A chargeback occurs when a customer disputes a transaction with their bank. The bank notifies Ezypay, requesting documentation to decide whether to refund the customer. The disputed amount is deducted from the merchant's next settlement and returned if the dispute is successfully defended. Visa and Mastercard chargebacks typically favour the customer, but businesses can still pursue payment from customers via other methods.

Get started

Chargebacks are processed automatically without merchant intervention. Utilize webhooks to receive notifications when a chargeback occurs and to track its outcomes effectively.

Scenario	What Happens Next	Invoice Status	Credit Note Status	Webhook events triggered
Chargeback received	Disputed amount deducted from merchant's next settlement	`PAID`>`PAST_DUE`	N/A >`PAID`	`credit_note_paid` `invoice_past_due`
Won the chargeback	Disputed amount is credited to merchant's next settlement	`PAST_DUE`>`PAID`	`PAID`>`FAILED`	`invoice_paid` `credit_note_failed`
Lost the chargeback	No further changes, Invoice remains `PAST_DUE`	`PAST_DUE`>`PAST_DUE`	`PAID`>`PAID`	N/A

📘
Note
Use the data.reason field to distinguish credit_note events. For chargebacks, the field will show CHARGEBACK, and for refunds, it will display REFUND.

Best practice

Show chargeback status

Integrators' platforms should display chargeback statuses and outcomes to merchants, providing a holistic view of the invoices. Refer to the status transitions and associated webhooks mentioned above for accurate implementation.