This guide explains how credit card chargebacks are initiated by cardholders, how ACTIVE Network defends disputes on your behalf, and how pending chargebacks restrict specific order modifications within your system.
What is a chargeback?
A chargeback refers to a transaction reversal initiated by the cardholder’s issuing bank or creditor. It occurs when your customer disputes a transaction with their issuing bank or creditor for one of the following reasons:
What does ACTIVE Network do when a chargeback is initiated?
When ACTIVE Network receives dispute documentation from our Payment Processor our team provides supporting documentation back to the issuing bank on our client's behalf. Chargebacks can be complex and can be issued for a variety of reasons requiring varying paperwork, so we dedicate a team to responding to and refuting chargebacks. ACTIVE Network provides compelling evidence to disprove any fraudulent activity associated with the transaction. If the issuing bank deems the evidence enough to overturn the card holder’s dispute, the funds are returned to the merchant. ACTIVE Network sees a high success rate during these credit card disputes, wherein the disputed charge is reversed and the cardholder has agreed to pay the amount owed.
What happens if a chargeback is lost?
If the cardholder opts to continue to dispute a transaction after supporting documentation has been provided to substantiate the charge, and their issuing bank sides with the cardholder by refunding the amount back to the cardholder's card, no further actions can be taken by ACTIVE Network or the Payment Processor. At this point, the transaction will be reversed in your database the day after a confirmed chargeback loss, and your Active Account Statement will reflect the chargeback amount and order number for reference.
Your organization may then determine the next best steps, such as contacting the customer directly for alternative payment or canceling their registration if the event has not yet occurred.
Note: If you would like to receive next-day email notifications when a customer submits a chargeback, please contact our Account Management team to be added to the distribution list
Can I edit a pending chargeback order?
Registration or membership orders with a pending credit card chargeback are now flagged with a This order has a pending chargeback message:
For an order with a pending chargeback, refund is restricted in the following workflows:
If an agency user attempts to issue a refund, it is recommended to check with your customer/cardholder to confirm the chargeback request.
What is a chargeback?
A chargeback refers to a transaction reversal initiated by the cardholder’s issuing bank or creditor. It occurs when your customer disputes a transaction with their issuing bank or creditor for one of the following reasons:
- Customer does not recognize charge on their credit card
- Duplicate charge on their account
- Charge is deemed fraudulent
- Customer never received the services/merchandise
- A recurring charge does not stop after cancellation completed
- Customer is not satisfied with services that were rendered
What does ACTIVE Network do when a chargeback is initiated?
When ACTIVE Network receives dispute documentation from our Payment Processor our team provides supporting documentation back to the issuing bank on our client's behalf. Chargebacks can be complex and can be issued for a variety of reasons requiring varying paperwork, so we dedicate a team to responding to and refuting chargebacks. ACTIVE Network provides compelling evidence to disprove any fraudulent activity associated with the transaction. If the issuing bank deems the evidence enough to overturn the card holder’s dispute, the funds are returned to the merchant. ACTIVE Network sees a high success rate during these credit card disputes, wherein the disputed charge is reversed and the cardholder has agreed to pay the amount owed.
What happens if a chargeback is lost?
If the cardholder opts to continue to dispute a transaction after supporting documentation has been provided to substantiate the charge, and their issuing bank sides with the cardholder by refunding the amount back to the cardholder's card, no further actions can be taken by ACTIVE Network or the Payment Processor. At this point, the transaction will be reversed in your database the day after a confirmed chargeback loss, and your Active Account Statement will reflect the chargeback amount and order number for reference.
Your organization may then determine the next best steps, such as contacting the customer directly for alternative payment or canceling their registration if the event has not yet occurred.
Note: If you would like to receive next-day email notifications when a customer submits a chargeback, please contact our Account Management team to be added to the distribution list
Can I edit a pending chargeback order?
Registration or membership orders with a pending credit card chargeback are now flagged with a This order has a pending chargeback message:
For an order with a pending chargeback, refund is restricted in the following workflows:
- Apply discount dropdown > Apply a coupon or Add other discount
- Actions dropdown > Edit purchases or Transfer or Add other discount or Cancel
- View transactions link > Adjust payment button
If an agency user attempts to issue a refund, it is recommended to check with your customer/cardholder to confirm the chargeback request.
