Guide to Payment Disputes: Get familiar with the chargeback process

Challenging a transaction dispute (a chargeback process) submitted by your customer to their credit card issuer is a time sensitive process. We want to make sure you are well informed about this process.

General

Challenging a transaction dispute (a chargeback process) submitted by your customer to their credit card issuer is a time sensitive process. We want to make sure you are well informed about this process. Getting yourself familiar with it in advance can save you time and money.

Here's the essential information you’ll need to know:

What is a dispute?

This is when a customer contacts their credit card issuer and disputes a completed transaction on their credit card from the past 120 days (4 months). Such a dispute can be opened about a completed transaction associated with a machine you operate, using a Nayax device. This process is also known as a Chargeback.


What happens next?

    • The credit card issuer is reaching out to Nayax and is providing us with a chance to reach out to you, get your response, and send it back to them. 
    • Your response can either be agreement with your customer’s claim or disagreement, which means we will help you challenge this dispute.
    • The most important information we get from the credit card issuer is the reason for the dispute (for example: charged and didn’t receive the product, charged and received the wrong product, didn’t authorize the transaction etc.).
    • The dispute reason should guide how you respond to it. If you challenge the dispute, you will need to provide data to prove the transaction's legitimacy. 
    • Upon receiving your response to the dispute (agreement or disagreement), and in case you decide to challenge it by providing supporting data, we send the information to the credit card issuer on your behalf.

Let's discuss challenging a dispute in more detail.

Let's assume a customer opened a dispute with their credit card issuer. This dispute is about a completed transaction from the past 120 days (4 months) associated to a machine you operate and you decide to challenge it. Let us outline for you in more detail how it works and what is crucial to remember about this process.

If you only remember two things about this process, remember these two: 

  1. The process is time-sensitive, and you have only a short time frame to respond.
  2. Please provide everything when you respond to it, as it is a one-time process. 

Day after day, here's what it looks like to challenge a dispute:

    • Day 1:  When the credit card issuer contacts us, we immediately send you an email (sent from: [email protected]) asking for your response. 
      • We'll outline the relevant transaction, the amount, the date, and the reason for the dispute.
      • We'll recommend which data you should provide based on the dispute reason.
      • MoMa and Nayax Core will mark the transaction as a "chargeback", since the amount may be refunded to the customer. Due to this, refunds are disabled for this transaction throughout the dispute process.

    • Prepare your response: If you decide to challenge the dispute, we recommend you respond to our email as soon as possible, following its guidelines. Please provide all the data that can prove the legitimacy of the transaction. 

    • Day 3: We'll remind you if you didn't notice our first email or didn't respond yet. At this point, you must respond to us within 24 hours if you decide to challenge the dispute. A failure to respond within 4 days of the first email will result in automatic dispute acceptance. 

    • Day 4: The last day you can respond. Our team will review your challenge, and the supporting data. We'll forward it on your behalf to the credit card issuer for review and final decision. 

In general, we, You and Nayax, get 5 days to reply to a dispute, so acting fast is key. 

What happens after you challenge a dispute?

    • Once we submit on your behalf your response to the credit card issuer, alongside the data to prove the legitimacy of the transaction, the process is out of Nayax's control, or yours. 
    • In general, the issuer may approach the customer, provide him with your response and the customer may withdraw his dispute. 
    • It may also be that the decision is to accept the customer’s dispute, regardless of the evidence you provided. 
    • This process can take between a few days after we provide the issuer with your response, to a 45-day process. Again, after we submit the response on your behalf, the process is out of Nayax's control or yours.
 
What happens while you wait for a decision? . 
    • You cannot issue a refund for this transaction, and this transaction is highlighted as Chargeback in Nayax Core and MoMa.
What happens when a decision is made?
    • We will notify you by email what was decided. 
    • The decision is final and cannot be challenged, regardless if it is in your favor or not.
    • If the decision is in your favor, no further action is required. 
    • If the decision is to accept the customer’s dispute you’ll be charged the amount of the transaction, as well as with a processing fee of €25 (or equivalent) that is paid by Nayax directly to the credit-card issuer.
    • Due to the length of this process, the charges, both the transaction and the fee, may reflect on an invoice a few months after the dispute was initially opened. These amounts will be marked as “chargebacks”. 

To sum it up:

 
 

Disclaimer

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