Set Up Chargeback Processing

PayCredit Chargeback processing differs between Mastercard and Visa in how disputes are created, but both schemes follow the same approach for recording final outcomes.

Dispute creation: Paymentology automatically ingests Mastercard chargeback data through FAST 1442, while Visa chargeback information is provided to PayCredit through the supported API integration.
Final dispute outcome: For both Mastercard and Visa, the final dispute outcome must be recorded in PayCredit through the supported API .

PayCredit then applies the relevant financial adjustments to the customer's credit account.

To set up chargeback processing for your programme:

Configure whether customers receive provisional credit while a dispute is open.
Complete the dispute integration activities required by your operating model and card scheme.
Connect the final dispute outcome to PayCredit.

1. Configure provisional credit

Based on your regional regulatory and compliance requirements, as well as your chargeback operating model, decide whether eligible settled disputes should receive provisional financial relief while the dispute remains open.

Contact your implementation manager to confirm and configure the required setting.

Setting	PayCredit behaviour	Customer experience
Y: Enabled	Eligible settled disputes receive provisional credit. Applicable interest and delinquency treatment are adjusted while the dispute is open.	The customer receive financial relief before the dispute is resolved.
N: Disabled	No provisional credit is applied while the dispute is open. Financial adjustment waits for the final outcome, and interest continues according to programme rules.	The customer does not receive provisional financial relief from the chargeback while it remains open.

Example: A £100 settled transaction is disputed

With Y, an eligible £100 dispute receives provisional financial relief while the dispute remains open.
With N, the dispute is recorded without provisional credit. Financial adjustment waits until the final outcome.

The setting does not determine whether the customer wins the dispute. It determines whether provisional financial relief is provided before resolution.

2. Complete the integration for your dispute management model

Your integration requirements depend on whether Paymentology manages operational disputes or you use your own or a third-party dispute management system.

If Paymentology manages your disputes

Paymentology Disputes & Chargebacks manages the operational dispute process.

Mastercard: Supported FAST 1442 processing automatically creates the dispute in PayCredit.
Visa: Paymentology Operations creates the dispute in PayCredit.
Final outcome: Paymentology Operations records the outcome through the supported operating process.
Financial treatment: PayCredit calculates and applies the relevant credit account adjustments.

What you need to do: Confirm your programme configuration and agree the operational arrangements with your implementation manager.

You do not need to build the client-managed Create Dispute or Update Dispute Status integrations for this documented operating model.

If you or a third party manage your disputes

Your dispute management system handles the operational case. The integration requirements depend on the card scheme.

Scheme	What Paymentology already handles	What your integration needs to do
Mastercard	Supported FAST 1442 intake, transaction matching and automatic dispute creation in PayCredit.	Ensure the final dispute outcome is provided through the supported operating process.
Visa	PayCredit applies the financial treatment once the required dispute information is received.	Provide dispute creation information and the final outcome through the supported APIs.

You do not need to implement PayCredit's financial calculations in your own system.

3. Connect your dispute management system

For client-managed processing, use the supported Banking.Live dispute APIs.

The links below provide the technical reference, including endpoint details and request and response specifications.

Create a dispute

For client-managed Visa processing, your system provides the required dispute information to PayCredit.

Identify the original transaction in your system.
Prepare the dispute information required by the supported interface.
Submit the dispute using the Create Dispute API.
Check the API response to determine whether the request succeeded.

Mastercard: Do not create a duplicate dispute when the supported FAST 1442 flow has already created it.

Retrieve dispute information

Your system can retrieve existing dispute information using the appropriate API.

What you need to retrieve	API reference
A specific dispute	Get Dispute by ID
Disputes associated with an account	Get Disputes by Account ID
Disputes associated with an original transaction	Get Disputes by Transaction Reference
Chargeback transactions associated with a dispute	Get Chargeback Transactions by Dispute ID

Use the retrieval API appropriate to your integration. These are supporting capabilities and are not all mandatory steps in every implementation.

Record the final dispute outcome

Once the operational dispute is resolved, the final outcome must be recorded in PayCredit.

For client-managed processing:

Identify the existing dispute.
Obtain the final outcome from your dispute management system.
Provide the outcome and applicable upheld or rejected amounts using the Update Dispute Status API.
Check the API response to confirm whether the update succeeded.

The three final financial outcomes are:

Outcome	Status	Meaning
Customer win	A	The dispute is resolved in the customer's favour.
Merchant win	R	The dispute is resolved in the merchant's favour.
Partial win	S	Part of the disputed amount is upheld and the remainder is rejected.

For a partial win, the upheld amount plus the rejected amount must equal the total disputed amount.

Mastercard: The final outcome is not derived from the clearing file. It must be recorded through the supported operating process.

PayCredit uses the final outcome to calculate and post the applicable financial adjustments.

What happens next?

Once the required dispute information reaches PayCredit, it applies the financial treatment according to the programme configuration and the transaction's credit lifecycle stage.

Continue to Understand How Chargebacks Affect Credit Accounts to learn how settlement, statement posting, payment status, provisional credit and final dispute outcomes affect the customer's financial position.