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What happens when a chargeback is raised?

If a chargeback is made against your business, rest assured that Tyl is here to help. We’ll get in touch with you to gather all the necessary information to try to defend the chargeback, if there is a valid case to do so.

The basic process that occurs is:

  1. Card holder disputes a transaction on their account through their card issuer. The card holder must provide details to the card issuer around why they’re disputing the transaction.
  2. The card issuer reviews the dispute to decide if it is valid. If the card issuer accepts the dispute, they pass it onto the card network (Visa, Mastercard, Amex etc.).
  3. The card network reviews the transaction and either requires the card issuer to pay (if there is a liability shift) or sends the dispute to the merchant acquiring bank (Tyl).
  4. The merchant acquiring bank (Tyl) will then either send the dispute back to the card network stating that the card issuer is at fault, or they will forward the dispute to the merchant with guidance on the type of evidence required to be able to defend the chargeback.
  5. If the dispute is passed to the merchant, the merchant can then either accept the chargeback, or they can provide compelling evidence to dispute the chargeback. An example of evidence may be a valid delivery confirmation for goods sent against a claim for non-receipt.
  6. If compelling evidence is provided to defend the chargeback, Tyl will review the evidence and re-present the chargeback back to the card issuer to review.
  7. The card issuer will review the evidence and make a final decision. While Tyl will attempt to defend the chargeback in best manner possible with the evidence provided, there could be times when the card issuer’s decision goes in favour of the cardholder based on the evidence received. In such situations, the merchant may lose out on the funds from the transaction, and a charge may be added to their invoice.

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