Disputes and Chargeback FAQ’s





​I received a dispute, what does this mean?

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A dispute is where an account holder or cardholder have contacted their bank directly and disputed the authority for the transaction.

 

What do I need to do if I receive a dispute?

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Reply within the 48 hour timeframe with all documentation available that helps to support the transaction, and answer any specific reason for the dispute. Documentation can include but is not limited to DDR forms, membership agreements, invoices, receipts, attendance records, account statements, terms and conditions, written correspondence between your business and the customer.

 

Where do I send dispute documentation?

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Documentation can be sent by fax or email. If sending by email send to claims@​eway.com.au.



Does the 48 hour timeframe include the weekend or public holidays?

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No, if a dispute is sent to your business on a Thursday the response would be expected by Monday, and if a dispute is sent on a Friday response would be expected by Tuesday etc.

 

What if I am unable to provide all of the information within the 48 hour time frame?

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The 48 hour time frame is set by the bank, if you need more time to gather information please contact eWAY before the timeframe has expired and we can try to get an extension from the bank for you.


Can I speak directly to a customer in regards to a dispute?

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Yes, you are welcome to contact the customer directly in regards to the dispute. If you are able to resolve the issue with them, they may be willing to cancel the dispute with their bank. Please always still ensure that you respond to the dispute email as the bank will not advise if the dispute has or hasn't been cancelled.


I have already received a dispute for a specific customer, why have I got another?

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The dispute may be for the same customer, however it will be for a different transaction. As there are fees involved if the transaction is charged back we will always send your business notification of each new dispute. This gives your business the opportunity not only to provide more information if available but also to speak with your customers directly.

 

What if I have already provided a refund?

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The bank requires evidence that a refund has been processed so please forward a copy of the refund receipt on that shows the date the refund was paid, amount refunded and where the refund was processed to. Please note it is vital that any refunds processed be processed directly to the account or credit card the debit was taken from otherwise the bank may not be able to verify that the account holder or cardholder have received the funds and a chargeback can still be incurred.


If I authorise eWAY to process a refund will I still incur the $44.00 chargeback fee?

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No, the chargeback fee is a fee that is only applied when a transaction is successfully charged back by the bank. If you authorise ​eWAY to process the refund within the 48 hour timeframe, eWAY will process the refund and supply the refund receipt to the bank which will stop the chargeback process.


The customer advised the bank has already processed a refund but I only just got the dispute?

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With credit card transactions the bank will often process a temporary credit to the cardholder (pending outcome of the dispute) when the dispute is raised, if the documentation provided in response to the claim is sufficient to support the transaction the bank will reverse the credit they processed. 


What do I need to provide to guarantee a chargeback will not be processed?

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The decision to chargeback a transaction is made by the bank and not eWAY. Unfortunately there is no guarantee that documentation being provided will stop a chargeback, however in our experience the more information we can provide the bank to support the transaction the less likely a chargeback is to occur.


If you could interview one person (dead or alive), who would it be?

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​Terrence Tao - his mind astounds me and I would love to be able to think like that. 

The customer advised they only raised the dispute as they did not recognise Ezidebit on their statement, can you change the statement note to our business name?

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Under the Australian banking system rules for credit cards, the name of the merchant taking the debit must appear on the credit card statement which is Ezidebit, unfortunately we are not able to put your business name on the credit card statement note. For transactions taken from a bank account the statement note will appear as what you have nominated on your client service agreement.

 

The customer has given authorisation for the payment and received services how can they raise a dispute?

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Under Australian banking system regulations any person that has a debit taken from their bank account or their credit card has the right to dispute the transaction through their bank for any reason, the onus is then on the business to provide documentation to support the transaction.

 

The customer advises they did not raise a dispute - what does this mean?

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Disputes always originate from the account holder or the cardholder contacting their bank. If it is a credit card transaction and the customer advises they have not contacted their bank at all, check the card details being debited against their credit card, the bank does not provide cardholder names and the debits may be being debited from an incorrect card.



How can I limit disputes from occurring?

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Always inform your customers that Ezidebit debit on your business's behalf, a simple way to do this is by giving your customer a copy of the completed DDR form for their files and highlight the section underneath the credit card details that shows they acknowledge Ezidebit will appear on their credit card statement. If it is an electronic payment, ensure this is noted on the payment page of your website. The advice for chargeback liability below will also provide additional information on chargebacks.

 

I have received a chargeback notification what does this mean?

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A chargeback means that the bank has deemed that there is not sufficient authority for the transaction, and the bank has now charged the transaction back. It does not mean that the customer does not still owe your business the funds, however you will need to contact them directly to organise for the funds to be repaid.


I provided documentation within the 48 hour timeframe, why did I incur a chargeback fee?

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A $44.00 per transaction chargeback fee for every transaction which is successfully charged back. This is a processing fee, and not a fee that ​eWAY can waive.


If I get the customer to reverse the chargeback through their bank will the chargeback fee be credited back to me?

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No, the chargeback fee is a processing fee which will not be reversed unless the chargeback is a result of ​eWAY, or ​eWAY's banks error.

 

When will I know if a disputed transaction is going to be charged back?

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Unfortunately the bank does not advise ​eWAY if the dispute is successful or not, if it is successful they will simply debit ​eWAY's account. Whenever a chargeback is processed by the bank ​eWAY will always advise your business of the chargeback via email. The bank can take anywhere from a couple of days to 3 months (occasionally longer) to process the chargeback.


The reason provided for the chargeback was 'cancelled recurring transaction' but the customer had not cancelled with our business?

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Cancelled recurring transaction means that the cardholder has contacted their bank directly prior to the transaction being taken to cancel the debit authority. The bank does not provide any guarantee that they will provide cancellation documentation to ​eWAY so debits can continue until a chargeback occurs.





Advice about Credit Card Chargeback Liability




What is a chargeback?

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A chargeback occurs where the cardholder (or the bank) raises a dispute in connection with a transaction made through your business. If the dispute is resolved in favour of the cardholder, the transaction is charged back (debited) to your account. In other words, you lose the full sale proceeds.

 

What are the reasons for chargebacks?

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Common reasons for chargebacks are as follows:
- Cardholder did not make the transaction (frequently an indication of fraud); 
- Cancelled recurring transaction;
- Goods not as described; Goods faulty or defective;
- Failure to respond to requests for documents relating to the payment.

Chargebacks may also be made for a number of other reasons, including, but not limited to: 
- Goods/Services not received;
- Exceeding merchant floor limit without obtaining authorisation.

 

Will authorisation eliminate chargebacks?

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No. You need to understand the term ‘authorisation’ - what it means, and what it does not mean.

What authorisation DOES mean: 
- The account number is valid;
- The card has not been reported lost or stolen (although it may in fact be lost, stolen or compromised
- [card details improperly obtained or copied] and the card owner is unaware); There are sufficient funds available to cover the transaction.

What authorisation DOES NOT mean:
- An authorisation does NOT confirm that the person providing the card number is the legitimate cardholder. The risk remains that the person providing the credit card number has either stolen or improperly obtained the card.



What does an authorisation indicate?

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This “approval” only indicates that the account number is valid, the card is not currently stopped and that there are sufficient funds to cover the transaction amount at the time the authorisation is obtained. It does not confirm that the person quoting the card number is the legitimate cardholder.

 

How long after a transaction could a chargeback be made?

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Chargebacks can generally be made by either the cardholder or their bank up to a maximum of 12 months from the transaction date, or from the date the goods or Services should have been provided, where delivery was expected subsequent to payment.


Verification of purchaser

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At all times, the onus is on you to verify the purchaser is the genuine cardholder. This applies to all merchants irrespective of the method by which Credit Card payments are accepted.