Even though you as a merchant are probably already doing you best to prevent fraudulent and incorrect transactions, there is always a risk that a customer might want to dispute the transaction to their card issuer. If the card issuer determines that the transaction can be questioned, a complaint process is initiated through the card network, also known as a chargeback.

The chargeback aims to reimburse the cardholder if an inaccurate or fraudulent transaction is detected. A chargeback also gives you as a merchant the opportunity to investigate the transaction together your acquirer, where you afterwards either accept the chargeback or contest the case.

At Paytrim, we support our customers throughout the chargeback process by:

  • Receiving and investigating incoming chargebacks.
  • Informing you as our customer about incoming chargebacks and what it implies.
  • Explaining what type of documentation is required to dispute the complaint.
  • Administrating the chargeback process towards to card network.

How does a Chargeback work?

Below is a typical chargeback process:


A chargeback is initiated when a cardholder disputes a transaction to their card issuer. The reasons may vary; the transaction may have been carried out ona stolen card, the wrong amount may have been charged, a customer may not have received their ordered item or a customer may still be waiting for a return.


Once a card issuer has received the dispute, they first carry out an evaluation of whether the customer claim may be correct or not. They look for technical errors and if the transaction is considered correct and genuine, the issuer helps the cardholder to understand the transaction and no chargeback is proceeded.


If the card issuer does not assess the transaction as genuine, a chargeback is initiated to reimburse the cardholder for the withdrawn amount.


The case is submitted to the card network (e.g. Visa and Mastercard) to us at Paytrim and the charged amount will be automatically deducted from you as a merchant.


Paytrim will contact you as a merchant with information about the case. If you as the merchant wishes to dispute the chargeback, Paytrim will inform you which evidence-based documents is needed for your particular case.


Should the merchant choose to dispute the complaint, Paytrim returns a summary to the cardholder’s bank with supporting documents. Should the card-issuing bank agree that the evidence is sufficient, the debited amount will be refunded to you as a merchant.


If the card issuer does not consider the evidence sufficient to dismiss the dispute, they may choose not continue to request the claimed amount on behalf of the cardholder.


If the card issuing bank where to stand by its request, you as a merchant must decide whether or not to continue to contest the claim. In cases where we believe we have sufficiently strong evidence, the case may be assessed by an independent party within the card network. However, this is rare, as the process is lengthy and involves higher costs.