Disputes

Explanation

A dispute (also known as a chargeback) occurs when a cardholder questions your payment with their card issuer. The card issuer creates a formal dispute which immediately reverses the payment. The payment amount, along with a separate dispute fee levied by the card network, is deducted from your account balance.
There is a dispute resolution process through which you can respond and submit evidence to make your case that the payment was valid. If the dispute is found in your favour, the disputed amount and fee is returned to you. If a dispute is upheld, the card issuer’s decision is final and the cardholder’s payment remains refunded.

Dispute Process

When a dispute is opened by a customer with their bank, the following events occur (in order):
  1. 1.
    The customer’s bank notifies Payrexx of the dispute.
  2. 2.
    The bank automatically deducts the disputed amount and a dispute processing fee from Payrexx.
  3. 3.
    Payrexx pauses the payouts and removes the funds from the merchant’s Payrexx account balance to cover the dispute deduction.
  4. 4.
    Payrexx notifies the account owner of the dispute, passing along all information received from the bank related to the dispute via the Dashboard and over email.
Once the dispute is opened and the funds have been deducted, the merchant has the opportunity to submit evidence in order to prove the charge was legitimate and potentially overturn the dispute.

Submitting Evidence

If you believe the dispute is in error and want to challenge it, you can upload evidence supporting why the payment was valid using our Dispute Form. When you formally submit evidence, Payrexx will immediately send the evidence to the cardholder’s bank for review.

Some things to keep in mind about submitting dispute evidence:

  • Banks only review evidence once, so evidence can only be submitted once.
  • The bank will make a decision somewhere between 60-75 days after the evidence due date. The decision is the bank’s alone and the outcome is final.
  • If the dispute is decided in your favour, the funds will be returned to your Payrexx balance, including the dispute fee.

Payments of a fraudulent nature

If you suspect that a settlement payment is of a fraudulent nature, chances are slim that the cardholder's bank will rule in your favor. In such cases, it would be advantageous to accept the discrepancy. From the credit card groups, you as a business will be liable for accepting fraudulent payments. However, if you think that the discrepancy comes from the cardholder, you have the opportunity to present evidence to challenge this.

Further Information

The dispute process is highly formalized and rigid, so banks will not communicate about a dispute in any manner beyond the evidence submission process. The only way to resolve a dispute is to submit evidence showing the charge was legitimate or working with the customer to withdraw the dispute.
We will inform you by e-mail about everything necessary. If you have any questions about the dispute process, feel free to contact us any time.