Merchants’ Credit Card Chargebacks Rights


Chargebacks were designed to save customers’ privileges, but that doesn’t imply that their primary objective is to harm merchants. Did you understand that you, as an online merchant, also have some chargeback rights?

Credit Card networks, like Visa and Mastercard, deliver multiple rules and regulations that save you from fraudulent measures, comprising friendly fraud and chargeback fraud. You can also save your online business from unnecessary returns and deceitful buyers.

What are Merchants chargeback rights?

Not every online business knows that buyers must try to fight the online payment with the merchant before disputing a chargeback. When the provider can’t fix the issue, they can request the customer to verify their tries to acquire a key with the online high-risk merchant account. You like to pay attention to some other factors for improved protection.

Chargeback Reason codes

Chargeback Reason codes are associated with chargeback notices and deliver complete details about why the chargeback was administered. Buyers must deliver a cause for disputing a chargeback, so you will understand what you can accomplish and what sort of proof you like to deliver to the issuing bank. It also assists you to determine whether funding in a dispute will be beneficial.

Note that different chargeback reason codes need cardholders to reach the merchant before submitting a chargeback to fix the issue.

Late delivery retrievals

If a customer receives a product after the approved delivery timing, the user must bear the product before disputing a chargeback. Such a key saves merchants from failures leading to errors generated by the delivery organization.

Purchase cost only

Consumers have restrictions on their chargeback volume. When a customer files a chargeback, it can be accomplished for the complete amount of the online payment or an incomplete amount. But the complete amount of the chargeback can never surpass the actual online payment amount. Whether it’s a one-time chargeback or incomplete chargebacks counted together, they can’t surpass the exact online payment amount.

Yet, there might be an abnormality to this if the online payment was conducted in foreign currency, and the exchange volume has changed since the buy was performed.

15-day waiting span on returns

Issuers require to wait 15 days period from the day the buyer replaced an object before consenting to a chargeback. The abnormality is when the 15-days period will surpass the chargeback filing time limit. This interface delivers merchants more duration to submit a refund and evade the chargeback concern.

Note that online merchants can ask for product refunds when buyers begin a refund or a credit card chargeback.

No cashback online payments

Another factor you should be familiar with is that chargebacks can’t be delivered for a cashback amount accepted from a debit card online payment.

The privilege of representing a procedure

Competing for a chargeback is one of, if not the most, essential chargeback merchant privileges. You have the freedom to oppose chargebacks, and you require to reply to them properly. If you function with a dedicated payment processor and acquire a reliable high-risk payment gateway, it conceivably delivers tools to get you via the chargeback procedure effortlessly. You will have to fill out a form available in your merchant dashboard and send it by a precise deadline.

Collect as much proof as possible. Ensure you gather detailed information and save online payment documents, everything that could assist you to succeed in the conflict.

Keep in the sense that fighting a chargeback may need a high acquisition of aids, which may be unbeneficial. That is why it is a fine opinion to specify a minimum online payment value that would be valuable to dispute.

Chargeback determination

When the card provider’s judgment is caused in the vogue of the customer, the bank delivers a pre-determination chargeback to the merchant. You can then select whether you like to take the judgment or request the card network to reanalyze the case.

Before selecting to plead a decision, perform a cost-benefit study. It may be more pricey to demand than to reimburse the online payment. Consider again, specifically when you like to ask for pre-determination (reestablish the chargeback). If the price of the procedure surpasses the purchase worth, then it isn’t a sound concept. The pre-determination procedure should be ideal for high-value online payments.


Merchant chargeback privileges can assist you in protecting your online business from serious failures. It’s essential to comprehend your privileges and duties so that you can transmit vigorous notice to scammers and credit card providers that you won’t receive dubious action and that you’re ready to combat.

Comprise a most secure fraud prevention technique in your everyday actions. Always ensure the online payment processor you function with delivers anti-fraud mechanisms with machine learning, AI-based services, and an adequate chargeback fighting mechanism. As per chargeback rules and WebPays, organizations that prefer third-party chargeback administration services can decrease chargeback volume by 19%.

Handling top-quality customer and technical support and robust refund guidelines are also beneficial. Always attempt to speak to your buyers preferably to evade having to battle chargebacks. If your debate isn’t thriving, consider the pros and cons before carrying extra steps.

Opt for WebPays and experience the best payment processing solutions and card-not-present transactions. We also deliver chargeback prevention features with our payment gateway solutions. Our casino merchant account, gambling payment gateway, and forex merchant account platforms are completely secure and support chargeback prevention features. Contact us now and we will fulfill all your business’s payment requirements with a secure and reliable high-risk payment gateway in Europe (Netherlands).

Visa has executed different new rules and regulations to assuring no fraud record. The rules are prepared to immensely improve your payment processing performance by decreasing illegal activities and expanding transparency while eradicating payment processing delays.

In this blog, we have examined the visa rules for improved risk performance. Keep reading to understand more.

Some primary rules of Visa that can prevent risk performance

There are some updated Visa rules so before acquiring any payment gateway provider for credit card processing. So, research all these rules published by Visa.

Table of content

Reduce code management

Founded reduce codes would be restructured into four parts. And providers would be predicted to have the right decline reasons. Merchants who retry to authorize payments after acquiring a clear justification for the reduction would pay more increased prices because of the update.

The four sections are available to decrease apprehension and improve translucency in the payment procedure. The primary cause behind this is when providers offer merchants standard decline reasons that are unbelievable to comprehend. Merchants can reattempt to offer a similar order, leading to increased costs and frustrated customers. Apply now for payment gateway europe.

Approval data structure

Visa’s new rules and regulations are the regularity of approval. And which also took impact on October 1, 2021. The main goal of this industry is to enhance the efficacy of provider-run payment authorization. Visa invented measures for assuring data goodness and decreasing the number of providing consent applications with revised data parts to improve the performance ratio.

As per the new rules and regulations, if you again ask for restricted access with altered data locations after October 1, 2021, Visa will assess you for a fine.


One of the crucial aspects is that, while modifying data fields may assist specific circumstances. So, it is also a destruction of aid and funds for all players affected. Online payments that were the product of fraudulent movements or misplacing would lead to a non-compliance penalty.

Cardholder fraud prevention

As per Visa’s separate study, the deficiency of apparent reduction causes code collection delivers fraudsters with new opportunities. Visa formed suggestions for evading and managing fraud after discovering an increasing tendency of credit card holders to improve fraudulent chargebacks for valid online payments.

Merchants find it unbelievable to observe first-party robbery. And which arrives at a cost to both providers and merchants.


Fraud prevention mechanisms save your online business

The fundamental attribute is that the upgraded rules don’t involve some technological transformations to your interest. Since we will accomplish them for you such that your payment procedure isn’t suffered. Online business with a reputed payment service provider who delivers verified fraud detection mechanisms. And that will assist you to protect your business from internet fraud and decrease rejection volume.

Fraud recognition signifies a comprehensive technique to analyze outcomes, so a multi-stage strategy should be your objective. A single mechanism would not be adequate to assure the business functions. You require to study with your payment provider to notice if it delivers multiple ranges of elements for acquiring and processing payment data.

Why Prefer WebPays?

For providing your customers with the facility of credit card processing, you must acquire a high-risk merchant account from WebPays. WebPays delivers a secure credit card processing solution for merchants by following all the updated laws of Visa. If you opt for WebPays, you will experience top-notch security in your online payment processing and there will be no chance of fraudulent activities in your online business. That can also enhance the performance of your payment processing so that merchants do not have to worry about security. They can only focus on their business sales or making strategies for boosting their business revenue. WebPays also serve other high-risk businesses with its payment processing solutions such as casino merchant account, gambling payment gateway, forex merchant account, etc.

Contact us now to get the most secure payment services with no fear of fraudulent measures. We deliver completely secure high-risk merchant account solutions in Europe (Netherlands) for your online businesses to take online payments securely and effortlessly.