What is Chargeback process?

Chargeback is a process where cardholders dispute a transaction with their issuer bank for funds to be refunded to them. The issuer bank coordinates with the merchant bank for the evidence until the process under the verification provisional credit made to the customer account. Once the verification is done, if the case is in the customer’s favor, the amount credited to the cardholder account and vice versa.

What is Issuer Bank?

Issuer bank is also called Issuer, An issuing bank is the bank that issued the debit or credit card to the customer. In simple worlds, the issuing bank is the cardholder or customer’s bank.

What is Provisional Credit?

Provisional credit is a temporary credit that bank issues to the customer account while the transaction is either being disputed.

What is Merchant bank?

Merchant bank is a bank that provides financial services to medium to small- sized business.

Steps of chargeback:-

There are basically 8 steps of chargeback:

Step:1 Initiate chargeback by Customer

Step:2 The provisional refund

Step:3 Examining the reason code

Step:4 The option to represent

Step: 5 Compile your documents

Step:6 Submit the representment packet

Step:7 Bank reviews and decisioning

Step:8 Arbitration