Chargeback Process Overview

A chargeback is a process of reversal of funds, initiated by a buyer or issuing bank. 

Chargebacks are processed by the payment service providers all the way. When it receives a request for chargeback from the buyer, it opens and processes the dispute.

Dispute means that a request for a chargeback is being reviewed, and the decision is made whether the request is reasonable or not.

The unreasonable request means that a chargeback process ends in favor of the seller, i.e., no funds will be returned to the buyer.

The reasonable request means that the payment service provider refunds the requested amount to a buyer and charges this amount plus chargeback fee from the seller.

What is the difference between Refunds and Chargebacks?

End users might see no difference between refunds and chargebacks since both of them can result in the return of funds to the customer. Yet, these operations are not alike, and the most noticeable difference between them is the logic of the process.

It should be noted that a chargeback isn’t simply a refund.

Yes, a chargeback could end up in the cardholder’s funds return, but there are additional chargeback fees that the Vendor has to pay. Plus, a chargeback is initiated by the cardholder.

A refund, on the other hand, is initiated by the vendor and represents a single transaction. 

Chargebacks for Vendors

How are chargebacks processed at CopeCart?

All payments at CopeCart (including fees) are processed in a two-step way: 80% of the sum is processed on the 14th day, the rest 20% - on the 40th day. 


The chargeback dispute for €100 is resolved on the 1st of October.  On the 14th of October, 80% of €100 will be charged from Vendor plus 80% of a chargeback fee: 

(80% × €100) + (80% × €15) = €80 + €12 = €92.

The 40th day from chargeback resolve is November 10, and this is when the rest 20% of chargeback sum will be deducted from the Vendor’s account:

(20% × €100) + (20% × €15) = €20 + €3 = €23.

What fees apply to chargebacks?

There exists an additional chargeback fee charged for handling the chargeback request. Its amount depends on the payment service provider.

How often do chargebacks happen?

They are very rare. Almost all buyers’ requests that may arise are fulfilled with refunds.

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