What is a chargeback?

A chargeback occurs when the cardholder disputes a charge that was made through your merchant account.

If this happens, you will receive a chargeback notification from your merchant services provider. It is extremely important to respond to the notification as soon as possible, as the default judgement is in favor of the cardholder if the merchant does not respond.

The card issuing bank is responsible for the chargeback investigation, and they will decide whether or not to reverse the charge based on the claims of the cardholder and the merchant’s response.

If you’re using Stripe (our default plan after January 3rd, 2014), the chargeback fee is $15, which is refunded if the dispute is resolved in your favor.

If you’re using Merchant Focus + Authorize.Net (our default plan prior to January 3rd, 2014), the chargeback fee is $30, which is nonrefundable regardless of the outcome of the dispute.

If you’re using your pre-existing merchant account, you’ll need to check with your provider.