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Chargebacks for Managed Merchants

(If you don't know your merchant type, click here.)


A chargeback is a transaction reversal initiated by the cardholder (the person who made the purchase with their credit card) or the card issuer (the bank or financial institution that issued the credit card). When a chargeback occurs, your installment plan will be stopped and put on Delayed status and you will receive an email from Splitit.

Key Things to Know:

  • Shoppers generally have 120 days to file a chargeback after a purchase is made
  • The merchant owns the risk for chargebacks (except for a few anomalous cases)

Common Reasons for Chargebacks

  • Unauthorized Transactions: If a cardholder notices a transaction on their statement that they did not authorize, they may initiate a chargeback
  • Non-Delivery of Goods or Services: If the cardholder paid for a product or service that was not delivered as promised, they might file a chargeback
  • Dissatisfaction with a Product or Service: If a received item or service is significantly different from what was described by a merchant, the cardholder may dispute the charge
  • Fraudulent Transactions: In cases of identity theft or credit card fraud, the legitimate cardholder may dispute charges made without their knowledge or consent

What to Do When You Receive a Chargeback Notice from Splitit

1. Review the Chargeback Notice

Understand the reason for the chargeback. Begin by either accepting the chargeback or disputing it. If you choose to dispute, proceed to Step 2.

2. Gather Your Evidence

Evidence can consist of transaction receipts or order confirmations, proof of delivery for physical goods, other communication with your shopper, Splitit receipts (electronically signed print statements from your Merchant Portal), Splitit's Refund Policy, Splitit's Terms of Use, etc.

3. Manage the Chargeback Case in Your Splitit Merchant Portal

Clearly present your evidence and provide a detailed response to the shopper's concern. It is crucial to be aware of the time constraints associated with disputing a chargeback, as outlined in the "Due Date" field in your Merchant Portal.

Locate and Review Your Chargeback Transactions

  1. Log into your Merchant Portal and click on Chargeback on the left-side menu.
chargeback left
  1. Use the fields at the top to locate your chargeback, specifying a combination of Dispute Status, Dispute Liability, Reference Id, Installment Plan Number, Created Date and Modified Date. It is likely you can just leave the defaults if the chargeback is recent and you have very few chargebacks.

Click Search.

chargeback fields
  1. In the list that appears under the search fields, each chargeback is given its own line (one plan may have multiple chargebacks). Note the Due Date here, which must be adhered to in order to dispute the chargeback. Click on the Plan Number of the chargeback(s) to go to the Transactions screen for that plan.
chargeback list
  1. On the Transactions screen, you can identify the transactions that were charged back by looking for the small hammer icons in the History pane:
chargeback hammer

As with the non-chargeback transactions, you can click anywhere in a transaction line to open information about the transaction(s).

If you have multiple transactions, the easiest way to match the transactions here with the transactions on the previous screen (the chargebacks list), is to match Merchant Reference Id on the chargebacks list to merchantTransactionId here, which you can see by clicking the small “i” icon at lower right.

chargeback i button chargeback merchant id

Dispute Your Chargebacks

  1. Return to your chargebacks list by hitting the back button in your browser or by going to Chargeback on the left-side menu and then searching again.
chargeback left
  1. In the chargebacks list at the bottom of the page, click anywhere in the row (except for the Plan Number) to open up the chargeback dialogue for that transaction.
chargeback list
  1. In the Files section, upload and submit your evidence by dragging and dropping, or by clicking Browse and uploading.
chargeback dialogue

The most compelling evidence to fight a chargeback is "shopper communication," which contains various elements crucial for establishing a transaction's authenticity.

Examples are:

  • Signed orders: You should obtain electronically signed print statements from the Splitit Merchant portal
  • Delivery confirmation receipts
  • Sales receipts/invoices
  • Emails establishing a connection between the recipient of the products and the cardholder: Emphasize excerpts from the conversation where the shopper admits to having the product, focusing on key points rather than the entire discussion
  • Validation of Splitit's Terms of Use
  • Splitit's Refund Policy

When submitting evidence:

  • Circle key components in any supporting documents, such as delivery confirmations or signatures
  • Include a copy of your one-page Terms of Service and Refund Policy, with relevant sections clearly circled

From the Files section, you can also delete files you have uploaded, or you can download one or all of them later.

  1. In the Comments section, click on New Comment and describe the case and the communication you had with the shopper. Provide a detailed description of your uploaded images, explaining how each supports your response in the internal notes section.

Finally click Add Response to finish your filing.

  1. Splitit will review your case as soon as possible. In the interim, you can return to this same chargeback dialogue to see any updates on your case (they will appear in the Comments section). You can also remove or add new files if necessary, or download your files.


Chargeback Initiated

  • When a chargeback is initiated by a shopper, the corresponding amount of the chargeback will be temporarily collected from your merchant account

Chargeback Lost

  • In the event that a chargeback is lost, and there are no other chargebacks pending decision, the associated plan will be automatically canceled
  • In the event that a chargeback is lost, with additional chargeback(s) still in "pending" status, the plan will be canceled upon receiving the outcome of all outstanding chargebacks, regardless of "won" or "lost" outcomes
  • The previously collected chargeback amounts will not be returned
  • The remaining installments, if applicable, will be canceled and we will collect this amount from your merchant account

Chargeback Won

  • If a chargeback is won, the previously collected chargeback amount will be returned to you
  • In addition, if there are no other chargebacks pending, we will attempt to capture the outstanding amount of the plan
    • If the attempt to capture the outstanding amount fails, our system will automatically cancel the plan
    • The outstanding amount, if applicable, will be collected from your merchant account

Chargeback Fees

Chargeback fees vary by merchant agreement.

Chargeback Transactions in Your Merchant Reports

Refer to your Settlement Report (Detail). Net Settlement Amount is money debited or credited to your account. Transaction Type will be either Chargeback or ChargebackReversal.

chargebacks in settlement report


Chargeback Statuses

Open: Chargeback case has been opened for review
Pending: A dispute has been submitted and is awaiting a result
Closed: Chargeback case closed by the shopper or issuer
Lost: Chargeback case ruled in favor of the shopper
Won: Chargeback case ruled in the merchant's favor
Other: Other reasons such as unrecognized



10.3Fraudulent Transaction: No Cardholder Authorization
10.4Fraudulent Transaction: No Cardholder Authorization
11.3Requested/Required Authorization Not Obtained
12.4Processing Error
12.5Incorrect Amount/Processing Error
13.1Merchandise/Services Not Received
13.2Cancelled Recurring
13.3Not As Described or Defective Merchandise/Services
13.6Credit Not Processed
13.7Cancelled Merchandise/Services Reversal or Adjustment


4808Requested/Required Authorization Not Obtained
4812Account Number was Not on File
4831Transaction Amount Differs
4837Fraudulent Transaction: No Cardholder Authorization
4841Cancelled Recurring Transaction
4853Cardholder Dispute Defective/Not as Described
4855Nonreceipt of Merchandise/Goods or Services Not Delivered


How long does the chargeback process take?

The chargeback process timeline varies depending on several factors, including the reason for the chargeback, the card network involved, and the efficiency of the parties involved in the resolution process. Typically, it can take up to 120 days.

How can I prevent chargebacks in the future?

Preventing chargebacks involves a combination of proactive measures, effective communication, and adherence to best practices including:

  • Clear product descriptions
  • Transparent billing descriptors
  • Secure payment processing
  • Excellent customer service
  • Clear refund policy