Disputes and fraud Policy

1. Dispute

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 favor, the disputed amount is returned back to you. If a dispute is upheld, the card issuer’s decision is final and the cardholder’s payment remains refunded.

Please note that the full lifecycle of a dispute, from initiation to the final decision from the bank, can take as long as 2-3 months to complete.

• Physical products are tangible goods that were either purchased in a store or shipped to the recipient, so evidence often proves the customer is in possession of the item.
• Digital products or services are often virtual in nature and don’t have trackable shipping data, so focus on evidence of usage, login, or download.
• Offline services include purchases that are made in advance, such as event tickets and reservations, where evidence of a cancellation policy can be material.

2. How disputes work

After you receive a dispute you have one decision to make: will you challenge the dispute or not.

you choose to challenge it, you will need to provide a response -- your evidence -- to the issuer of the card.

The evidence you provide the issuer at this step of the process is the only communication between you and the issuer. There are no other opportunities to communicate during this process. Based on the evidence you give, the issuer will make a single, final decision about whether the dispute is won or lost.

If you choose not to challenge it, you can either ignore the dispute and do nothing or explicitly accept the dispute.

3. Submitting evidence

EVIDENCE YOU CAN SUBMIT FOR PHYSICAL PRODUCT

When submitting evidence for a physical product, it's essential to provide documentation that supports your claim, verifies the transaction, and demonstrates the condition and delivery of the item. Here are some examples of evidence you can submit:

1. Proof of purchase: Receipts, order confirmations, or invoices showing the purchase of the product. This can include screenshots or PDF copies of the transaction details.
2. Shipping documentation: Provide shipping labels, tracking numbers, or delivery confirmation from the shipping carrier. This helps establish that the product was shipped and delivered.
3. Product photos: Take clear, detailed photos of the item, including any relevant packaging or labeling. These images can be used to demonstrate the condition of the product when it was received or returned.
4. Packaging materials: If applicable, include photos or descriptions of the packaging materials used, such as boxes, bubble wrap, or protective inserts. This can help support claims regarding inadequate packaging that led to damage.
5. Communication records: Provide copies of any relevant emails, messages, or correspondence between you and the customer, especially those related to the product, shipping, or any issues raised.
6. Warranty or guarantee documentation: If the product came with a warranty or guarantee, include copies of those documents to support your case.
7. Expert opinions or evaluations: In some cases, obtaining an expert opinion or evaluation of the product can strengthen your evidence. This could include assessments from repair technicians, appraisers, or other qualified professionals.

Remember, it's crucial to ensure that all evidence provided is accurate, complete, and relevant to the dispute or claim at hand. If you have any doubts or specific requirements for evidence submission, consult the platform or service through which the transaction took place for guidance.

EVIDENCE YOU CAN SUBMIT FOR DIGITAL PRODUCTS OR SERVICES

When submitting evidence for digital products or services, it's important to provide documentation that supports your claim, verifies the transaction, and demonstrates the nature of the digital product or service. Here are some examples of evidence you can submit:

1. Order confirmation: Provide a copy of the order confirmation or receipt showing the details of the transaction, including the product or service purchased, the date of purchase, and any associated fees.
2. License or access key: If applicable, provide the license or access key associated with the digital product or service. This can help establish ownership and usage rights.
3. Screenshots or recordings: Take screenshots or recordings of relevant interactions, such as error messages, proof of delivery, or any issues encountered with the digital product or service.
4. Communication records: Include copies of any relevant emails, messages, or correspondence between you and the customer, especially those related to the digital product or service, delivery, or any issues raised.
5. User agreements or terms of service: If you have a user agreement or terms of service in place, provide a copy of these documents to support your case.
6. Documentation of access or usage: If possible, gather evidence of the customer's access or usage of the digital product or service. This can include login records, timestamps, or activity logs.
7. Expert opinions or evaluations: In some cases, obtaining an expert opinion or evaluation of the digital product or service can strengthen your evidence. This could include assessments from technical experts or industry professionals.

Ensure that the evidence you provide is accurate, complete, and relevant to the dispute or claim at hand.

EVIDENCE YOU CAN SUBMIT FOR DIGITAL PRODUCTS OR SERVICES

When submitting evidence for offline services, it's important to provide documentation that supports your claim, verifies the transaction, and demonstrates the nature and completion of the services provided. Here are some examples of evidence you can submit:

1. Service agreement or contract: If you have a written agreement or contract in place with the customer, provide a copy of the document that outlines the scope of services, terms, and conditions.
2. Invoices or receipts: Include copies of invoices or receipts that indicate the services rendered, the dates of service, and any associated fees or payments.
3. Time and attendance records: If applicable, provide time and attendance records that demonstrate the dates and duration of the service provided. This can include sign-in sheets, time logs, or any other documentation that verifies the presence and working hours.
4. Work progress documentation: If there are milestones or specific deliverables associated with the service, provide documentation or reports that show the progress made, such as work-in-progress photos, project updates, or status reports.
5. Communication records: Include copies of any relevant emails, messages, or correspondence between you and the customer, especially those related to the services rendered, changes, or any issues raised.
6. Testimonials or reviews: If you have received positive testimonials or reviews from previous clients or customers, gather and submit them as evidence of your quality of service and customer satisfaction.
7. Expert opinions or evaluations: In some cases, obtaining an expert opinion or evaluation of the services provided can strengthen your evidence. This could include assessments or reports from industry professionals, consultants, or other qualified individuals.

Ensure that the evidence you provide is accurate, complete, and relevant to the dispute or claim at hand.

FAQs

1. What are dispute fees?

When your business receives a card dispute (also called a chargeback), the cardholder's card issuer pulls the amount for the dispute from PayCEC, as well as that network's dispute fees. We pass these on to you, the merchant, and debit your PayCEC balance for the dispute amount plus network dispute fee. This will appear in your balance history as a single balance transaction for the dispute amount and fee.

2. Can I refund a charge to avoid paying the dispute fee?

If you issue a full refund on a charge before a dispute happens, it is no longer possible for the cardholder to dispute it. So you are protected from any future dispute or dispute fee. Once a cardholder initiates a dispute, it is no longer possible to avoid the fee.

3. How much do disputes cost?

All disputed payments (also known as chargebacks) incur a fee of $35.00 / dispute transaction regardless of the outcome of the dispute.