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Disputes & Fraud

A Paybox Dispute (also known as a chargeback) occurs when a cardholder questions your payment with their card issuer.

As a marketplace, you want to minimise customer disputes as they can incur additional fees from the card issuer and Paybox. It is far less costly to resolve a complaint with a refund or voucher, disputes are usually a customer's last resort.

To process a chargeback, the issuer creates a formal dispute on the card network, which immediately reverses the payment, pulling the money for the payment—as well as one or more network dispute fees—from Paybox.

We recover dispute charges from you, and we will therefore make contact with to try and resolve the customer dispute. This means we will need to provide evidence to the card issuer, they will then decide if it's legitimate and the dispute will be worn or lost accordingly.

Avoiding chargebacks due to unprocessed refund requests

Customers often raise a dispute if they have asked for a refund and the refund is never processed. Sometimes customers contact the business directly to request a refund instead of contacting the marketplace.

  • If the order has not been completed yet on the terminal the business can process the refund themselves by cancelling the order on the terminal.

  • If the order has been completed then the business must contact the marketplace owner so that the refund can be processed in management.

  • It is very important that all businesses on your marketplace are aware of how to contact you if a refund needs to be processed, and the importance of ensuring requested refunds are processed. Customers who request a refund and do not receive it are likely to raise a costly dispute.

Disputing a chargeback

Here are a few reasons that customers may raise a chargeback and what you can do to investigate:

  • The customer did not receive a refund that was promised by the outlet:
    These disputes are hard to resolve, instead, you should avoid these by ensuring refunds are not missed and your outlets know how to contact the marketplace to process a refund, and how to cancel an incomplete order on the terminal.

  • The customer thinks the charge is fraudulent as they don't recognise it:
    Every dispute is linked to an order, which means you have the customer’s contact details. You should contact the customer and find out why they raised a dispute. Contacting the customer by email ensures you have a record of their reply.

  • Someone else has been using the customer’s card without their knowledge:
    Strong customer authentication, sometimes known as 3D Secure, reduces the number of fraudulent cards that are used, but it does still happen sometimes. This type of dispute is hard to win, you can try to find out if the customer knows who may have used their card, or if it is actual fraud. If it is valid card fraud then it is hard to win the dispute, but you can report this to Action Fraud.

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