What is a chargeback?
Chargebacks can be made on credit and debit card payments that you receive.
A chargeback happens when a customer who has made a card payment asks their card issuer (their bank) to recall money that they've paid. The whole process is called a “chargeback dispute”.
The reasons for chargebacks can vary, but include:
Goods or services not being delivered
Goods or services not being as described
Transaction being made with a lost or stolen card
The wrong amount being charged
The customer being charged twice
I have received a chargeback – what happens?
When Wise receives a chargeback against a card payment that you’ve received, we’ll take the amount of the chargeback from your balance. This ensures that if the chargeback is successful, we’re able to pass the funds back to your customer’s card issuer.
If this happens, we’ll contact you to give you full details of the chargeback and ask for some information from you. You have two options:
Accept the chargeback. If the chargeback seems legitimate, you can let us know that you accept it. If you accept the chargeback, you won’t receive the money into your bank account. If we’ve already withdrawn money to cover the chargeback amount, you won’t get this back.
Dispute the chargeback. If you disagree with the chargeback, you'll need to tell us. We'll also need you to provide evidence to support this. For example, you might be able to send us proof of delivery, proof of service, your business terms and conditions, and so on. If you dispute the chargeback, we’ll share the information you give us with your customer’s card issuer. If the dispute is successful, the money will be paid into your account.
If you don’t reply to our request for information, we'll need to accept the chargeback, as we can't defend the chargeback without your help.
Can the chargeback amount vary?
Yes. A chargeback can be made for the total payment amount, or for just part of it.
For example, a customer might make a partial chargeback if some items in their order were fine, but others arrived damaged.
The chargeback amount can also vary for cross-currency transactions, when the exchange rate has changed between the date of the payment and the date of the chargeback.
How long does it take to resolve a chargeback?
The time it takes to resolve a chargeback can vary. This is because both the payer and recipient may need to provide information and evidence about it.
In general, cardholders can raise a chargeback any time up to 120 days after the transaction date.
If you receive a chargeback, you usually have 18-45 days to reply, depending on the card scheme. And if you decide to dispute a chargeback, it can take up to 45 days to learn the outcome.
Do I have to dispute a chargeback?
No. If you agree with the chargeback, you can accept it by replying to the email we sent asking for details.
What happens if I win a chargeback dispute?
If you win a chargeback dispute, you’ll receive payment of the disputed amount into your account.
What happens if I lose a chargeback dispute?
If you lose a chargeback dispute, you won’t receive the money into your bank account. If we’ve already withdrawn money to cover the chargeback amount, you won’t get this back.
Can I lose a chargeback dispute even if I’ve given you extra information?
Yes. When you dispute a chargeback, we'll share the extra information you’ve given us with your customer’s bank so they can review it. They'll decide if the chargeback is valid.