What Is a Chargeback?
A chargeback occurs when a cardholder disputes a transaction with their card-issuing bank. Under card-network rules, cardholders generally have up to 120 days from the purchase date to file a dispute.
When a chargeback is initiated:
Credit to the customer: The card issuer typically credits the customer once the dispute is filed. This credit is temporary and will be reversed if the customer loses the dispute. It will become permanent if the customer wins the dispute.
Immediate debit: The disputed amount is automatically withdrawn from the merchant’s bank account.
Formal notification: The merchant receives an official notice from their payment processor or acquirer. This letter includes the order details (transaction amount, chargeback code, and customer information) along with instructions and deadlines for responding.
Merchant response
The merchant has the right to contest (dispute) the chargeback. To do so, the merchant submits supporting evidence—such as proof of delivery, signed receipts, or communication records—that demonstrates the transaction was valid and contradicts the cardholder’s claim. If the Merchant is operating with their own gateway, the evidence must be submitted through your gateway account; it cannot be submitted in the Splitit portal. If the Merchant operates on our gateway, you need to submit your evidence in the Splitit Hub.
The card network reviews the evidence and issues a decision, which may return the funds to the merchant if the dispute is resolved in their favor.
You can find more detailed information about Chargebacks here https://developers.splitit.com/category/chargebacks-management