Payment
Credit Card

Dispute & Chargeback

6min

Overview



Dispute is an objection

 performed by
 Cardholder to

 for transactions that may not be done by
 Cardholder. This
 can occur after a successful
. The dispute
 occurs due to indications of Fraud, Customers reporting damaged or inappropriate goods, and others.

Meanwhile, Chargeback is some funds denied by


 and will return by

 where
 objection has been proven valid by

 or

 has agreed to
 objection from

.

In this case,

 becomes an intermediary between

 and

 to communicate during
 dispute
. If

 wants to reject
 objection from

,
 will ask

 for proof of

,

 must also provide
 required documents within a particular deadline.

The document content includes

 on
 name of
 cardholder, details of the destination address,
 details of billing statements, goods that go through


, and receipt numbers. 

The dispute deadline may differ depending on

 Acquiring
 used.



Dispute Process


Dispute Process
Dispute Process

  1. The denying party submits a dispute to
         Issuing
        .
  2. The Issuing
         reports
         dispute to
         Principal.
  3. The Principal reports
         dispute to
         Acquiring
        .
  4. The Acquiring
         asks
         for
         evidence.
  5. 
         receives reports from Acquiring Banks. 
  6. 
         asks
    
         for
         evidence.
  7. Merchants provide supporting documents in
         form of
         evidence to
        .
  8. If
         dispute party still objects to
         evidence provided:
    1. 
             asks
      
             for
             details in addition to supporting documents.
    2. 
             sends
             evidence collected into a second presentation to Acquiring
            .
    3. The
             receives
             evidence collected by
            .
      • If
                 denying party acknowledges
        
                 evidence, then
                 dispute
                 will end.
      • If
        
                 acknowledges
                 disclaimer,
        
                 will allow
        
                 to chargeback
                 funds to be returned to
                 disclaimer.
      • If
        
                 still rejects
                 proof of
                , it will
                 to the arbitration
                .

Arbitration Process is a

 carried out if
 denying party and

 do not reach an agreement in
 dispute
. If

 loses
 appeal,

 must refund (chargeback) and pay
 associated fee. 

After

 arbitration proceedings end:

  • If
         denier loses
         appeal, there will be no chargeback
        .
  • If
         denier wins on appeal,
    
         will chargeback and pay
         associated fee.

Associated fee is a fee charged from

 nominal of a
 and must be paid by

 after
 arbitration
 ends under certain conditions.







See also




 Credit Card Transaction Settlement
 to find out how to finish transaction on Credit card.



 Credit Card FAQ
 to find out frequently asked question related to
.



Updated 12 Mar 2024
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