Chargebacks

Chargebacks are a network dispute process (fraud/unauthorized, overcharge, goods not as described, etc.). You typically initiate chargebacks when you and the merchant cannot resolve a dispute directly.

High-level lifecycle

1. Your customer disputes a transaction after which you decide to initiate a chargeback.
2. Open Fabric submits the first presentment to the network. This first presentment will be reflected in an upcoming clearing file with the chargeback instruction.
3. The acquiring bank receives the chargeback and may, by themselves or after consulting with the merchant, either choose to accept the chargeback or to challenge the chargeback (a second presentment).
4. If the chargeback was accepted, you will be credited a refund for the disputed amount via the settlement process. If the chargeback was challenged, the second presentment will be reflected in the clearing file with the chargeback_challenge instruction.
5. After the second presentment, the case may be escalated to the card network for further review and resolution. If the final ruling is in favor of your customer, the next clearing file will contain an instruction indicating the reversal of the second presentment (chargeback_challenge_reversal).

Chargebacks can take weeks (often 45–60 days) to resolve and may involve network fees.

Handling of chargebacks

Chargebacks are managed using the chargeback system of the card network; the outcomes of each step are reflected in the clearing and settlement files.