This article is designed to guide Merchants on how to handle a chargeback that appears in your account. You will receive an email from Splitit (if your email address is subscribed to chargeback updates) when a chargeback is filed, a reminder before evidence submission is due, and again once the chargeback is resolved (can take up to 120 days).
- If you are not receiving emails about chargebacks, and want to receive them, please send an email to success@split-it.zendesk.com and your Account Manager will connect with you directly on the request.
Splitit receives very limited information on Chargebacks from the card issuer, and we provide you with everything we have. There is no intervention Splitit can do on chargebacks as they are handled between the customer and their card issuer.
Please review our available documentation on chargebacks in this article: https://developers.splitit.com/category/chargebacks-management
Here are two additional articles within the above document that are especially important:
- Viewing a Chargeback in the Hub: https://developers.splitit.com/merchant-hub/chargebacks-management/chargebacks-overview
- Applicable for all Merchants
- Evidence Guide: https://developers.splitit.com/merchant-hub/chargebacks-management/chargebacks-evidence-guide
- Use this guide if you plan to dispute the chargeback in our portal. Not all Merchants do this, so it only applies if you dispute within our Hub portal.
Should you have any questions, reach out to our Support team here and select the contact reason of "Help with a Chargeback." This will ensure the right team is reviewing your case.
Additional Information:
Chargeback Statuses
Open: Chargeback case has been opened for review
Pending: A dispute has been submitted and is awaiting a result
Closed: Chargeback case closed by the shopper or issuer
Lost: Chargeback case ruled in favor of the shopper
Won: Chargeback case ruled in the merchant's favor
Other: Other reasons such as unrecognized
FAQs
How long does the chargeback process take?
The chargeback process timeline varies depending on several factors, including the reason for the chargeback, the card network involved, and the efficiency of the parties involved in the resolution process. Typically, it can take up to 120 days.
How can I prevent chargebacks in the future?
Preventing chargebacks involves a combination of proactive measures, effective communication, and adherence to best practices including:
- Clear product descriptions
- Transparent billing descriptors
- Secure payment processing
- Excellent customer service
- Clear refund policy
Glossary
Capture Date: The date when a transaction is processed
Chargeback: A reversal of a transaction, initiated by the cardholder's bank, usually due to a dispute over the transaction
Chargebacks "Pending Decision": This indicates that the review process for the initiated chargeback is ongoing. The issuing bank, acquiring bank, and possibly the merchant are examining the details of the dispute to determine its validity and decide whether the chargeback will be upheld or rejected
Chargeback Reverse: A term used to describe the process in which a previously disputed transaction, initially refunded to the customer through a chargeback, is resolved in favor of the merchant. Consequently, the funds are returned to the merchant's account
Holding Period: The "Holding Period" refers to the duration during which a reserve amount, is held to mitigate the risk of a chargeback. During this time, the funds are not accessible to the merchant. This period typically lasts 120 days, ensuring that any potential chargeback claims can be processed and resolved before the reserved funds are released to the merchant
Reserve: A portion of funds held back from the merchant to cover potential chargebacks or disputes