Credit Chargebacks

When your customer disputes a credit card transaction, PayCredit applies the relevant financial adjustments to their credit account.

PayCredit does not investigate disputes, collect evidence or determine their outcome. These activities are managed separately, either through Paymentology Disputes & Chargebacks or through your own or a third-party dispute management system.

PayCredit uses the dispute information and final outcome to adjust the customer's credit account based on the programme configuration and the transaction's credit lifecycle stage.

How chargeback processing works

The chargeback ecosystem brings together scheme processing, dispute management and credit account financial processing.

Follow a chargeback from start to finish

Consider a customer who disputes a settled credit card purchase of £100.

The following flow shows how the dispute moves from the operational process to the financial adjustments in PayCredit.

1. The customer raises a dispute.

   The dispute is managed by Paymentology Disputes & Chargebacks, your team or your third-party provider, depending on your operating model.

2. Dispute information reaches PayCredit.

   For Mastercard, supported FAST 1442 processing receives the chargeback information, matches the original transaction and automatically creates the dispute in PayCredit.

   For Visa, dispute information is provided through Paymentology Operations or the supported client integration, depending on the operating model.

3. PayCredit applies the initial financial treatment.

   PayCredit evaluates the transaction's lifecycle stage and the programme's Direct Chargeback Credit setting.

   Eligible settled disputes may receive provisional financial relief while the dispute remains open.

4. The operational dispute is resolved.

   The dispute outcome is determined through the relevant operational dispute process and recorded in PayCredit.

   The outcome may be a customer win, merchant win or partial win.

5. PayCredit applies the final financial treatment.

   PayCredit calculates and posts the applicable credit account and ledger adjustments based on the final outcome, programme configuration and transaction lifecycle stage.

Choose how operational disputes are managed

You can use Paymentology Disputes & Chargebacks or manage disputes through your own or a third-party system.

The choice determines who manages the operational dispute and who provides the final outcome to PayCredit.

In all three models, PayCredit applies the relevant financial calculations and credit ledger adjustments, automatically

What does PayCredit handle automatically?

Once PayCredit receives the required dispute information, it applies the relevant financial treatment according to the programme configuration and transaction lifecycle stage.

This can include:

• Applying provisional credit to eligible settled disputes when enabled.
• Adjusting disputed principal and available credit.
• Calculating applicable interest and eligible fee adjustments.
• Updating applicable statement balances and payment obligations.
• Applying the relevant delinquency treatment.
• Calculating and posting final financial adjustments after dispute resolution.

The exact financial treatment depends on whether the transaction has settled, been billed or already been paid, and whether the dispute is upheld, rejected or partially upheld.

Get started

Follow these guides to complete your chargeback implementation.

Start with Set Up Chargeback Processing with PayCredit to identify the configuration and integration activities required for your programme.