A chargeback is a dispute made by the cardholder (consumer) directly to the issuing bank when they do not recognize a purchase made on their card. This process is common in the payments market and aims to protect consumers against unauthorized transactions or billing errors.
How chargebacks happen
When a customer identifies a purchase they consider to be improper, they request a refund from the card-issuing bank. The bank, in turn, opens a dispute with the card brand (such as Visa, Mastercard, etc.), which triggers the acquirer — and, consequently, this notification reaches us.
As soon as we are notified, the debit is automatically made by the acquirer to our account. For this reason, we need to pass the debit on to the merchant immediately, ensuring the financial balance of the transaction.
Main causes of chargebacks
Some common reasons for opening a chargeback are:
Fraud: when the cardholder does not recognize the purchase.
Product not received: the consumer claims that they did not receive the purchased item.
Service not provided: the customer reports that they did not have access to the paid service.
Commercial disagreement: the product or service was delivered, but the customer disputes it due to a difference in quality, value, or condition.
How the chargeback reaches us
After the issuing bank opens the dispute, the process goes through the entire flow of the card brands and the acquirer until it reaches our platform. As soon as we receive the notification, we register the case and notify the merchant, requesting proof of sale documents.
Important documents for defense
The quality of the documents submitted is essential to increase the chances of a successful defense.
Check out the main types of proof accepted:
For physical (tangible) products:
Proof of delivery signed by the buyer;
Tracking code with confirmed delivery status;
Invoice or proof of transaction.
For digital or intangible services:
Proof of access or use of the service;
User login and IP logs;
Conversations, emails, or records proving use;
Cancellation policies and terms of use accepted by the customer.
Review periods
After the documents are submitted, the issuing bank conducts a review—a process that can take up to 140 calendar days.
When the case is closed:
If the decision is in favor of the consumer, the charge is upheld.
If the decision is in our favor, the amount is refunded to our account and we return the amount to the merchant.