Chargeback process and dispute handling

A chargeback occurs when a buyer (the cardholder) disputes a completed credit card transaction and requests their issuing bank to reverse the payment. If approved, the disputed amount is withdrawn from your account. Chargebacks typically relate to concerns about transaction authenticity, product quality, or the customer’s experience.

Understand the chargeback process

Here’s how a typical chargeback process works:

1. Customer initiates a dispute
   The cardholder contacts their issuing bank to report a problem with a credit card transaction.
2. Merchant receives a chargeback notification
   The issuing bank submits the chargeback through the credit card network. Genstore Payment is then notified and may request supporting documents from the merchant. You will see the chargeback notice in your Genstore admin dashboard and must respond within the specified time.
3. Funds are temporarily deducted
   Genstore Payment immediately deducts the disputed amount and any associated fees from your account balance or pending payouts.
4. Merchant responds
   You can either accept the chargeback or submit evidence to dispute it before the deadline.
5. Card network reviews the evidence
   The card network or issuing bank will review your submission. This process can take up to 75 days.
6. Final decision is made
   • If the merchant wins the case, the disputed amount (minus processing fees) will be returned to your account.
   • If the buyer wins, the funds remain with the buyer.

Chargeback policies may vary depending on the card network (e.g., Visa, Mastercard) and the countries or regions involved in the transaction.

TIP

In certain cases, such as when the transaction has already been refunded, Genstore Payment will automatically dispute the chargeback on your behalf.

Review dispute cases in your dashboard

To view and manage disputes, go to Finance -> Payments -> All in your Genstore admin dashboard, then open the Disputes tab.

There are three types of dispute notifications:

1. Notification of chargeback
   The buyer questions the transaction—such as claiming they didn’t receive the product, the charge is incorrect, or the transaction is fraudulent. After initial review, the issuing bank sends a chargeback notice to the merchant, requiring action.
2. Request of Information
   When the issuing bank needs clarification or additional transaction details, they will send an information request. The merchant is expected to submit supporting documentation.
3. Notification of fraud
   If the cardholder reports suspected fraud (e.g., stolen card, unauthorized use), the issuing bank sends a fraud notice to the merchant and requests relevant transaction records.

Fields in the dispute table

Field	Description
Payment reference number	Unique ID for the original transaction
Dispute reference number	Unique ID for the dispute
Reason code	Code provided by the card network explaining the reason for the chargeback
Payment date	Date the original transaction was completed
Dispute date	Date Genstore Payment received the dispute notice
Chargeback amount	Amount being disputed
Payment method	Payment method used in the original transaction
Status	Dispute status: - open (dispute can be challenged) - closed (resolved or cannot be challenged)
Dispute ends at	Last day to submit evidence; “–” means the dispute cannot be challenged
Latest event	Most recent update in the chargeback case
Action column	- Respond: available for open disputes - View: for closed or resolved disputes - Reply: shown for ROI cases

Decide whether to accept or dispute a chargeback

For chargebacks that are eligible for dispute, you can choose between:

• Accepting the chargeback
  Agree to the chargeback result and allow the funds to be refunded to the buyer.
• Disputing the chargeback
  Submit evidence within the specified timeframe (usually 14–40 days) to contest the chargeback. Note: The dispute process can take time and may incur additional fees.

TIP

We recommend disputing only if you have clear, verifiable evidence and the disputed amount is significant.

If you choose to dispute a chargeback, gather as much relevant documentation as possible. Examples include:

• Order history and prior transactions with the buyer
• Proof of delivery (e.g., shipping or tracking information)
• Communication records (e.g., emails or chat logs with the buyer)