Chargeback APIs process

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Important

• Clients need to opt-in for the TQR4 report from Mastercard if they wish to receive chargeback reports.
• Paymentology has built our own Chargeback report which is based on the information in the TQR4. More info on the report here.

Raising chargebacks via API

To initiate a chargeback, the following steps are required. This process represents the positive flow, where a transaction has been completed and the first presentment has been received. However, the cardholder wishes to dispute the transaction.

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Dependency on API results:

Some APIs require input parameters derived from the results of previous API calls. This means that the output of one API becomes the input for another, ensuring the necessary information is provided for each step.

Step 1: Create a claim

Use the Transaction Search API to search for information about the original transaction. You may use this information to take an action on the original transaction, such as creating a claim. 

Once you have this information, use the Create Claim API to create a new claim.

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Important

• You must have a first presentment to create a claim.
• A claim is required before creating a retrieval request or a first chargeback.
• You cannot create claims on first presentments that acquirers have reversed.

To retrieve the details of an existing claim, or any cases in which the claim is associated, use the Claim Detail API.

Step 2: Create first chargeback

Once you have a claimID as a result from raising the claim in Step 1, use the Request Chargeback API to raise the chargeback request.

If the request is successful, the chargeBackId is returned.

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Collaboration

An attempt to engage the merchant to resolve the dispute. The Collaboration process is part of the process of creating a first chargeback.

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Tips

• You can add supporting documentation in this step as the Request Chargeback API allows for it.
• In case the Chargeback Reason Code is related to Fraud, we need to call additional APIs to register a fraud case.
• You can use the CB image status API to retrieve details and status of an existing chargeback.

Step 3: Second presentment

The merchant can dispute the chargeback by re-presenting the charge to the bank. For the bank to accept the re-presentment and reverse the chargeback, the merchant must submit evidence that proves the chargeback is not valid.

Presentments are received as settlements. Paymentology interprets the settlement files from the Payment Scheme Network and creates the settlement FAST which is pushed to the client.

The normal Presentments report indicates the chargeback details. DE24_Function_Code indicates the second presentment in the clearing file. More info on the Presentments report available here.

Step 4: Pre-arbitration and pre-compliance case filing

If you do not find the merchant's evidence satisfactory to reverse the chargeback, you can take the case to pre-arbitration.

The merchant can either accept they lost the dispute or decline the pre-arbitration, in which case the you have the option to either reverse the chargeback or go to arbitration.

A pre-arbitration case is filed on the back of a second presentment. A pre-compliance case can be filed any time.

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Dependency

The dependency is that the first chargeback is rejected by the acquirer (merchant), a second presentment is received and the cardholder would like to continue the dispute.

Use the Load Data For CB API to proceed with this step. You will require the claimId.

Step 5: Arbitration and compliance filing

If a case reaches arbitration, the Payment Scheme Network steps in to take the final decision on the dispute.

As the losing party is charged fees by the Payment Scheme Network, the merchant may concede the case at any time before the Payment Scheme Network issues its decision, in which case the fees might be reduced.

You can use the CB Image Status API to retrieve the details and status of the case.

Managing chargebacks via API

Canceling a chargeback

Use the Cancel Chargeback API if there is an issue in the raised chargeback, and a cancellation is needed. This will cancel the chargeback request.

Checking chargeback status

Use the CB Image Status API to retrieve details and status on an existing chargeback.

Checking claim details

Use the Claim Detail API to retrieve the details of an existing claim.

Registering fraud

If the reasonCode of the raised chargeback is fraud; an API call of report fraud is required.

This is only applicable when the reasonCode is one of the following:

Follow the same steps as creating a claim by using the Claim ID.