What is a chargeback?

Modified on: Sun, 24 Sep, 2017 at 8:21 PM

Definition


A chargeback is a mechanism created by the Bank of Mexico to dispute charges made to a credit or debit card. It exists as a protection for the cardholder against charge made to their card without consent.


Origen


A chargeback is generated when the cardholder contacts their bank to dispute a recent charge to their card from your company. Their bank then creates a chargeback request to your company. When Conekta recieves this chargeback request we discount the amount of the charge from your available funds and send you an email notifying you that a chargeback has been applied to your account.


Providing Evidence


Your company has 2 business days to provide evidence confirming that the charge made to the cardholder is legitimate and that the product or service was delivered successfully to the cliente. 


Resolution


Conekta sends all evidence received to the issuing bank for them to make a verdict:


Chargeback won: If the issuing bank decides that the charge is authentic based on the evidence you sent, then the chargeback is won and the funds will be returned to your Conekta account available funds.


Chargeback lost: If the issuing bank decides in favor of the cardholder, the amount of the disputed charge will be returned to the cardholder and your company will have lost this amount.


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