Definition: Chargeback is a dispute against a particular transaction raised by the cardholder (end-user) and reported to their card issuing bank. A Chargeback is a provision by banks and card networks such as Visa & MasterCard to protect buyers from unauthorized or fraudulent payments. Once the cardholder files a complaint, the bank reports the same to Cashlesso and an investigative procedure is initiated.
There could be several reasons of Chargeback against a particular transaction, but most commonly is associated with unsatisfactory customer service/product or poor service delivery experience. Chargebacks can also be filed if the customer suspects fraudulent activity on their card.
For Merchants’ it is best to avoid any kind of Chargebacks in high volumes as banks and card networks may label your business as a fraudulent/high risk business, hampering their image and present agreement rates. A customer has a timeframe of 180 days to file a Chargeback, which means their sales are reversible for that time period. Furthermore, a high number of Chargebacks may lead to the Banks holding other remittances for the business as well and even a ban of online payment services may be imposed upon the business.
As per our policy, the Merchant’s explicitly agrees that all payments made in respect of any Customer Order, in respect of which the Customer or Issuing Bank raises a claim, demand, dispute or Chargeback on Cashlesso or the Facility Providers for any reason whatsoever or in case of refund initiated by the Merchant shall be the financial responsibility of the Merchant. The Chargeback or refund shall be processed as per the set processes of Facility Providers and Cashlesso as denoted:
Issue Raised: Once an Issue/Dispute is raised by the customer and Cashlesso is intimated of the same via the facility provider, we shall notify our Merchant via e-mail, Cashlesso’s merchant panel/telephone about the issue/dispute with the relevant details as provided by the bank regarding the transaction.
Assess the Chargeback: Merchant’s would then be required to assess the dispute and provide a detailed explanation regarding the product/service delivery. If in case the product/service has NOT been provided, the Merchant would be responsible to review the situation and determine if the customer is still willing to accept the product/service delivery. If in case the product/service has been delivered, then the Merchants shall be responsible to share ‘Proof of Delivery’, Invoices and other legally acceptable proofs of product/service delivery via email, cashlesso’s merchant panel.
Rendering Proofs: Once the issue/dispute has been assessed by the Merchant, it is the sole responsibility of the Merchant to timely render all documents regarding the transactions in order to contest the Dispute as Facility Providers generally provide a window of 5 working days to represent the Chargeback. Failure to do so within the specified time frame may result in the Merchant losing the Chargeback
Once the Chargeback is received and the Merchant is ordered to make payment of the Chargeback amount or in case of Refund once the Refund requested is initiated by the Merchant, the Merchant is required to make the payment of the Chargeback/ Refund amount as the case may be without any demur or protest, dispute or delay.
The Merchant shall make the payment of Chargeback amount within 48 hours from the time of receiving the request for making payment of Chargeback and or in case of Refund immediately at time of initiating the refund. The Merchant explicitly agrees that all Refunds and Chargebacks shall be the sole responsibility of the Merchant and Cashlesso shall not be liable for any claims or disputes which may arise in connection with such Refunds or Chargebacks to the Merchant or its Merchants.
Cashlesso shall have the absolute right to withhold the payment in case of anticipated Chargebacks or excessive chargebacks raised against Merchant. The Merchant futher agrees to indemnify Cashlesso in respect of any claims, disputes, penalties, cost and expenses arising directly or indirectly in relation Refunds or Chargebacks for all transaction initiated and instructed through the Merchant’s Site.
If Cashlesso and/or the Facility Providers determine that the Merchant and/or its business associates registered with Cashlesso are incurring an excessive amount of Chargebacks or Refunds, Cashlesso may establish controls or conditions governing the Transactions contemplated under this Terms and Conditions, including without limitation, by
establishing new processing fees or additional costs,
by requesting a fixed reserve in an amount reasonably determined by Cashlesso to cover anticipated Chargebacks and Refunds
delaying or suspending pay-outs to Merchant,
refuse to process any transactions
adjusting the Chargeback and Refund amount from the Customer Charge payable to Merchant
imposing penalty amount if any charged by Facility Providers
charge interest over the Chargeback and Refund amount
terminating or suspending Cashlesso Services.
The Merchant explicitly authorizes Cashlesso to debit the Merchant’s current balance amounts with Cashlesso to the extent of the aforesaid Chargeback and Refund and any other moneys due to Cashlesso by the Merchant. If there is insufficient funds available therein; the Merchant shall within 48 (forty eight) hours on receipt of the e-mail from Cashlesso regarding the claim undertakes forthwith without any demur, protest, dispute or delay, to pay to Cashlesso, the amount of the Chargeback/dispute/Refund to the extent to which such funds proves inadequate.
Without prejudice to any other of Cashlesso’s rights and remedies, in the event that the Merchant does not make any payment to Cashlesso by its due time (within 48 hours) or on demand as required, Cashlesso shall be entitled to charge interest on such overdue amount upon completion of the said 48 (Forty Eight) hours (as the case may be) until the date of payment in full, at the rate of 3-6 % per month, solely as per Cashlesso’s discretion and the Merchant cannot not dispute this.
It is agreed that any claim or dispute arising out of non-payment of Refund / insufficient balance shall be the absolute liability of the Merchant and further the Merchant explicitly indemnifies Cashlesso and the Facility Providers against any claims, dispute initiated by any Customers / Facility Provider or any third party / authority enforced on Cashlesso, Acquiring Banks/ Card Schemes/etc. for the non-refund of such transactions.
The Merchant explicitly agrees that the refunds initiated by Merchant shall be routed to the original method of payment unless specifically agreed between the Merchant and Customer to credit through an alternate mode. The Merchant hereby confirms that Cashlesso has no responsibility if Refunds are processed through alternate mode agreed between Merchant and Customer, however, the Merchant is required to provide a payment settlement proof with the Customer to Cashlesso if in case the payment settlement is rendered through a different mode.
The Merchant agrees that TDR charged by Cashlesso shall not be refunded by Cashlesso irrespective of any Chargeback or Transaction being disputed, rejected or refunded.