First Objection: Step-by-Step Guide
1. Our acquiring bank partners notifies us of a chargeback and our systems are updated accordingly.
2. We notify you of the dispute via email: If you wish to object to the chargeback, relevant evidence against the dispute of your client needs to be provided in order to prepare the chargeback representment. We request supporting information/ evidence such as:
- Customer details
- Order information
- Delivery information etc
3. We will represent the chargeback within the timeframes applied by our acquiring bank partners. We represent the chargeback based on the information received. Please be aware that we only have a limited time frame to do so.
Please note, if you receive a chargeback notification the administration fee of 10 GBP/EUR is applied regardless of the outcome. This fee is non-refundable.
4. If the Chargeback is won,
- The merchant will be reimbursed (via bank transfer) once the 60 days from the date of reversal for the Chargeback have passed.
- The merchant does not need to claim the amount from the customer. In general, chargebacks are received for transactions which have already been paid out to the merchant and therefore, the initial loss is covered by SumUp.
5. In the rare event that the chargeback contestation is lost, we will deduct the chargeback amount from the merchant’s account plus the administration fee chargeback fee of 10 GBP/EUR.
Should this be the case, we encourage the merchant to contact the customer directly in order to settle the payment by an alternative method.
What happens after the first objection?
SumUp hold the money for 60 days. As mentioned above, if the chargeback is reversed we will wait for 60 days before reimbursing the merchant as the cardholder (client of the merchant) has the option to review the representation and refuse it.
- If no further dispute occurs within 60 days and SumUp's representation still stands, we will reimburse the merchant for any deduction applied to their payout minus the chargeback fee, which is non-refundable.
- If another dispute occurs within 60 days, we will request further information from the merchant. If the transaction is charged back for the second time (meaning that the cardholder does not accept the provided representation and wants to continue with the dispute) we will notify the merchant via email. In such cases, it is not advisable to continue with the representation, unless the merchant can provide indisputable proof to present to the cardholder’s bank.
What is a Chargeback Reversal?
A chargeback reversal is a notice that the chargeback representment submitted to an issuer has been reversed and a temporary credit has been issued to the merchant account. This indicates you have won a second representment or a chargeback. However, the credit may only be temporary as the cardholder has additional dispute rights and may push the dispute to arbitration.