Charge-backs

How we handle Charge-backs from the bank or customer Disputes.

How do you deal with Chargeback?
If you accept credit cards on your store, then you’ll have to deal with chargebacks or inquiries. When a cardholder has an issue with a charge on their credit card, they can contact their bank to dispute the charge. The bank will then make a chargeback or inquiry. The cardholder can be one of your customers or someone who believes that their card was used on your store without their permission.

If the cardholder’s bank makes a chargeback, then the bank will take the disputed amount from you right away. The cardholder’s bank will also take a chargeback fee from you. If the cardholder’s bank makes an inquiry, then they won’t take the disputed amount or a fee right away.

You can try to resolve the chargeback or inquiry in a few ways. Often, the company that issued the cardholder’s credit card will review any evidence and then close the chargeback in either your favor or the cardholder’s favor. If you win the chargeback, then you get the disputed amount back, and JOALII will refund the chargeback fee. If the cardholder wins the chargeback, then the disputed amount is returned to the cardholder.

  • Chargeback process
  • Inquiry process
  • Resolve a chargeback or inquiry
  • Reasons for a chargeback or inquiry

Chargeback process

This is the typical process for a chargeback:
The cardholder disputes a credit card charge with their bank.
The cardholder’s bank sends a chargeback request to the credit card company, and takes the disputed amount and a chargeback fee from you.
The credit card company asks you for evidence that the charge was valid.
You and JOALII gather evidence to figure out whether the charge was valid.
JOALII sends a response to the credit card company.
The credit card company reviews the evidence. The review can take up to 120 days after the response is submitted.
The credit card company resolves the chargeback.
If you win the chargeback, then the cardholder’s bank will return the disputed amount to you, and JOALII will refund you the chargeback fee. If the chargeback is a partial win, then the cardholder’s bank will return some of the disputed amount to you, and JOALII will still refund you the chargeback fee. If the cardholder wins the chargeback, then the disputed amount and the fee won’t be returned to you.

Chargeback fee
When a bank sends you a chargeback, they’ll also charge you a processing fee. If the chargeback is resolved in your favor, then JOALII will refund this fee. The following list provides a breakdown of the processing :
20 USD in the United States or its equivalent in your local currency.This amount will be subtracted from the sellers account before the next withdrawal is initiated .

Inquiry process
This is the typical process for an inquiry:

The cardholder disputes a charge with their bank.
The cardholder’s bank sends an inquiry request to the credit card company. The credit card company does not take the disputed amount from you.
The credit card company asks you for evidence that the charge was valid.
You and JOALII gather evidence to figure out whether the charge was valid.
JOALII sends a response to the credit card company.
The credit card company reviews the evidence. The review usually takes between 60 and 120 days after the transaction was made.
The credit card company resolves the inquiry.
If the inquiry is closed in your favor, then the disputed amount will be returned to you. If the cardholder wins, then the credit card company will take the disputed amount and a fee from you.

Resolve a chargeback or inquiry
You can help to resolve a chargeback or inquiry in the following ways:

Contact the customer
You can talk to the customer who made the order by phone or email to see if you can resolve the issue. If the customer agrees that the chargeback isn’t necessary, then the customer must contact their bank and ask them to drop the chargeback. You should also submit evidence that shows that the customer agreed to drop the chargeback.

Add additional evidence
After the cardholder’s bank makes a chargeback or inquiry, you’ll have a limited time to submit evidence that the charge was valid. The amount of time that you have to submit evidence depends on the credit card company and the reason for the chargeback. Check with the credit card company to find out the chargeback time limit.

The type of evidence that you should submit depends on the reason that the cardholder asked for a chargeback or inquiry. Keep your evidence relevant and to the point. Consider including proof of customer authorization, service provided, or item delivery. You can also add your terms of service and refund policy. If you are adding any document or images, then make sure you have formatted them clearly so that they can be viewed without zooming or cropping.

If you use JOALII Payments, then JOALII collects evidence and sends a response to the credit card company for you on the due date. You can add additional evidence to the response before the due date. The due date is 7 to 21 days after the chargeback or inquiry is filed.

If you’re using a third-party payment provider, then you should contact your provider to find out how to send evidence to the credit card company.

  • Accept the chargeback or inquiry
  • Accept a chargeback
  • If you think that a chargeback is justified, then you can accept it by not submitting any evidence. The disputed amount is returned to the customer, and you won’t be refunded for the chargeback fee.

Issue a refund to end an inquiry
If you think that the reason behind an inquiry is justified, then you can issue a refund for the order to end the inquiry.

Reasons for a chargeback or inquiry
The type of evidence you should send to the credit card company to resolve a chargeback or inquiry depends on the reason that the customer gave for the chargeback or inquiry. A customer might dispute a charge for one of the following reasons:

  • Fraudulent
  • Unrecognized
  • Duplicate
  • Subscription canceled
  • Product not received
  • Product unacceptable
  • Credit not processed
  • General
  • Fraudulent
  • The chargeback will be marked as Fraudulent if the cardholder didn’t authorize the charge. This is the most common reason for a chargeback and can happen if the card was stolen.

To deal with a fraudulent charge, you can try to contact the customer who placed the order. The customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then you should tell them to contact their bank and say that they want to drop the chargeback. You should still submit evidence to the credit card company, including the statement where the customer said they would drop the charge.

If you think that the customer is mistaken or not telling the truth, then you should submit the following evidence to the credit card company:

  • the date and time that the order was fulfilled
  • the billing information that the customer used
  • the IP address and country used for the order
  • shipping and tracking information for the order.
  • Unrecognized
  • The chargeback will be marked as Unrecognized if the customer doesn’t recognize the merchant name or location on their credit card statement.

To deal with an unrecognized charge, you should try to contact the customer. Sometimes the customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then you should tell them to contact their bank and say that they want to drop the chargeback.

You should still submit evidence to the credit card company, including the statement where the customer said they would drop the charge. You could include some of the following pieces of evidence:

  • the date and time that you fulfilled the order
  • the billing information that the customer used
  • the IP address and country used for the order
  • shipping and tracking information for the order.

Product unacceptable
The chargeback will be marked as Product unacceptable if the customer feels that the product was received but was defective, damaged, or not as described.

Start by trying to get in touch with the customer. If you can resolve the problem with the customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback. You should also send evidence to the credit card company that the customer agreed to drop the charge. If the customer didn’t try to return the product or cancel the service before the chargeback was made, or if you provided the customer with a replacement product or service, send evidence of that as well.

Whether you resolve the issue with the customer or not, you should still send any relevant evidence to the credit card company. You could include some of the following pieces of evidence:

  • the date and time that you fulfilled the order
  • the billing information that the customer used
  • shipping and tracking information for the order
  • descriptions or pictures of the products from your store that prove that they were as described.
  • Credit not processed
  • The chargeback will be marked as Credit not processed if the customer informed you that the purchased product was returned or that the transaction with you was canceled, but you have not yet refunded or credited the customer.

Start by trying to get in touch with the customer. You can’t issue a refund after a chargeback has been made, but you might be able to explain the situation or figure out another way to solve the problem. If the customer asked for an inquiry, then you can issue a refund. If you can resolve the problem with the customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback or inquiry. You should also send evidence to the credit card company that the customer agreed to drop the chargeback.

If you can’t resolve the issue, and you think that the chargeback is not valid, then you should send evidence to the credit card company that you either gave the customer a refund before the chargeback or inquiry was made, or that the customer was not entitled to a refund. You could include some of the following pieces of evidence:

Your refund and return policies
an explanation of when and where the customer was shown the refund policy
any emails or notifications you sent to the customer about the refund
an explanation of why the customer was not entitled to a refund.
General
A chargeback is marked as General if it doesn’t fit into one of the other categories.

To resolve a general chargeback, you should start by trying to contact the customer so you can figure out what the problem is. If you can solve the problem for the customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback. You should also send evidence to the credit card company that the customer agreed to drop the charge.

If the customer doesn’t want to drop the chargeback, then you should send evidence to the credit card company that the charge was valid. You could include some of the following pieces of evidence:

  • details about the products that were ordered
  • the date and time that the order was fulfilled
  • the customer’s billing information
  • the customer’s IP address and country
  • emails or other communication you had with the customer
  • USPS/FedEx/UPS or other online tracking or shipping confirmations
  • proof of prior refunds or replacement shipments.

IF The cardholder disputes a charge with their bank. 20 USD in the United States or its equivalent in your local currency.This amount will be subtracted from your sellers account before the next Transfer is initiated .

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