What is a Chargeback?
How many days do I have to dispute the chargeback?
You have 5 days from the chargeback date to submit a dispute. Please provide your dispute documentation to Wepay’s chargeback email notification. If you are unable to locate Wepay’s chargeback email, please send the documentation to the payments team at Regpack <payments@regpacks.com>.
Documentation should include
- Signed contracts, agreements or terms of service
- Correspondence with the payer (emails, texts)
- Tracking numbers and/or delivery confirmation (sign into your carrier's website to supply full URL address information)
- Refund policy (a screenshot displaying the policy as located on your website try to include the browser URL if possible in the screenshot)
- Itemized Receipt
- Digital Services: Logins with the I.P. and access information
- Any proof or document showing that the payer’s item was received, services were rendered, items were as described or the charge was authorized by the customer
What happens once I dispute a chargeback?
If you challenged the dispute through your WePay dashboard it will show as pending review,. Wepay’s Chargeback team typically reviews disputes within 7-10 business days of being challenged. If sufficient documentation was provided, Wepay’s team will then challenge the dispute directly with the credit card issuer. Please note that the credit card issuer has 45 days from the date of when we challenged the chargeback to issue a response. In the event that a reversal did occur, Wepay would recommend that the payer contacts them with a reversal statement. This could be a bank statement showing recharge or a letter from your card issuer. Wepay can be reached via the form here.
My applicant told me they called their bank and reversed the chargeback. Will a chargeback reversal show in Regpack? How will I know the reversal was successful?
Please let us (payments@regpacks.com) know ifn your applicant has reversed a chargeback. We will confirm with Wepay’s chargeback team that the chargeback has been reversed on their end as well. Once the Chargeback has been reversed and credited back to your merchant account, you will see this credit in your subsequent payout.
The chargeback reversal will not log in Regpack, so once the chargeback is confirmed as reversed, a manual payment will need to be logged to bring the applicant's balance up to date.
Here's how to process a manual payment
Do the processing fees also get returned?
Unfortunately, the processing fees are not refunded.
Is there a fee to process a chargeback/refund?
Yes, your business is charged a chargeback fee each time a chargeback is issued. You can receive confirmation of the fee by sending a written request to <payments@regpacks.com>. Although a chargeback can be successfully disputed, the chargeback fee cannot be refunded.
How long after the payment does the shopper have to issue a chargeback?
Depending on the bank's policy, a card holder has a right to dispute the charge up to 1 year after the purchase was made. Merchants can file a chargeback dispute up to 7 days after the chargeback has been posted on the account. For more information on disputes please see this link.
How was this applicant able to issue a chargeback? Our policy clearly outlines a no refund policy, and they read the terms of service.
A chargeback is issued when a shopper contacts their bank and reports a fraudulent charge on their statement, or claims they did not receive services for their payment. The bank then takes the money back from the payment processor with no warning or notification, as it is a customer / consumer right to dispute what they believe or perceive to be fraudulent activity. Unfortunately, chargebacks cannot be avoided, only disputed. We recommend contacting the applicant immediately if they issue a chargeback.
I received a notice there are too many chargebacks on my account. What can I do now?
If the chargeback level on your merchant account has surpassed the acceptable thresholds established by MasterCard and Visa the Regpack payments team will reach out to you. As a reference, the industry-acceptable threshold for excessive chargeback ratio (# of chargebacks divided by # of sales) is 1% or higher. The payment processor will send you the the chargeback ratio for your account in the past month:
- Number of sales
- Number of chargebacks
- Chargeback ratio
Regpack's goal is to help you correct this and get back on track.
It is critical that you create an action plan with the payment processor.
To prevent chargebacks
- Assess your business and understand the root cause for the elevated chargeback levels.
- Ensure your Terms and Conditions are clear
- Set a custom soft descriptor
- Clarify your refund policy for registrants
- Clear description of the product/service
- You know your business best, however; if we can help in analyzing please let us know.
To reach the Payments team, email payments@regpacks.com