What is a chargeback?

Chargebacks are an unpleasant fact of life for merchants. Hopefully, chargebacks will be a rare event for you, but you should know how to protect yourself.

A chargeback is a transaction that has been disputed by a customer. Chargebacks occur for a variety of reasons. For example, the customer may be unsatisfied with the merchandise, or a criminal may have made fraudulent use of their credit card number. When a customer disputes a charge, you receive a chargeback notification (sometimes called a Chargeback Advice form), and the amount of the original transaction is credited to the customer's account, and debited from yours. (In other words the transaction is "charged back" to you.) You have a right to challenge the chargeback by sending in a rebuttal. Intuit works hard to fight chargebacks on your behalf. To assist us, please respond promptly and file requested paperwork by the submission deadline. You can track and manage chargebacks from the merchant service center.

Should I issue the customer a refund?

No. When you get a chargeback notice, DO NOT issue a refund to the customer. Following a chargeback initiation, credits must be handled through the chargeback process. Manual refunds only confuse the issue and may result in an unnecessary loss.

What is the fee for a chargeback?

The chargeback process

chargeback process diagram

NOTE: When a cardholder initiates a dispute, the cardholder's bank immediately generates a chargeback. QuickBooks Payments is not aware of any problem until we receive the chargeback. The cardholder does not have to notify you, the merchant, prior to contacting their bank. A retrieval request sometimes precedes a chargeback, but not necessarily (read on to learn more about retrieval requests).

What is a retrieval request?

A retrieval request is a request from the customer's card issuer to the merchant asking for documentation (like sales receipts, invoices, and contracts) relating to a customer charge. A retrieval request may precede or be part of a chargeback. When you receive a retrieval request, you must mail or fax the requested documentation to Intuit Payment Solutions as instructed immediately (and at least within the time frame specified by the document). If the documentation you provide settles the question, it may stop the chargeback from proceeding any further.

How can I dispute a chargeback?

When you receive a chargeback, you may file a rebuttal, unless you receive a No Recourse Chargeback notification. To dispute a chargeback, furnish any relevant documentation, include the chargeback notice document and mail, fax or email it all to QuickBooks Payments ChargeBack Department promptly and as instructed on your Chargeback Advice form. Receive, track and download these notifications through the merchant service center.

If the chargeback is resolved in the your favor, please note that it could take up to 65 days to receive funds. If the transaction is still disputed, you receive a second notification about the chargeback status. Follow instructions in that notification.

How can I avoid potential chargebacks?

Many chargebacks can be prevented. Follow these best practices when processing transactions and dealing with customers: