Challenge Chargebacks FAQ
- Who can use Challenge Chargebacks?
- What evidence is needed to challenge a chargeback?
- How long do I have to challenge a chargeback and how long does the process take?
- What happens if the challenge is successful?
- What happens if the challenge fails?
- Is every chargeback eligible to be challenged?
- Is there any limit on how many chargebacks I can challenge?
- Will my customer know I challenged their chargeback?
- What factors determine whether a chargeback will be successful or not?
Who can use Challenge Chargebacks?
Challenge Chargebacks is a feature of GoCardless Protect+ and is only available in the UK through the Bacs direct debit scheme. If your payments are in another country, this section doesn’t apply to you.
What evidence is needed to challenge a chargeback?
You can find information on how to provide chargeback challenge evidence here.
How long do I have to challenge a chargeback and how long does the process take?
All indemnity claims (chargeback challenges), whether received via the automated system or the paper exceptions process, must be settled within 14 working days of the date of the claim. However, as a merchant, you only have 7 working days from the date the claim was raised to submit evidence to GoCardless, as there are three additional parties that need to process this information:
- GoCardless needs 2 days to review and submit evidence,
- The bank we’re challenging the chargeback with needs 2 days to review and provide a decision.
- The BACS scheme needs 3 days for the payment cycle
In the dashboard, we’ll show a countdown with the final time you must upload information to us by. It’s recommended that you upload evidence in the first 4 working days to give the banks enough time to review the information, and if any follow-up is needed, we have enough time to do so.
What happens if the challenge is successful?
If the challenge is successful we will automatically adjust the payment status back to “Paid Out”, and pay out the funds. You’ll see the challenge status as “Success” in the chargeback challenge dashboard.
What happens if the challenge fails?
If the challenge fails, we’ll update the status of the challenge to “Declined”, and the bank will take the funds from our account. There are no opportunities to appeal challenges.
Is every chargeback eligible to be challenged?
You can challenge any chargeback that shows up on the chargeback challenge dashboard, providing you have acceptable evidence.
Is there any limit on how many chargebacks I can challenge?
There’s no limit currently. GoCardless will regularly review feedback we receive from Banks and Payers which may impact the number of challenges that we submit in the future.
Will my customer know I challenged their chargeback?
Yes, your customer will know. It’s always better for your relationship with your customer to resolve payment disputes with them directly, so you should think of chargeback challenges as a last resort.
What factors determine whether a chargeback will be successful or not?
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Time - was the evidence submitted within the challenge window?
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Quality of evidence - does the evidence provided refute the reason for the chargeback?
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Readability - all evidence ultimately is reviewed by an analyst at a bank. The easier it is to read, the higher the chance of success
More information can be found on submitting the right evidence here.