Dispute & Chargeback
Overview
Dispute is an objection process performed by the Cardholder to the Merchant for transactions that may not be done by the Cardholder. This process can occur after a successful transaction. The dispute process occurs due to indications of Fraud, Customers reporting damaged or inappropriate goods, and others.
Meanwhile, Chargeback is some funds denied by the Customer and will return by the Merchant where the objection has been proven valid by the Bank or the Merchant has agreed to the objection from the Customer.
In this case, NICEPAY becomes an intermediary between the Bank and the Merchant to communicate during the dispute process. If the Merchant wants to reject the objection from the Customer, NICEPAY will ask the Merchant for proof of the transaction, the Merchant must also provide the required documents within a particular deadline.
The document content includes information on the name of the cardholder, details of the destination address, the details of billing statements, goods that go through the transaction process, and receipt numbers.
The dispute deadline may differ depending on the Acquiring Bank used.
Dispute Process
- The denying party submits a dispute to the Issuing Bank.
- The Issuing Bank reports the dispute to the Principal.
- The Principal reports the dispute to the Acquiring Bank.
- The Acquiring Bank asks NICEPAY for transaction evidence.
- NICEPAY receives reports from Acquiring Banks.
- NICEPAY asks the Merchant for transaction evidence.
- Merchants provide supporting documents in the form of transaction evidence to NICEPAY.
- If the dispute party still objects to the evidence provided:
- NICEPAY asks the Merchant for transaction details in addition to supporting documents.
- NICEPAY sends the evidence collected into a second presentation to Acquiring Bank.
- The Bank receives the evidence collected by NICEPAY.
- If the denying party acknowledges the transaction evidence, then the dispute process will end.
- If the Merchant acknowledges the disclaimer, the Merchant will allow the Bank to chargeback the funds to be returned to the disclaimer.
- If the Merchant still rejects the proof of transaction, it will proceed to the arbitration process.
Arbitration Process is a process carried out if the denying party and the Merchant do not reach an agreement in the dispute process. If the Merchant loses the appeal, the Merchant must refund (chargeback) and pay the associated fee.
After the arbitration proceedings end:
- If the denier loses the appeal, there will be no chargeback process.
- If the denier wins on appeal, the Merchant will chargeback and pay the associated fee.
Associated fee is a fee charged from the nominal of a transaction and must be paid by the Merchant after the arbitration process ends under certain conditions.
See also
Visit the Credit Card Transaction Settlement page to find out how to finish transaction on Credit card.
Visit Credit Card FAQ page to find out frequently asked question related to Credit Card.