PayXpert - User documentation
Chargebacks
A chargeback is a transaction that is returned to the cardholder after it has been disputed with their issuing bank. It occurs when the card issuer reverses a previously completed credit or debit card payment because it may be unauthorised, fraudulent, or non-compliant with payment scheme rules. For example, chargebacks may arise in cases of fraud, non-receipt of goods or services, items that are faulty, not as described, or cases of processing errors.
It is important to note that refunds should not be processed once a chargeback has been initiated, as the transaction is already being handled through the card issuer and payment scheme, and issuing an additional refund can create complications.
When a chargeback is raised, the disputed amount is typically provisionally credited back to the cardholder by their bank. Processing a refund at this stage can result in a duplicate refund, meaning the customer may receive the funds twice - once via the chargeback and once via the refund.
Additionally, processing a refund does not stop or cancel the chargeback process. The dispute will continue to progress through the scheme unless it is formally managed through the chargeback response process. This can lead to unnecessary financial loss, as well as administrative confusion when reconciling transactions.
All merchants should take proactive steps to minimise the risk of chargebacks by setting clear expectations and maintaining transparent communication with customers. This includes providing easily accessible terms and conditions, accurate product descriptions, clear delivery timelines, and responsive customer support channels. Promptly addressing customer concerns and offering refunds where appropriate can often prevent disputes from escalating. Nevertheless, some chargebacks are inevitable and should be managed through an effective dispute handling process.
The Chargebacks section within the Risk menu provides details of transactions that have resulted in a chargeback. This indicates that the chargeback process has been completed and the final outcome is that the merchant has been debited by the acquirer. This may occur where chargebacks are deemed non-defendable and are awarded to the cardholder, or where they are potentially defendable but sufficient evidence was not submitted or was inadequate to support the case.
To view any received chargebacks, navigate to the Risk tab and select Chargebacks:
This step will display a list of chargebacks.
Chargebacks have the same “Transaction ID” as their original sale/capture/rebill:
Drilling down on a chargeback
There are two ways to learn more about a chargeback on the list. The first is by clicking the Transaction ID links, and the second, by selecting the View button in the Actions column.
Quick view to transaction
The first path is through the “quick view” of a given chargeback:
Clicking on its blue Transaction ID, a window appears, giving you the original transaction and the chargeback that resulted from it:
From this window, complete information on the original transaction can be accessed by clicking the blue Transaction ID. This serves as a shortcut to the Transactions tab within the Processing menu:
From this view, any additional transactions linked to the original transaction—the one that resulted in a chargeback—can be accessed in the Related Transactions tab.:
This view allows access to the original sale that occurred months before the shopper was rebilled. The transaction can also be opened for review, if needed.
View chargeback
Another way to drill down deeper on a chargeback is by clicking the View button in the Actions column of the chargebacks list:
When accessed this way, the following screen is displayed:
In the “Related Transactions” tab—while still viewing the chargeback—both the original transaction and the chargeback details are displayed, along with any other events linked to the original payment.
Chargebacks can also be viewed by filtering transactions in the Transactions area of the Backoffice:
Go to the Processing tab and select Transactions.
Expand the Transaction parameters filter group:
In the Type field, select Chargebacks.
Click Filter.
Chargeback reason codes
Unlike the result codes for credit card transactions, which are standardised across the industry, chargeback reason codes vary by card scheme. Whenever possible, the reason for the chargeback is provided alongside the code.
For a full list of chargeback reason codes, please refer to the related article link below.