How Does Bbot Handle Chargebacks

When a card dispute is opened by a customer with their bank, the following events occur (in order):

  1. The customer’s bank notifies the payment processor (Stripe) of the dispute.
  2. The bank reverses the disputed payment, and also deducts a $15 dispute processing fee from Stripe.
  3. The funds are removed from the merchant’s Stripe account. The debited funds are shown on the Accounting report in the Bbot owner portal. The debit is shown on the day it happens, not the day of the original charge. Thus, debits may appear on days when the merchant was closed.
  4. Details of each disputed charge, including exact time and location of the order, are available in the Chargeback Details Report in the owner portal.
  5. Bbot automatically attempts to dispute each chargeback, by sending "rebuttal" information to the bank (the full receipt for the order, info about the location and exact time, and a general description of how the online orders work)
  6. If the bank accepts the rebuttal and reverses the chargeback, a credit will appear in the Accounting report on the day the credit happens. The $15 processing fee is also returned in this case.
    1. Banks do not provide any information on their process or reasoning.
    2. Unfortunately, most chargebacks are not reversed. The best strategy is to avoid chargebacks before they happen. For example, the Bbot checkout always verifies CVV number and zip code for each card, as an anti-fraud measure. Optionally, the Location Codes screen can be used to set additional required checkout info, such as mobile number. Also, Merchants can help by reminding guests that online orders appear as a separate charge from orders placed in person.

For more information on how Stripes handle disputes and fraud, please visit their website.

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