A chargeback is a full reversal of a transaction by the card issuer. A chargeback is generated when a cardholder disputes a transaction on their credit card statement.
A retrieval request, also known as a "Copy request" or a "Request For Information" (RFI) is a request from the cardholder's issuing bank for copies of a signed sales receipt or other suitable documentation to prove the validity of a transaction. This is normally requested when the cardholder does not recognise a specific transaction on their card statement, or if cardholder's issuing bank has detected the transaction as potentially fraudulent.
Visa & Mastercard impose strict chargeback thresholds beyond which substantial fines can be applied and merchant facilities terminated.
It is, therefore, important to keep chargebacks to a minimum. Paydoo monitors chargeback levels and will alert you when corrective action is required. We will always work with you to help you reduce this risk, by offering guidance and advice on avoiding chargebacks and fighting fraud.
The time scales vary for each chargeback reason and card scheme. A chargeback may be raised several months after the original transaction. The first chargeback time limit is generally calculated from one of two dates:
- The date the transaction is processed by the card scheme, or;
- The date of expected receipt of services (e.g., for travel services, the expected date of travel).
The first chargeback time limit begins on the calendar day following these dates, and the issuing bank has typically up to 180 days from this day to raise the chargeback. However, chargebacks and retrieval requests can occur at various time scales depending on the reason for the dispute as well as the financial offers surrounding the transactions.