What is a chargeback?

A chargeback refers to a transaction reversal initiated by the cardholder’s issuing bank or creditor. Your customer may file for a chargeback with their issuing bank or creditor for one of the following reasons:
  • Customer does not recognize charge on their credit card
  • Duplicate charge on their account
  • Charge is deemed fraudulent
  • Customer never received the services/merchandise
  • A recurring charge does not stop after cancellation completed
  • Customer is not satisfied with services that were rendered
A chargeback is initiated when the cardholder contacts their issuing bank with questions regarding the charge(s) in question. The issuing bank issues a credit while the charge is investigated. The bank requests supporting documents from the merchant (Active processor) to validate the charge.


What does ACTIVE Network do when a chargeback is initiated?

When ACTIVE Network receives dispute documentation from our Payment Processor our team provides supporting documentation back to the issuing bank on our client's behalf. Chargebacks can be complex and can be issued for a variety of reasons requiring varying paperwork, so we dedicate a team to responding to and refuting chargebacks. ACTIVE Network provides compelling evidence to disprove any fraudulent activity associated with the transaction. If the issuing bank deems the evidence enough to overturn the card holder’s dispute, the funds are returned to the merchant. ACTIVE Network sees a high success rate during these credit card disputes, wherein the disputed charge is reversed and the cardholder has agreed to pay the amount owed.


Why am I receiving this email?

If the cardholder opts to continue to dispute a transaction after supporting documentation has been provided to substantiate the charge, and their issuing bank sides with the cardholder by refunding the amount back to the cardholder's card, there is no further action that can be taken by ACTIVE Network or the Payment Processor. At this point ACTIVE Network will notify your agency via email of the chargeback amount and receipt information ahead of the withdrawal of funds from an upcoming remittance check period.

Your organization may then determine the next best steps to handle the chargeback receipt or order. If the event or activity this customer has not occurred, you may cancel the customer's registration or you may contact them directly for further payment.