When selling online you probably already have come across situations where a buyer decided to question an already processed transaction.
Whether the buyer's reasoning is valid or not, credit card issuers and payment gateways provide them with a set of tools which allow them to appeal and review transactions.
A chargeback is one of these tools given to the buyer by their credit card issuer and is applicable only if the said credit card was used to pay for items/services in question.
This article aims to provide you more context on this tool and what to expect when one is issued.
What is a chargeback?
A chargeback (or a reversal) takes place when a buyer asks a credit card company to reverse a transaction that has already been processed.
A chargeback can be filed with the card issuer based on credit card association regulations and timeframes.
A chargeback is a process that is initiated outside of PayPal and the final decision in made by the credit card company, which means than neither PayPal or Glopal have control over it.
Chargebacks are most often issued because:
- A buyer’s credit card number is stolen and used fraudulently
- A buyer makes a purchase, but believes that the seller has not fulfilled their side of the agreement
Whether the buyer's reason for issuing the chargeback is legitimate will be determined by the credit card issuer based on evidence presented by both involved parties.
To successfully fight fraudulent claims make sure to follow the steps provided in the last section of this article.
How is a chargeback different from a PayPal dispute or claim?
This form of appealing a transaction is an instrument given to the buyer by the credit card company and, as such, is not controlled by neither PayPal or Glopal.
What happens when a chargeback is issued?
If the reversal is reviewed in your favor, PayPal will credit your account with the amount initially pulled.
What can you do in order to increase the chance of winning a chargeback dispute?
- Proof of delivery, e.g. online tracking numbers
Glopal provides both you and the buyer with a tracking number and link to the tracking site for each Parcel Forwarding shipment
- Copies of the original item description, photos
- Proof that the buyer was already refunded (if applicable), received a replacement product or was compensated in any other way (if applicable)
- Correspondence with the buyer or feedback from the buyer
- Any agreements signed or accepted by the buyer at time of purchase
- Any return policy or applicable terms and conditions which were communicated to the buyer