Pay by Card: Introduction to Disputes & Chargebacks – Rvvup

Introduction to Disputes

If you accept card payments online, it’s important to be familiar with the disputes process. Disputes and chargebacks are a standard part of payment processing and Rvvup is here to support you before, during, and after a disputed charge from a customer.

What is a chargeback?

A card chargeback occurs when a customer disputes a charge on their card and asks the card issuer to reverse the transaction. This can happen for various reasons, such as fraud, a billing error, or a product or service not meeting the customer's expectations. When a chargeback is initiated, the merchant is notified and given an opportunity to respond to the dispute.

How do chargebacks work?

When a customer initiates a chargeback, the payment is temporarily reversed while the dispute is investigated. The process typically follows these stages:

Customer Initiation: The customer contacts their bank to dispute a charge.
Issuing Bank Review: The customer’s bank assesses the validity of the claim and may reverse the transaction while they investigate.
Merchant Response: The merchant is notified and given the opportunity to provide evidence to dispute the chargeback.
Resolution: Based on the evidence provided by both the customer and the merchant, the bank makes a decision. If the bank sides with the customer, the chargeback stands and the merchant loses the funds

Why do chargebacks happen?

Chargebacks can arise for a variety of reasons, typically falling into three main categories:

Fraudulent transactions: The customer claims they did not authorise the transaction, often because their card details were stolen or used without their knowledge.
Customer disputes: These happen when the customer feels that the goods or services received were not as expected or were never delivered.
Processing errors: A chargeback can result from issues such as duplicate billing or incorrect transaction amounts.

How can you prevent chargebacks?

While it’s impossible to prevent every chargeback, there are steps you can take to reduce the likelihood:

Clear communication: Ensure product descriptions, pricing, and return policies are transparent to avoid misunderstandings.
Timely fulfilment: Ship products promptly and provide tracking information to customers to avoid delivery-related disputes.
Customer service: Offer a responsive support channel for customers to resolve issues directly, before escalating to a chargeback.
Fraud protection: Implement fraud detection tools and monitor for suspicious activity to catch unauthorised transactions early.

What should you do if you receive a chargeback?

If a chargeback is issued, it’s important to respond quickly and accurately. Providing detailed evidence, such as proof of delivery, customer communications, and transaction records, can strengthen your case. Each chargeback reason will require specific types of evidence, so be sure to understand the requirements for each.

If one of your customers opens a dispute, Rvvup will send a notification to the Rvvup account owner’s email address. The email will come from support@rvvup.com and include information about the original payment and the reason your customer is disputing the charge.

It is very important that once a chargeback is received, a refund should not be issued, as this will lead to the funds being debited and returned to your customer twice.

What are the Fees for Chargebacks?

When your customer initiates a dispute, a non-returnable chargeback fee of £15 is assessed and automatically debited from your account.

If the initial dispute is not settled and a further challenge is requested, a second round of arbitration could levy fees from Visa or Mastercard in the £500-1250 range if you are unsuccessful in this process. Our team will work closely with you if this situation arises to understand these potential fees before continuing with an open dispute.

Need additional help?

Have more questions? Please reach out at any time to support@rvvup.com