What is a chargeback?

A chargeback occurs when a customer disputes a charge on their credit card. When this happens, the customer’s bank will reverse the charge and credit the funds back to the customer’s account. This money will be taken directly from your ProPay account. A nonrefundable fee will be automatically assessed to your account if a chargeback occurs. Also, if the chargeback causes your ProPay account to go negative, you will be responsible to cover the negative balance.
 
As the merchant, you are given the opportunity to issue a formal rebuttal to the chargeback.  You can do this by providing any documentation that you have that supports the legitimacy of the original transaction. Once that documentation is submitted, the bank will review it and decide whether or not to honor the original transaction. If they decide that the charge is valid, the funds will be returned to your ProPay account. Otherwise, they will remain in your customer’s account.
 
There are a few steps that can assist in a reduction of chargebacks. Here are a few best practices:

What can you provide to prove that your transaction is valid?

If a chargeback occurs on your account, ProPay’s Resolutions department will contact you with details on how to start the formal rebuttal process. This email will contain a specific list of what you can provide to prove to the bank that your transaction is legitimate. The importance of having the correct documentation in place cannot be stressed enough. Here are a few suggestions of the types of documentation you will want to keep from your sales so you can provide them in case of a chargeback:

 
What now?

Once you receive the email from our Resolutions department, you have 14 days to respond with your documentation. We will submit your documentation for the bank to review. The bank has 60 days to review the documentation and get back to us with their decision.
 

One way that ProPay provides quality payment processing is by ensuring the security of all transactions.  At times, we must do additional verification on certain transactions. When this occurs, we may place a hold on the funds in your account until we are able to verify the transactions in question. You will receive an email from our Resolutions department asking you for as much of the following information as you can provide:

1.  Customer-signed invoice showing total amount charged and listing products or services sold 
2.  Cardholder name
3.  Billing address
4.  Shipping address (if different)
5.  Total amount billed
6.  Last four digits of card
7.  Cardholder phone number
8.  Products or services purchased
9.  How you know this customer or how customer contacted you
10. Tracking number or shipping documentation
 
The Resolutions team will review your documentation and contact you within 1-3 business days.

ProPay is required by law to verify the identity of each new account holder. When our automated system is, for any reason, unable to complete this process our Verifications team must manually verify your information.
 
You will receive an email from the Verifications team requesting additional information. This email will include a copy of the Verifications Form that will need to be physically signed and emailed back to us. You will also need to include a copy of your driver’s license (or any non-expired, government-issued photo ID) and a copy of a voided check with your current address or a copy of your Social Security card. Please return this information to verify@propay.com. If you would like to verify that we received your information successfully, feel free to call customer service at 866-573-0951 and we can assist you. Once your information has been received please allow 1-3 business days for processing.