Chargeback Recording - Handling Credit Card Disputes

When a customer disputes a credit card charge with their bank and the bank reverses the payment, this is called a chargeback. The Chargeback tool records this event in the account's financial history so that your records reflect the reversal.

What Happens During a Chargeback

A chargeback occurs outside of your system — the customer's bank contacts the payment processor and reverses the charge. The Chargeback tool does not initiate a refund; it records the fact that a chargeback has already occurred so your account records are accurate.

Recording a Chargeback

To record a chargeback:

1. Navigate to Tools > Chargeback in the Ecommerce portal

2. Select the Account from the dropdown

3. Select the Paid Order that was charged back

   Only paid orders are shown in this dropdown. Orders that have already been returned or refunded are excluded since a chargeback cannot apply to an already-reversed order.

4. Enter the Chargeback Reason — this text is saved to the account history for your records. It is not visible to the customer.

5. Click the Chargeback button

The description reads: "When a chargeback occurs, use this tool to reflect that change in your accounts."

What the System Records

When a chargeback is recorded:

• The chargeback date is set on the order record
• A return order is created to reverse the original charge
• The account balance is updated to reflect the reversed payment
• The chargeback appears in the account's transaction history

Viewing Chargeback History

After recording a chargeback, it can be seen in several places:

• Purchases tab — the original order shows "(Charged Back)" in its status
• Transactions tab — the reversal transaction appears in the account's transaction history
• The order record itself includes the chargeback date

Chargeback vs Refund

• A chargeback records a bank-initiated reversal that has already happened. You are documenting an external event.
• A refund is an administrator-initiated reversal that processes a refund through the payment processor. You are initiating the return of funds.

Use the Chargeback tool when the bank has already reversed the charge. Use the Refund tool when you are voluntarily returning money to the customer.

Tips

• Record chargebacks promptly to keep account balances accurate
• The Chargeback Reason field is for internal documentation — include details such as the dispute reason code from the processor if available
• Review the account after recording a chargeback to determine if any follow-up action is needed, such as contacting the customer or closing the account