Chargeback FAQs

What is the difference between a refund and a chargeback?

A refund is a payment transaction initiated by the merchant. It refers to a specific card operation that allows returning the whole or a part of the transaction amount.

 

A chargeback is initiated by the cardholder and can result in the return of the funds. There is always a chance to try to defend the chargeback by providing compelling evidence. How to respond to a chargeback?

 

Why can a guest request a chargeback if they stayed at my property?

The process of the chargeback aligns with national and European Union consumer legislation.

Consumers who have used a payment card to purchase goods or services may be entitled to be reimbursed by a chargeback procedure through the card-issuing bank as per the legislation of the European Commission.

Directive 2007/64/EC on payment services in the internal market (PSD) and Directive 2008/48/EC on credit agreements for consumers (CCD) form the main legal bases to request a chargeback in the following cases:

 

• The transaction is not authorized by the consumer/cardholder.
• The trader does not respect the consumer's rights.
• Bankruptcy.

 

I had all the rights to charge the card. Why is the issuer on the cardholder's side and why is it so easy for them to request a chargeback?

The chargeback process is relatively simple for cardholders, generally requiring only a phone call, email, or filling in the dispute form and a reason for the dispute. It’s the cardholder's word against the merchant’s, and the system is set up to protect cardholders, not businesses.

 

How do I know if I have received a chargeback?

Once the bank initiates the chargeback, the property is notified to the email that is set up as a chargeback notification email in the Mews Payments Integration.

 

If the property has the Create chargeback task enabled, it is visible in the Task section in Mews Operations.

 

Where can I set up or change the chargeback notification email?

To set up or change the chargeback notification email, first make sure you have Admin user rights. Then follow these steps:

 

1. Navigate to Main Menu > Marketplace
2. Go to My subscriptions
3. Find your Merchant Integration and click on Edit
4. Enter an email address to the Chargeback notification email.
5. Click Save.

 

Is it possible to have two or more email addresses to notify us about chargebacks?

It is not possible to have two or more emails to be notified, but there are two alternatives:

 

• Create a mailing group as one address and set up the notifications to be sent there.

• Set up in your inbox a forwarding rule to any other address.

 

Why did Mews deduct the disputed amount from us if there is no outcome about the chargeback yet? 

The flow of the dispute is the following:

 

1. The client disputes the transaction with their bank.
2. The bank requests more information from the Payment Gateway provider about the transaction and deducts the charged amount from them.
3. The Payment Gateway provider notifies the property about the chargeback and deducts money from Mews.
4. Mews deducts money from the Hotel to cover what the Payment Gateway provider deducted from the Mews account.

 

Once the dispute is opened and the funds have been deducted, the merchant has the opportunity to submit evidence to prove the charge was legitimate and potentially overturn the dispute.

 

Why is the chargeback amount higher or lower than the originally charged transaction? 

The amount of the chargeback can differ in the following cases:

 

• The cardholder claimed a partial chargeback rather than the full amount.
• A currency exchange difference, e.g., the customer was charged in EUR and their bank account has default currency USD. The cardholder files the dispute in USD, and it is converted to EUR as per the issuing bank exchange rate.

What are the possible outcomes of the dispute process?

You win the case: you receive the disputed amount back with your next payout plus a 15 EUR dispute process fee that was deducted when the chargeback was received.

 

You lose the case: it stays as it is, and no amount is returned to your account.

 

Why are we charged 15 EUR for the chargeback?

The 15 EUR represent the fee for the dispute process itself and is charged by the issuing banks. Every time the banks start the dispute process, the fee is charged. These fees are meant to cover the administrative costs associated with the chargeback process. On average, the fees typically fall somewhere between 22 EUR and 55 EUR, but the fixed fee the merchant charges us is 15 EUR and it is mentioned in the Corporate Agreement.

 

What if the customer agrees to cancel and withdraw their dispute?

To start the withdrawal process for a dispute, the customer must notify their bank that they wish to withdraw or drop the dispute.

 

The bank should provide the cardholder with a letter of withdrawal, typically via mail within seven business days. If they don’t receive a physical letter, the customer should get a notification electronically either via email or in their associated banking account online.

 

Provide Mews Risk Team ([email protected]) with that letter as soon as possible so they forward it to the merchant provider on your behalf and the case can be closed in your favor.

 

I agree with the customer's claim. How should I proceed?

Let the Risk Team know ([email protected]) that you are accepting the dispute.

 

Can I cancel the chargeback and refund the cardholder without being involved in the dispute process?

No, once the chargeback was created the dispute process started. The only way to refund the cardholder is to accept the chargeback.

 

Can I add additional documents to the already submitted evidence?

Evidence can only be submitted once, and nothing can be added to already submitted evidence.

 

How long does it take for the bank to decide on the chargeback dispute?

The bank decides between 60-75 days after the evidence due date. The decision is the bank’s alone, and the outcome is final.

 

How am I notified about the bank’s decision?

Notification with the outcome is sent to the chargeback notification email as per your setup.

 

Can I challenge a lost chargeback?

 

Mews does not offer the option to open an arbitration case after the chargeback was marked as "lost".

 

Although the payment gateway provider (Stripe/Adyen) is responsible for passing on the evidence you submitted against the dispute, the dispute process, including the outcome, is managed entirely by the bank. The bank's decision is final and cannot be appealed or challenged.

 

What does it mean if I receive a second chargeback after winning the case? (for Adyen users)

 

This means that you can no longer provide additional documentation at this stage and the final status of the dispute is "lost".

 

 

I received a chargeback for a virtual credit card from an OTA. How should we proceed? 

When you receive a chargeback on a VCC, it's best to contact the OTA and try to resolve the dispute with them directly. Virtual credit card chargebacks mean that the OTA refunded the guest and is for some reason claiming money back from you.

 

Can we extend the deadline for the chargeback evidence submission?

Mews sets the 48-hour deadline, as banks set up an evidence upload deadline between 7 and 21 days, but they can change it at any time. This is why Mews needs you to follow up as soon as possible, in order not to miss any deadline.

 

Can I get more details on why the bank declined the evidence we provided?

It is possible in some cases. Please reach out to the Mews Risk Team ([email protected]) for more information on the lost claim.

 

How should I handle a SEPA dispute?

SEPA disputes are final. You cannot reverse SEPA disputes or appeal them. To resolve the issue, contact the customer directly and arrange an alternative payment method.

 

To learn more about payment disputes, consult the help article: Timeline of a payment dispute