the cardholder’s bank
    • WePay automatically debits the funds from the merchant’s account to cover the chargeback cost, and we notify the merchant about the chargeback
    • If applicable, the merchant can decide to contest or concede the chargeback
      • WePay submits the supporting evidence to the credit card network for their decision on the chargeback.
        • If the credit card network rules in the cardholder’s favor, the funds are not returned to the merchant.
        • If the credit card network rules in the merchant’s favor, the funds are debited to the merchant’s account.
        • In both scenarios, WePay will notify merchants of the credit card network’s decision. 


How am I notified that I have received a chargeback?

You will receive a notification via email that you have received a chargeback. This e-mail will contain pertinent details about the chargeback as well.


What should I do if I receive a chargeback?

When you receive a chargeback, you should review the information carefully, particularly the chargeback type. You may be given the option to contest or concede the chargeback. If you concur with the cardholder, click “Concede”. If you want to contest the chargeback, consult this page to see what documents you will need to submit.

Once you have gathered all of the documents, you can click the “Contest” button and upload your documents. Please keep in mind that there are size limitations on files, so you may want to submit screenshots if necessary. For instance, if you would like to submit your refund policy but the file size is too large, you can take a screenshot of the page with the cardholder’s signature.

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