Handling Customer Transaction Queries and Chargebacks

This section explains how to handle customer queries and disputes related to payments made via Paysafe.

Retrieving Transaction Details

The following options are available to merchants to search for and retrieve transaction details on the Paysafe platform:

  • Using the Card Payments APILook up an existing transaction by providing the transaction ID in the API request.
  • Using the Merchant Back Office – Search for a transaction, based on ID, date, amount, and a range of other criteria.
  • Setting up Customized Reports – The Paysafe Merchant Back Office enables you to set up regular reports, which can be sent to your email address in CSV format, containing details of all your transactions processed on the Paysafe platform.

Handling Chargebacks and RFIs

A chargeback can occur when a customer disputes a transaction on their card statement. This usually happens when they do not recognize the transaction and need more information to work out whether they made it, or if it was fraudulent or unauthorized. If the dispute cannot be resolved then the transaction you've initially received payment for is subsequently rejected by the issuer and any funds received will be debited from your account and returned to the cardholder.

Responding to a Chargeback

The Chargeback process may start with a retrieval request, also known as a Request for Information (RFI), which is raised by the credit card issuer. If you receive a retrieval request you must respond with detailed information about the disputed transaction, including evidence to support your payment, such as proof of purchase. This information must be sent to Paysafe. If you do not respond in time to the RFI, it may become a chargeback.

If you want to challenge a chargeback you must send us dispute document within 5 business days from the date when the chargeback was posted to your account. In cases where the disputed transaction amount has already been refunded or credited back to the customer's account, Paysafe will automatically respond to the RFI for the merchant (a process called Auto-representment). Auto-representment will also apply if the transaction is 3DS or if the amount of the chargeback is much greater than the transaction amount.

Merchants can set up a chargeback report via the Paysafe Merchant Back Office to receive daily notifications of any transactions that are flagged as chargebacks.

For more information on handling chargebacks, refer to the Chargeback Guide (also available in the Help section of the Merchant Back Office).

Auto-representment

Auto-representment occurs when Paysafe automatically represents chargebacks on the merchant’s behalf.

When you sign in to the Paysafe merchant back office, you may see that the chargeback has been disputed without your consent. Through its robust dispute management platform, Paysafe has defined rules to dispute on the merchant’s behalf. For instance, this may happen when:

  • a transaction has been fully or partially refunded;
  • the disputed transaction had been flagged as Verified by Visa or Mastercard SecureCode, but the Issuing Bank still submitted a fraud chargeback.

Receiving a Chargeback after Issuing a Credit

Please note that if you have issued a credit for a transaction and then received a chargeback it is most likely because the chargeback was issued before the credit was processed. This is not uncommon as there is a time delay between the client requesting a chargeback and the bank sending the information to Paysafe. In this case the chargeback will be auto-disputed and automatically reversed in your favor.

How to Reduce the Risk of Chargebacks

  • Consider implementing the Address Verification Service (AVS) and CVV/CVV2/CVD checks on card payments.
  • If trading in a region where the use of cardholder authentication is prevalent (e.g., UK), you should implement the 3D Secure API, which ensures that cardholders are authenticated during the online transaction, significantly reducing the risk of chargebacks.
  • Provide a description of your service that customers will easily recognize on their card statements. See Specifying the Merchant Descriptor.
  • Send the customer an email receipt containing details of the transaction and any amounts deducted from their card.
  • Clearly display your contact information, so that customers can contact you if they have a query.
  • Make your cancellation, return, and refund policies easy to find and understand.
  • Keep customers updated throughout the delivery process

Specifying the Merchant Descriptor

You can specify the description of your service and telephone contact number that appear on the customer's statement using the merchantDescriptor field as shown below:

"merchantDescriptor": {
   "dynamicDescriptor":"OnlineStore",
   "phone":"12345678"
}

For more information see merchantDescriptor in the API Reference section.

Not all processing gateways support this parameter. Contact your account manager for more information.

Cancelling a Transaction and Processing Refunds

  • You can cancel a pending settlement before it is batched by Paysafe, which is typically at the end of the business day on which the original settlement request was made.
  • You can make either a full or a partial refund for a transaction after it has been settled. For details, see the Refunds API in the API Reference section.
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