Chargebacks Timelines
The diagrams below illustrate various phases in the chargebacks process.
Chargeback Open
Merchant Perspective:
- Merchants subscribed to notifications will receive an email when a chargeback is opened for Plan ID xxx.
- Merchants can view the chargeback details, including the dispute ID, in the chargeback section of the Hub portal.
Shopper Perspective:
- Shoppers receive an email notification when a chargeback dispute is opened for their plan.
- Shoppers can view the chargeback status in the shopper portal under the relevant installment and plan.
- Shoppers cannot update their card while the plan is under dispute.
Transaction Flow:
- The plan associated with the chargeback will be paused, preventing further authorizations or charges until a resolution is received from the processor.
- The plan status will be marked as "In Dispute".
- Refunds cannot be processed for transactions under chargeback.
- Updating the card details will not return the plan to "In Progress" status.
Money Flow:
- When a shopper initiates a chargeback, the corresponding chargeback amount is temporarily withdrawn from the merchant’s account.
- A reserve amount, including the outstanding balance and any past charges at risk of chargeback (charges captured within the last 120 days), is collected into a reserve.
- The Settlement Report will include:
- "Chargeback": The corresponding chargeback amount.
- "Chargeback Reserve": The reserve amount collected.

Chargeback Resolutions
Resolution Won
1. Won with Additional Chargebacks "Pending Decision"
Merchant Perspective:
- Merchants receive an email confirming the chargeback was won.
- The shopper is given an option to:
- Update their card within six days to resume the plan.
- Pay the full balance.
- Merchants receive an email notification if the shopper updates their card and the plan resumes.
Shopper Perspective:
- Shoppers receive an email informing them that they lost the chargeback and can either update their card to continue or pay the full amount.
Transaction Flow:
- The plan remains "In Dispute".
- If the shopper updates their card successfully, the plan status changes to "In Progress", but "In Dispute" remains due to unresolved chargebacks.
Money Flow:
- The previously collected chargeback amount is returned to the merchant if the chargeback is won.
- The system awaits the resolution of additional chargebacks.
- If all additional chargebacks are won, the previously collected chargeback amounts are returned, and the outstanding balance is captured.(depends on the shopper's decision).
- Settlement Report includes:
- "ChargebackReverse": Refunded chargeback amount.
- "ChargebackReserve" (+): The returned outstanding balance amount.
2. Won with No Additional Chargebacks "Pending Decision"
Merchant Perspective:
- Merchants receive an email confirming the chargeback was won.
- Shoppers are given the option to update their card within six days or pay in full.
- Merchants receive an email if:
- The shopper updates their card and the plan resumes.
- The shopper pays in full.
- The plan is fully captured if the shopper takes no action.
Shopper Perspective:
- Shoppers receive an email stating they lost the chargeback and can update their card or pay in full.
- If they take no action within six days, they receive another email stating the plan has been fully captured.
Transaction Flow:
- If the shopper updates their card, the plan resumes "In Progress."
- If the shopper does nothing, the plan is fully captured and marked "Cleared."