When a customer has a dispute, it it usually due to an innocent mistake and can be resolved directly between the merchant and the customer. In the first instance, the customer should always contact the merchant and attempt to resolve this amicably.
If the customer is unhappy with the outcome or decides to dispute the payment with their card provider, a chargeback process usually begins. We will inform you of any chargebacks related to a transaction you have made and it is your responsibility, as the merchant, to provide any requested information within 7 working days.
When you have provided the requested information, this is then passed on to the customer's card provider to review with their risk team.
If the customer is successful in their claim or the requested information is missing or incomplete, a chargeback fee (up to £20) will be applied by the card provider. We will deduct both the chargeback fee and the original amount your customer paid from your balance, or from your linked bank account if you do not have enough balance to cover the total amount. The original amount will then be automatically returned to the customer.
If the customer is not successful in their claim, no action will be taken and no fees will apply.
Chargebacks are a common part of accepting card payments, but you can take steps to help reduce and prevent chargebacks:
- Ensure the company name you advertise matches the name you have registered when opened your account
- Ensure you add a customer to every payment you take
- Get the customer to sign their receipts and invoices
- Clearly communicate your terms of sale and refund policy
- Do not proceed with a declined payment until the customer has contacted their bank
If you are concerned about taking a payment that could result in a chargeback, you should obtain a 'Code 10 Authorisation'. This is a universal measure that allows any merchant to alert a payment processor that a suspicious payment is being made. The operator will ask a series of questions and you should follow the operator's instructions to avoid any incident.
You can obtain a Code 10 Authorisation from Paysafe - our payment processing partner - by calling +44 (0) 800 294 140