A chargeback occurs when a credit card holder contacts his bank or credit card company to dispute a charge on his account. Common reasons for chargebacks include:
- The cardholder does not recognize the charge or recipient on the statement.
- The cardholder did not receive the product or service.
- The cardholder was unsatisfied with product or service.
- The cardholder’s credit card was stolen or used without permission.
When a chargeback is issued, the total amount of the chargeback is forcibly removed from WePay's bank account. In turn, the total amount of the chargeback is removed from your Keap Payments account. The funds are removed from your available balance and held in reserve until the chargeback process is complete. The chargeback process is long and largely dependent on banks and issuers.
Note: If you choose to challenge a chargeback, the process typically takes about 45 days from the date of the chargeback.
If you have received a chargeback, you will receive an email notification from the credit card company. If the funds in your Keap Payments account are insufficient to refund the payer, we debit the bank account on file.
It is important to maintain a low chargeback rate (number of chargebacks / number of successful payments). A high chargeback rate can result in slower processing times, higher reserves, and could result in the eventual closure of your Keap Payments account.
Typically, we hold our merchants to maintain no greater than a 1% chargeback rate. The chargeback email details the transaction and the reason behind it. As the merchant, you have two options: to concede or challenge.
What happens if I concede a chargeback?
By conceding a chargeback, you decide to not challenge the chargeback. You should concede a chargeback if you cannot prove that the good or service was actually provided. If you concede a chargeback, the total amount of the chargeback is permanently removed from your WePay account.
How do I challenge a chargeback?
If you believe that the payment has been wrongfully disputed, you have the ability to challenge the chargeback. To challenge the chargeback, click the Challenge button in your chargeback notification email.
This action enables you to provide information about the payment and upload documentation to prove that you provided the good or service. The information that you submit with this form is used to challenge the chargeback, so make sure you submit as much pertinent information as possible. Also note that audio and video files cannot be submitted. Suggested documentation includes:
- refunds policies as agreed to by the payer
- tracking numbers proving receipt of goods
- communication from the payer, acknowledging receipt of goods or services
Note: you must respond with your challenge within three business days of receiving the chargeback email!
Once submitted, WePay reviews the information and decides whether or not to fight the cardholder’s bank on your behalf. WePay will fight the chargeback if the information provided by you is sufficient to win the chargeback.
Once you submit information to challenge the chargeback, it can take 30-45 days for the credit card company to return with a decision on the dispute.
If you are unable to submit the documentation through the Keap Payments merchant center, try the following actions:
- Clear cached files in web browser
- Reset web browser
- Use another web browser entirely (Google Chrome recommended)
- Use a desktop/laptop instead of a mobile device
If the steps above do not work you can respond to the chargeback email you received. Attach the dispute documentation to the email.
Note: WePay Support may respond directly to you through this email exchange.
What happens if I win a chargeback?
If the chargeback is dropped against your account, the total amount of the chargeback is released from your reserve into your available balance. You will be able to withdraw the total amount of the chargeback regardless of any other reserves you may have on your account. You will be notified if you have won a chargeback by email, but keep in mind that this process can take up to 45 business days.
How do I view a chargeback status?
Once you have Challenged or Conceded you may see the following statuses.
Pending WePay review – chargeback has been challenged and WePay is challenging the chargeback on behalf of the customer.
In review – WePay has submitted the chargeback documentation and the card issuing bank is reviewing the documentation to make a decision on the chargeback.
Resolved – A chargeback decision has been made and the merchant either won or lost the chargeback.
To find out if the chargeback was won or lost:
- Check the resolution email from WePay titled Your chargeback has been resolved.
- Reply to emails you received regarding your chargeback. This is usually the fastest and easiest way to get updates.
- Review your merchant account funds or your most recent settlement to see if the funds from the chargeback have been added back to your account.
How do I avoid chargebacks?
Chargebacks are intended to protect cardholders from fraud and against malicious merchant behavior. Most chargebacks you receive will likely be due to recognition issues (the cardholder does not recognize the charge from WePay on his/her card). Other common reasons include the buyer not receiving the items or service (known as non-receipt) or claims that the good or service was not as described.
To prevent recognition chargebacks, we recommend that you remind your customers that the charge will show up as "WPY*" on their statements, followed by the name of the payment account that charged them.
Non-receipt and not as described chargebacks are more within your control to prevent. We suggest keeping all tracking numbers on items that you ship. Make sure you set appropriate expectations with your customers as to when they can expect full service or delivery. Keeping good records is a great way to challenge chargebacks but providing outstanding service to your customers is the best way to avoid them all together. Stay in communication with customers to manage expectations and gauge their satisfaction. Be honest and upfront about any delays you are experiencing and be willing to issue refunds.
Best Practice - communicate your refund policy clearly:
- In the sequence of pages before final checkout, with a Click to accept or other acknowledgement checkbox.
- On the checkout screen, near the submit button.
The disclosure must not be solely on a link to a separate web page.
Chargebacks are a long process that can contribute to the closure of your Keap Payment account. It's important you keep an eye on the number of chargebacks you receive and work to minimize that number. For more ideas on preventing chargebacks feel free to call or chat with our Keap Support Team.