A chargeback can occur for several reasons, mainly if a cardholder notices a transaction which they haven’t authorised or don’t recognise.
With DEFT, the most common reason for chargebacks is when a payer has fallen victim to a scam. This involves the scammer using an innocent third-party’s stolen card to pay via DEFT.
A chargeback will also occur if you don’t respond to a retrieval request, the request is left unanswered or the supporting documentation you’ve supplied isn’t sufficient/not accepted by the cardholder’s bank.
Other scenarios where chargebacks can occur include:
- unauthorised transactions and unauthorised use of card
- incorrect transaction amount
- processing error
- transactions performed on a lost or stolen card