Chargeback

A chargeback is a card payment reversed by the cardholder’s bank through the card scheme rather than settled with you directly. The money is usually taken back first and argued about afterwards, and the window can run to several months after the sale depending on the reason code. Chargebacks are won or lost on records, not on arguments.

In practice

A chargeback is a dispute raised through the card scheme rather than with you. The money is usually taken back first and argued about afterwards, and the window can run to several months after the sale depending on the reason code and the scheme.

They are won or lost on records. The order, the basket, the payment reference, the authentication result, the delivery or collection timestamps, and any message exchanged with the customer. A system that keeps all of that together produces a defence in minutes; a till roll and a memory produces nothing.

For food the commonest reasons are "did not receive" and "not as described", which is why collection handovers and delivery confirmations are worth recording even though they feel like bureaucracy on a busy night.

Also called: payment dispute, card dispute.

Questions people ask about chargeback

What evidence wins a chargeback?

The order, the basket, the payment reference, the authentication result, the delivery or collection timestamps and any message exchanged with the customer. A system that keeps all of that together produces a defence in minutes. A till roll and a memory produces nothing, which is how most disputes are actually lost.

What are the commonest chargeback reasons in food?

"Did not receive" and "not as described". Both are about what happened at handover rather than at checkout, which is why collection handovers and delivery confirmations are worth recording even though they feel like bureaucracy on a busy night.

How long after a sale can a chargeback arrive?

Longer than most owners expect: the window depends on the scheme and the reason code and can run to several months. That is the practical argument for keeping order records, authentication results and delivery evidence for far longer than the week you would otherwise need them.