This article will explain how to handle disputes and chargebacks as a merchant, using our Online Payments platform.
*If you have a transaction you wish to dispute, please see this article here: How do I dispute a transaction?
General Statement on Disputes and Chargebacks
At Airwallex we know that disputed transactions and chargebacks are a risk to your business and can be a time consuming exercise to manage. Subsequently, we have implemented several mechanisms to assist you in preventing and managing disputes and chargebacks.
What is a Dispute?
A dispute is where a cardholder will challenge a transaction on their account with a merchant. At this stage you as the merchant have the choice to either accept or to challenge the dispute. Note that in this case you are strongly advised to provide evidence and there is no guarantee that you will win the dispute. A dispute being raised will result in a chargeback or funds being reversed from your merchant account.
Note that there are strict timelines with regards to disputes that you will need to adhere to.
Dispute Management Dashboard
To assist you with timely and effective dispute management, Airwallex has created the ‘Dispute Management Dashboard’ which you can view in the webapp - see ‘Payment Acceptance Section’.
There are two tabs.
- Response Queue: This is where you can see all disputes awaiting action. Note that there is an expiry date which needs to be adhered to. It is sorted for you by expiry date to help you prioritise disputes. Note that you have several options View Details, Accept Dispute, Submit Evidence.
- All Disputes: This allows you to see all dispute history including those which are won, lost and need a response. You can also see what stage a dispute is at.
What are the stages of a dispute?
There are a number of stages that a dispute will go through as listed below:
- Dispute Raised by Cardholder: A cardholder will dispute a transaction with you as the merchant through their bank (the issuing bank).
- Merchant Decision: This is the stage that you as the merchant can decide to either accept or defend the dispute.
- Accept the Dispute: You accept the dispute.
- Defend the Dispute: In this case, click the ‘submit evidence’ button and choose the dispute reason and ‘type of product’. Though it is optional, it is highly recommended that you submit evidence. Examples of evidence are provided in the next section. It is important to note that once you submit the evidence, it is not possible to change evidence. This will change the status of the dispute to ‘Under Review’
- Dispute Challenge Process: If you have chosen to challenge the dispute, a review will be conducted by the issuing bank. The case will be closed either in your favour as the merchant or the issuer may require more evidence.
- Arbitration: This is where the scheme will review the transaction and make a ruling.
It is important to note that it can be expensive to challenge a chargeback. The following is where you can be charged. See ‘Are there fees associated with disputes?’ for more information.
What evidence do I need to submit for a dispute?
It is optional, however strongly encouraged for you as a merchant to submit evidence if you challenge a disputed transaction from a cardholder. Some of the evidence you may choose to submit include:
- Proof of Delivery
- Description of Goods or Services
- Customer Communication
- Proof Showing Distinct Payments
How can I monitor my dispute history?
Airwallex empowers our customers to review your dispute history. To do this, ‘Dispute Management Dashboard’ which you can view in the webapp - see ‘Payment Acceptance Section’ and navigate to ‘All Disputes’.
From here you can view your dispute history and filter based on certain criteria. We also enable you to export disputes from Airboard.
How Can I Reduce Disputes/Chargebacks?
There are several ways that you reduce the number of disputes:
- Respond to all RFIs in a timely manner as these may turn into disputes.
- Cardholders should know the description of the goods and services that are purchased.
- Ensure that any monies refunded are refunded to the same source (the same as the payment).
- Respond to all disputes within the requisite time frame (you can do this through ‘Dispute Management Dashboard’ which you can view in the webapp - see ‘Payment Acceptance Section’).
- Ensure that your customers were presented with a full copy of policies/terms and conditions prior to customer purchase.
- Use the risk management settings to minimise fraudulent transactions. Using the ‘View Details’ on the ‘Dispute Management Dashboard’ you can also see the geolocation of the device, billing and shipping address to help you determine if a dispute is likely to be fraud.
Are there fees associated with disputes?
Yes there are fees per dispute. Airwallex will charge $25 plus any network charges per dispute as well as a refund fee of $0.15 plus any network charges.