Processing of chargeback funds

Credits to card

First chargeback accepted by merchant:

In cases where the merchant accepts the initial chargeback, indicating agreement with the cardholder's dispute, funds are credited back to the card.

This resolution concludes the dispute and aims to restore the cardholder's financial standing.

Pre-arbitration approval/auto acceptance:

Pre-arbitration refers to a stage before formal arbitration, and if it is approved or automatically accepted, resulting in a favorable decision for the cardholder, credits are initiated.

This step acknowledges the resolution in favor of the cardholder and ensures timely financial adjustments.

Arbitration approval:

In instances where the chargeback dispute proceeds to arbitration and is ultimately approved, signaling a resolution in favor of the cardholder, credits are processed.

This ensures that the cardholder is compensated for any valid dispute, contributing to a fair and transparent chargeback resolution process.

Debits to card

Second presentment:

If, after the initial chargeback, a second presentment occurs and results in a subsequent chargeback, signifying a reversal of the previously credited funds, a debit is applied to the card account.

This debit corrects the financial adjustments made earlier and aligns with the updated outcome of the dispute.

Processing of funds process

When Banking.live chargeback APIs have been used

When settling chargeback funds, there is a settlement file from the card scheme that Banking.Live parses to you.

The approved amount then needs to be credited to the cardholder. This is managed through FAST notifications.

The Scheme reconciliation reports generated need to be parsed for reconciliation process and to obtain itemized transaction level details of the refund. Based on this parsing, the financial adjustments will be made.

The chargeback transaction can be identified by matching the “Claim ID” from the file with the “Claim ID” for the claim raised with API call.

In case a chargeback is successful, the message will contain Success. In this scenario, the following steps apply:

• The transaction status is updated to “Approved” (Paymentology)
• For Remote Store of Value clients: A FAST notification message containing the credit amount is sent to you (sample below).
• For Local Store of Value clients: The card is credited.

{
    "MESSAGE_TYPE": {
        "Message_Type": "1240",
        "Message_Desc": "Presentment"
    },
    "SUMMARY": {
        "TID": "1234567890123454321",
        "RID": "54321012342",
        "ADD_REF_RID": "712312",
        "PID": "5",
        "ClientID": "123456",
        "Network": "MC",
        "Transaction_Date_Time": "2023-04-20 04:13:00",
        "Spend_Type": "ECOM - Purchase",
        "Spend_Location": "TAXIF",
        "Transaction_Amount": "29.01",
        "Transaction_Currency": "USD",
        "Billing_Amount": "20.593",
        "Billing_Currency": "JOD",
        "Total_Fee_Bill": "0.82370994",
        "Card_Use_Type": "Electronic commerce",
        "Customer_Validation": "PAN",
        "Processor_Decision_Code": "00",
        "Processor_Reason_Code": "000",
        "Processor_Decision_Desc": "Approve",
        "Merchant_Category": "5734 - Computer Software Stores",
        "Account_ID": "234567891",
        "Customer_AC": "0540876543217519001",
        "File_Date": "230515",
        "Cycle_Info": "01101"
    },
    "ISO_MSG": {
        "2": "765432123",
        "3": "000000",
        "4": "000000002901",
        "5": "000000002901",
        "6": "000000020593",
        "9": "61000000",
        "10": "77098586",
        "12": "230420041300",
        "22": "091650S00110",
        "24": "205",
        "25": "2700",
        "26": "5734",
        "30": "000000002300000000000000",
        "31": "85383903110000005010061",
        "33": "018505",
        "38": "107841",
        "41": "V7WEHJAT",
        "42": "H9BHF6AI66DTKI0",
        "43": "TAXIF\\30 Stanford Hill\\LOUGHBOROUGH\\LE11 1LX  LNDGBR",
        "48": "0002003MDS0003003MDU001500723051400023003CT60052003210014603600290184000000000003384000000000003301480208402826284028402400301490068260000158031DMC1050601EW23051501    NNNNNNN015906718656      400756153                   1US00000001N23051501230515010165001M0177002YN019100120262001102661264853230512  0000000029018409164620992                                                                                         ",
        "49": "840",
        "50": "840",
        "51": "400",
        "63": " MDUZ9MLIO0420  ",
        "71": "00000175",
        "72": "9164620992",
        "93": "018656",
        "94": "018505",
        "95": "9164620992",
        "100": "018656"
    }
}

In case a chargeback is rejected, the message will contain Failure, followed by a rejection code. In this scenario, the following steps apply:

• The transaction status is updated to “Rejected”
• The funds for the acquirer are settled in clearing as normal, no additional steps are required for this.

🗒️

It is your responsibility as the client to manage the reconciliation of chargebacks and disputes.