How to handle a chargeback?

Chargeback is also known as dispute, it occurs when the cardholder questions a payment with their card issuer. The card issuer creates a formal dispute which immediately reverses the payment - you might noticed this from your bank statement or your account balance. 

For credit card transactions, the cardholder usually has up to 120 days after the purchase to file a chargeback claim, depending on the issuer. For debit transactions, the filing window is shorter—sometimes as little as 60 days—and the process can be more complicated compared to credit card disputes. The full lifecycle of a dispute, from initiation to the final decision by the card issuer, can take up to 2–3 months to complete.

If a chargeback occurs, you may receive an alert. It’s crucial to promptly gather any relevant evidence and documentation detailing the transaction. A Notch specialist will support you throughout the process.

How to help prevent chargebacks:

• Obtain customer signatures to provide proof of delivery, confirm that a service was rendered, and verify agreement to any applicable disclosure statements.

• Use a recognizable business name on customer statements. Cardholders may initiate a chargeback if they do not recognize the business name that appears on their transaction history.

• Register for fraud-prevention tools such as 3D Secure (3DS), Address Verification Service (AVS), and Card Verification Value (CVV2) to reduce the risk of fraudulent transactions.

• Clearly communicate your return, refund, and cancellation policies at the time of purchase. These should be included on receipts and confirmed through written or electronic agreement from the customer.

• Keep customers informed about the status of their transactions to maintain transparency and build trust.