Getting to grips with chargebacks

A chargeback generally occurs when a cardholder asks their credit/debit card issuer to reverse a transaction that has already cleared – most commonly as a result of a fraudulent use of the card, or for non-delivery of goods or services. This can mean that a payment that has been received in your Worldpay account could be reversed back to the cardholder – which we understand can of course be frustrating.

As part of this process Worldpay will have an opportunity to present a case with the card issuer, using evidence the merchant has supplied to dispute a chargeback. If successful, the reversal will not take place. Worldpay will assist you, but the final decision lies with the credit/debit card issuer or card scheme (Visa or Mastercard).

Typical chargeback process at-a glance

1. A cardholder has a problem with a transaction made with your business and informs the card issuer (bank or credit/debit card company) of the problem, asking for their money back

2. The card issuer assesses the cardholders case based upon Scheme rules set by Visa or Mastercard:

  • If no chargeback right exists, the cardholder is held responsible for the payment
  • If the cardholder seems to have a case, the card issuer makes a provisional credit payment to the cardholder

3. The card issuer commences the chargeback process and, via the card scheme, obtains funds from Worldpay

4. Worldpay then sends a notice of chargeback to you, this may be a Request for Information (RFI) such as a copy of the receipt or proof of delivery , or notification of chargeback:

  • If you ignore this, the chargeback automatically proceeds unchallenged and your account may be charged for the value of the dispute
  • If you reply, all relevant information will be considered and where possible (in line with card Scheme rules) we will attempt to defend

5. If defended the card issuer looks at the information presented and decides if the information provided satisfies card scheme criteria:

  • If it does, no further action will be taken by the card issuer
  • If your information fails to satisfy the criteria, the chargeback is returned to us and your account may be charged for the value of the dispute

Supporting you through the chargeback process

There are a number of ways that you, the merchant can reduce the chance of receiving chargebacks.  Providing high quality products, excellent customer service, especially making it easy for cardholders to contact you and being mindful of transaction details will all reduce the situations in which a cardholder feels the need to approach their card issuer. These steps will help lower the chances of your customers filing a chargeback. They could also help reduce instances of “friendly fraud”, where consumers attempt to get their money back even though they’ve already received their goods.  For more hints and tips visit

Visa Claims Resolution

There’s some good news on the horizon with Visa simplifying and streamlining its chargeback resolution process via a new initiative: Visa Claims Resolution (VCR). The new model is aimed at proactively eliminating invalid disputes, promoting automated liability assignment where possible, simplifying the workflow, and reducing timeframes. This new Visa Claim Resolution will be effective in the UK from April 2018.