A "credit card chargeback" happens when a buyer is disputing a payment to his bank in order to get a refund.
In this situation the buyer's bank launches a refund process and imposes it to Payplug. Unfortunately, we cannot go against this decision.
As for every credit card payment, your customer has the possibility to dispute a payment within a laps of time.
In France chargebacks are only allowed when credit card fraud has been commited. In other countries, it is also allowed to dispute a payment in case of litigation.
In case of a chargeback, Payplug charges management fees of 18€ with tax by transaction. This amount corresponds to the processing fees imposed by our banking partners
In France, in case of dispute, the seller must take the transaction amount refund on him (more information about anti-fraud policy). In order to protect yourself against chargeback, we invite you to read this guide and to look at our information guide against on fraud.
In any case, Payplug offers an efficient protection thanks to the 3D-secure. This option is activated by default on your account from 100€ on. You can, if you wish to, activate it from the first euro from your Payplug interface.
For more detail on 3D-Secure, you can click on this link.
How to challenge a chargeback?
This is possible to challenge a chargeback, nevertheless, the process is generally long and expensive. We advise you to contact your customer who has initiated the process in order to understand the claim cause, and in order to find a settlement with him.
In order to better understand your customers' existing recourse, we advise you to be informed on:
If you cannot reach your buyer, and you think you have been a fraud victim, you can complain about it to your Police station or to the relevant authority and give any element that will help to identify the assumed fraud.
- Name and firstname filled in
- IP address used when on your website
- Delivery proof (tracking for example)
- A copy of emails you would have had with the assumed fraud.
If the complaint succeeds, and the fraud is identified, you will be able to ask compensation for the loss suffered.
Payplug can also contest the chargeback with the customer's bank, typically within about 30 days (depending on the card type), in an attempt to recover the lost transaction amount. For this purpose, the following documents will be required:
- Proof of delivery (if available and signed)
- Proof of acceptance of your Terms and Conditions (this can be the checkbox clicked prior to payment on your website)
- Any correspondence with the customer
- Your version of the events (if possible in English).
Please note that the procedure can take several weeks and is subject to the response from the customer's bank.
What are the different chargebacks types?
- Fraud with a credit card: The buyer has used a stolen credit card, or taken one temporarily, to make a payment online. The legitimate credit card owner doesn't recognize the transaction on his account and disputed the payment.
- unrecognized transaction : The buyer has forgotten to what corresponded the transaction appearing on his bank statement a disputed it to his bank.
- Dishonest buyer: The buyer is the credit card legitimate owner, but has dishonest intentions. Thus he disputes the payment to be refunded, while taking advantage of the order. This is to be notes that abusive chargeback is considered a criminal offense, and is punished by up to a 5-year prison sentence or a 375 000€ fee in France.
- Dissatisfaction or product not received: The buyer is dissatisfied with the product or service received and is asking for a refund directly to his bank.
More information about fraud and debts.
Please find complementary information about it on our Assistance Center: