Chargeback Categories

As a business that processes card payments, it's important to understand the root causes of your chargebacks. Knowing the category of the chargeback is crucial to both fighting AND preventing them in the future.

Circle has made understanding your chargebacks easy! Once you've set up chargeback notifications you will get notified when a chargeback has been filed against you, and the category of chargeback.

You can use the below list of categories to understand the reason for the chargeback as well as what type of evidence is best in fighting it.

Fraudulent

This is by far the most common reason that a chargeback gets filed and is also the most difficult category of chargebacks to successfully contest.

This chargeback typically refers to unauthorized or unrecognized transactions. Due to this fact it is advisable that you contact the Cardholder directly and ask them to withdraw the dispute on their end rather than contest the dispute if you believe this chargeback was filed in error.

If you decide to dispute a fraudulent chargeback, your team should compile the below evidence and submit to Circle here

1. Invoice Information - This is a receipt or image showing what the purchase was for and information about the customer. For example:

  • Billing Address: Billing address that was provided by the customer for the payment.
  • Customer Name: The name of the customer.
  • Customer Email: The email address of the customer.
  • Customer IP: The ip address from which the customer initiated the payment.
  • Customer Signature: Where possible a relevant document of the customer’s signature.
  • Product Description: A brief description of the product that was purchased.

2. Proof of delivery of goods or services - If you have evidence showing that the customer received the good or service, make sure to include it here. For example, a proof of delivery could be a screenshot of a user's account showing the item/balance is in the account.

3. Customer Communication - If you have communicated with the customer regarding this dispute, you can submit evidence such as the chat history, the body of an email exchange, or transcript of a phone call.

4. Additional supporting evidence - If you have collected any KYC documents or data validating that the account holder is the person making a purchase then submit that as evidence

Customer Dispute

This chargeback reason happens when a customer states they are not satisfied with their purchase or that they have not received what they paid for.

If you decide to challenge a customer dispute chargeback, your team should compile the below evidence and submit to Circle here

1. Invoice Information - This is a receipt or image showing what the purchase was for and information about the customer. For example:

  • Billing Address: Billing address that was provided by the customer for the payment.
  • Customer Name: The name of the customer.
  • Customer Email: The email address of the customer.
  • Customer IP: The ip address from which the customer initiated the payment.
  • Customer Signature: Where possible a relevant document of the customer’s signature.
  • Product Description: A brief description of the product that was purchased.

2. Proof of delivery of goods or services - If you have evidence showing that the customer received the good or service, make sure to include it here. For example, a proof of delivery could be a screenshot of a user's account showing the item/balance is in the account.

3. Customer Communication - If you have communicated with the customer regarding this dispute, you can submit evidence such as the chat history, the body of an email exchange, or transcript of a phone call.

4. Refund or Cancellation Policy - Provide the text of your written policy and/or terms and conditions showing what your customers agreed to PRIOR to purchasing from you.

Processing Error

This chargeback is typically caused by the cardholder suspecting a processing error which can range from duplicate charges for a single purchase to an incorrect amount being charged.

If you decide to challenge a processing error chargeback, your team should compile the below evidence and submit to Circle here

1. Invoice Information - This is a receipt or image showing what the purchase was for and information about the customer. If there are duplicate transactions provide the invoice information for each of the distinct transactions. For example:

  • Billing Address: Billing address that was provided by the customer for the payment.
  • Customer Name: The name of the customer.
  • Customer Email: The email address of the customer.
  • Customer IP: The ip address from which the customer initiated the payment.
  • Customer Signature: Where possible a relevant document of the customer’s signature.
  • Product Description: A brief description of the product that was purchased.

2. Proof of delivery of goods or services - If you have evidence showing that the customer received the good or service, make sure to include it here. For example, a proof of delivery could be a screenshot of a user's account showing the item/balance is in the account.

3. Refund or Cancellation Policy - Provide the text of your written policy and/or terms and conditions showing what your customers agreed to PRIOR to purchasing from you.

Canceled Recurring Payment

The Cardholder has indicated that they previously cancelled a subscription or other recurring payment.

If you decide to challenge a canceled recurring payment chargeback, your team should compile the below evidence and submit to Circle here

1. Refund or Cancellation Policy - Provide the text of your written policy and/or terms and conditions showing what your customers agreed to PRIOR to purchasing from you. This would include any recurring payment agreement that shows the cardholder will be billed beyond the original transaction.

2. Invoice Information - This is a receipt or image showing what the purchase was for and information about the customer. For example:

  • Billing Address: Billing address that was provided by the customer for the payment.
  • Customer Name: The name of the customer.
  • Customer Email: The email address of the customer.
  • Customer IP: The ip address from which the customer initiated the payment.
  • Customer Signature: Where possible a relevant document of the customer’s signature.
  • Product Description: A brief description of the product that was purchased.

3. Proof of delivery of goods or services - If you have evidence showing that the customer received the good or service, make sure to include it here. For example, a proof of delivery could be a screenshot of a user's account showing the item/balance is in the account.

4. Customer Communication - If you have communicated with the customer regarding this dispute, you can submit evidence such as the chat history, the body of an email exchange, or transcript of a phone call.

Credit Not Issued

The Cardholder has indicated that they returned the product or service prior to use and have not received a refund or credit in return.

If you decide to challenge a credit not issued chargeback, your team should compile the below evidence and submit to Circle here

1. Proof of Refund or credit provided - If your team has issued a refund OR a credit in some other means, provide a screenshot.

2. Refund or Cancellation Policy - Provide the text of your written policy and/or terms and conditions showing what your customers agreed to PRIOR to purchasing from you. This would include any recurring payment agreement that shows the cardholder will be billed beyond the original transaction.

3. Invoice Information - This is a receipt or image showing what the purchase was for and information about the customer. For example:

  • Billing Address: Billing address that was provided by the customer for the payment.
  • Customer Name: The name of the customer.
  • Customer Email: The email address of the customer.
  • Customer IP: The ip address from which the customer initiated the payment.
  • Customer Signature: Where possible a relevant document of the customer’s signature.
  • Product Description: A brief description of the product that was purchased.

4. Proof of delivery of goods or services - If you have evidence showing that the customer received the good or service, make sure to include it here. For example, a proof of delivery could be a screenshot of a user's account showing the item/balance is in the account.

5. Customer Communication - If you have communicated with the customer regarding this dispute, you can submit evidence such as the chat history, the body of an email exchange, or transcript of a phone call.


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