ChargeBack Introduction

ChargeBack means that the cardholder can apply to the bank to refuse to pay a certain transaction on the bill within a certain period of time (usually 180 days, some payment institutions may stipulate a longer period) after payment.
Due to the differences between online transactions and face-to-face transactions, no matter which transaction platform you use, as long as the cardholder uses a credit card for payment, such risks cannot be completely avoided.
For example: the cardholder purchases a mobile phone in a store and asks the card issuing bank to cancel the payment due to reasons such as not receiving the product or the product is not on the board after payment.

1. Chargeback Generation Path

2. Impact of order chargeback

Charges for chargeback orders are frozen: After a chargeback occurs, the payment for this order will be temporarily frozen by the acquiring bank until the chargeback processing is completed and settled according to the judgment result of the issuing bank.

3. Common Chargeback Types

3.1 fraudulent chargeback

Unauthorized by the cardholder: that is, the transaction is not made by the person himself, and is usually caused by the cardholder’s card loss, theft, or fraudulent swiping of the card.

3.2 non-fraudulent chargeback

1. Non-receipt of the goods: the merchant refuses to pay due to the failure to deliver the goods or deliver the goods in time.
2. The goods are not on the board or the goods are damaged: the goods received by the buyer do not match the pictures on the website or the goods received are damaged.
3. Cancellation of the order: After the buyer placed the order, he negotiated with the merchant to cancel the order, but he did not receive a refund from the merchant.

4. Common Dispute Status

4.1 Tune up

The buyer feeds back the abnormality of the order to the issuing bank, and the issuing bank will adjust the order after verification. If the adjustment is passed, it is a normal transaction. If the adjustment fails, the order will be converted into a chargeback.
Suggestions for merchants to deal with: Prepare materials and submit according to the requirements of the order transfer notice. If there is indeed an abnormality in the order, it is necessary to communicate with Payermax in advance to explain the situation.

4.2 Second chargeback

After the bank judges that the merchant has won, the buyer is not satisfied with the judgment result and initiates a second chargeback for the order by changing the reason for the chargeback.
Suggestions for merchants to respond: The second chargeback appeal method is the same as the first chargeback, and corresponding materials should be prepared according to the buyer’s chargeback reasons.

Note:

The second chargeback is an independent chargeback order. After the chargeback occurs, the same chargeback processing fee as the first payment may still be charged, and it will not be refunded regardless of the appeal result.

5. Common Dispute FAQs

5.1 Dispute Handling Process

5.1.1 Within what time frame can a user initiate a dispute?

Users typically have up to 180 days from the transaction date to initiate a dispute. The specific time limit may vary depending on card network regulations and the nature of the dispute.

5.1.2 Can users initiate disputes arbitrarily?

Users must provide valid reasons for disputes as defined by credit card organizations (e.g., Visa, Mastercard). Common valid reasons include: fraudulent transactions, non-receipt of goods/services, significant discrepancy in product description, duplicate charges, and unprocessed refunds. Issuing banks conduct preliminary reviews and may reject applications with insufficient grounds or evidence.

5.1.3 What is pre-arbitration? Under what circumstances does it occur? How should it be handled?

Pre-arbitration is a subsequent phase in the dispute process that may be initiated when the issuing bank does not accept the evidence submitted by the merchant. The detailed process is as follows:

User initiates a dispute -> PayerMax notifies the merchant -> Merchant submits defense materials -> PayerMax submits materials to the issuing bank -> If evidence is accepted, the dispute is closed and funds are returned to the merchant -> PayerMax notifies the merchant of the result;

If evidence is not accepted, the issuing bank may initiate pre-arbitration and submit new evidence -> PayerMax notifies the merchant -> Merchant decides whether to participate in pre-arbitration -> PayerMax relays the decision to the channel -> Card network makes a final ruling -> PayerMax notifies the merchant of the arbitration result.

5.1.4 Which countries/payment methods allow dispute initiation?

Disputes may arise with all payment methods. Users must submit valid reasons and evidence to their issuing bank/e-wallet provider for review. Once approved, a formal dispute is established. The specific handling process is as described in Question 1.3.

5.1.5 How long does it typically take to notify merchants of dispute results?

The dispute resolution process typically takes approximately 180 days. The actual duration may vary depending on the payment channel, country/region, and payment method.

5.1.6 What should be done if a dispute remains unresolved after 180 days?

This situation usually occurs with non-card payment methods due to delayed feedback from upstream channels. We will continue to follow up and actively promote case resolution.

5.1.7 How can I check dispute orders?

After a dispute is initiated, the system will send email notifications to your company's risk control email address.

You may also check through:

• Logging into Merchant Platform (MMC) and navigating to Dispute Management → Dispute Inquiry;

• Integrating with Dispute Callback Notification.

5.1.8 How should I handle a previously resolved dispute that has been raised again?

This situation is relatively rare and typically occurs with non-card payment methods when users initiate a new dispute for the same order. Please submit defense materials following the standard procedure.

5.2 Dispute Handling Fees

5.2.1 What fees are involved in dispute cases? Who charges these fees? Are they refundable if we win the dispute?

A dispute handling fee of US$10 per case will be charged for each dispute. This fee is collected by payment channels and card networks. Please note that this fee is non-refundable regardless of the dispute outcome.

5.2.2 What is the specific amount of the dispute handling fee? Is it a fixed fee?

The current dispute handling fee is US$10 per case. This fee may be adjusted in the future due to changes in payment methods and channel policies. Any changes will be communicated to merchants in advance and reflected in contract updates.

5.2.3 Who is responsible for paying the dispute handling fee?

According to our contract terms, the dispute handling fee is borne by the merchant. The specific fee amount will be clearly stated in the contract, and this term is non-negotiable.

5.3 Dispute Evidence Requirements and Submission

5.3.1 What materials are required to resolve a dispute?

The specific evidence requirements are listed in the dispute notification email. Generally, you should prepare the following documentation:

• User identity information (registered name, UID, phone number, email, IP address, etc.)

• Transaction proof (order details, product/service content, quantity, payment amount, currency, and user name)

• Consumption records (user's historical top-up and consumption records without previous disputes, and records related to the current transaction)

• Proof of delivery (if applicable, including logistics documents, etc.)

• Communication records (if applicable, relevant correspondence with the user)

• Any additional materials that can prove you have provided goods/services as agreed

Please note that specific required evidence should be tailored according to the dispute reason.

5.3.2 Are sample evidence templates provided for different dispute types? What are the key focuses for preparing materials based on different dispute reasons?

Professional dispute assistance services are available upon request to provide guidance.

The key focuses for evidence preparation across different dispute types are as follows:

• Fraud-related Disputes: Emphasis should be placed on providing user identity information and evidence proving that the transaction was authorized by the account holder.

• Goods/Services Not Received Disputes: Priority should be given to submitting proof of delivery and customer usage records.

• Goods/Services Not as Described Disputes: The focus should be on providing evidence that demonstrates consistency between the shipped products and the original order details.

5.3.3 What language should be used for dispute evidence? Are there specific language requirements for screenshots?

To ensure a successful dispute defense, all submitted materials (including screenshots and written descriptions) must be in English. Non-English materials may prevent reviewers from accurately understanding the information, which can directly impact the outcome of the dispute.

5.3.4 How can I submit additional evidence if I have already provided initial materials?

We recommend uploading dispute files through the Merchant Platform (MMC). Once uploaded, files cannot be modified. If you need to supplement materials within the response timeframe, you may reply via email. Requests beyond the response deadline will not be accepted.

5.3.5 What happens if I don't submit dispute evidence within the required timeframe?

Failure to submit dispute evidence within the specified timeframe will be considered as merchant acceptance of the dispute. The case will be ruled in the user's favor, and the frozen amount will be deducted from your account and refunded to the user.

5.3.6 Can I still submit evidence after the dispute response deadline? How will it be handled?

We will attempt to submit overdue materials to the channel. However, if the channel's final processing deadline has passed, it will be treated as failure to respond on time, and the dispute will be considered accepted by the merchant.

5.4 Dispute Withdrawal

5.4.1 If a user agrees to withdraw a dispute after communication, where should they apply?

The user needs to directly contact their issuing bank or e-wallet provider to request dispute withdrawal. Once successfully withdrawn, please notify our team. We will then verify with the payment channel that the dispute has been formally closed and subsequently release the frozen funds.

5.4.2 After a user requests dispute withdrawal, when will merchants be notified? Is the handling fee refundable? Is it counted as a win?

Merchants should promptly inform us upon confirming the withdrawal. We will notify merchants after verifying with the channel, with the notification timeframe subject to channel response speed. Please note that the dispute handling fee is non-refundable once charged; however, such cases will be recorded in favor of the merchant.

5.5 Disputed Outcome

5.5.1 Where can merchants check the specific reasons if they lose a dispute?

Typically, specific reasons for losing a dispute are not disclosed by upstream payment channels or card organizations.