A chargeback happens when a cardholder questions the payment made with their card issuer. The card issuer then creates a formal chargeback which reverses the payment right away. This amount paid, along with the corresponding dispute fee (₱ 800) imposed by the schemes (Ex. MasterCard and Visa), is deducted from your account balance.
In the case of a chargeback, there is a dispute resolution process where you can respond and submit evidence to make a case that the payment was valid. If the chargeback is in your favor, the amount disputed and its corresponding fee is returned. If the chargeback is confirmed, and the card issuer’s decision is final then the cardholder’s payment will remain refunded.
How am I informed about the chargeback?
When the cardholder files a chargeback on a payment made with their card issuer, PayMongo will reach out to you directly via email informing you about the formal dispute made.
What to do if a chargeback is filed?
Upon receiving an email informing you about the chargeback filed by the cardholder, you will need to respond with an email submitting proof of the transaction depending on the dispute.
Before responding with proof of the transaction, you may want to reach out to your customer and discuss what happened. A possible scenario would be that they did not recognize or remember the transaction when they viewed their statement.
When responding to the email informing you about the chargeback, you will have to share any type of information that you think the card issuer might want to see as dispute evidence. Take note, you will only have a limited time period where you can respond to disputes (usually 7-21 days) — the amount of time will be provided within the dispute information. If the time passes, you may no longer respond and submit evidence supporting the case. It takes the card issuer 60-75 days to reach a final decision.
After a response is submitted, you will get an email from PayMongo confirming that we have received the evidence and passed it onto the card issuer. Once an outcome is decided on by the card issuer, you will receive an email with the decision.