A chargeback can occur for several reasons, mainly if a cardholder notices a transaction which they haven’t authorised or don’t recognise.
Under the rules prescribed by the card schemes, you may be charged back for the value of a transaction if it’s deemed to be an invalid or unacceptable. In most cases, the value of the disputed transaction will be automatically debited from your nominated account.
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.
Scenarios where chargebacks can occur:
- unauthorised transactions and unauthorised use of card
- incorrect transaction amount
- processing error
- transactions performed on a lost or stolen card
- failing to respond to a retrieval request.