Chargeback FAQs

What is a chargeback? Is a dispute the same thing?

When we describe chargebacks, we often utilize chargeback and dispute interchangeably. However, they are best defined as:

Chargebacks: Are a forced transaction reversal initiated by the cardholder’s bank. They are meant as a consumer protection mechanism but are often overutilized.

Dispute: An action taken by a cardholder to challenge a transaction appearing on the cardholder’s statement.

Are all chargebacks the same?

No; There are two different kinds of fraud:

True fraud: Payment information that is stolen from a cardholder to make unauthorized purchases by a third-party. 

Friendly fraud: Committed by the cardholder themselves, be it intentionally or unintentionally. 

Some common causes of friendly fraud:

• Forgetful fraud: Cardholder simply doesn't remember making the purchase
• Family fraud: Another household member made an unauthorized purchase
• Statement descriptor: Initiating a chargeback due to not recognizing the statement descriptor 
• Buyer's remorse: Cognitive dissonance, shame, and utilize the chargeback process to get refunded
• Chargeback fraud: Cardholder knowingly manipulates the system to get a refund

Although chargebacks are designed to protect consumers, they can also be exploited by scammers to fraudulently obtain goods or services. When a cardholder makes a purchase and then files a chargeback just to get something for free, it constitutes chargeback fraud. It is important to address all chargebacks no matter the type. 

What are steps I can take to prevent chargebacks?

There are several steps you can take to minimize the threat of a chargeback:

• Use clear billing descriptors
• Be responsive to customer issues before they escalate to chargebacks
• Keep good records of merchant receipts

What do I do when I get a chargeback? (Steps to respond)

It is critical that you respond to a chargeback notice immediately. Follow the steps below to respond:

1. Go to this link https://merlinkresponse.com/
2. Submit the case number, which is always at the top of the chargeback letter
3. In the case amount, submit the amount it's being disputed for
4. Include your email address
5. In the file upload, include all of the cardholder's receipts. Make sure the pictures are not blurry.

Please be aware that the review process does not typically notify you directly if the chargeback is resolved in your favor; however, any reclaimed funds will be returned to your account. 

Contact INGAGE Payments Support at payments@ingageit.com for any specific questions or help.

Need Help?

If you have any questions with this guide or need other payment-related support, please email us at payments@ingageit.com.

Thank you!