Chargebacks And Your Shop

What is a chargeback?
Why would a chargeback be filed?
How does a chargeback get filed against me as a seller?
How will I know there’s been a chargeback filed against me?
If a refund is necessary, how is it issued?
Seller best practices for chargebacks
Valid proof of shipping

What is a chargeback?

A chargeback is the return of the money or credit when an unwanted or incorrect transaction occurs from a credit card. This fund is either returned to the credit card company or PayPal.

On Pilore, the credit card company or PayPal tells us about the chargeback and can ask for more information like transaction amount, delivery, and refund proof of any sort. Pilore has to respond to this request as quickly as possible.

Why would a chargeback be filed?

Fraud – This is when a credit card owner claims that they did not authorize any transaction from their card. It happens when the credit card number is used by someone who does not own it or does not have permission to use it.

Non-Delivery – This happens when a buyer does not receive the ordered product even after paying for it and passing through all purchasing steps.

Not as Described – In this case, a buyer receives the ordered product, but it is not exactly what was described in the listing of Pilore.

Return – A credit card owner can request a chargeback if they are not satisfied with the product they purchased. This dissatisfaction can be because of multiple reasons, like a damaged product.

How does a chargeback get filed against me as a seller?

A credit card owner can contact their credit card company or PayPal and request a refund of the transaction with the above-mentioned reasons.

How will I know there’s been a chargeback filed against me?

Pilore gets reports of chargebacks from credit card issuers like banks, credit card companies, and PayPal. These reports are then investigated for their authenticity and finding a solution to the dispute. If more information is required from your side to resolve the dispute, you will be contacted on the e-mail ID linked with your Pilore account.

Upon contact, you will be given a time limit to respond within it. If you are unable to do so, then Pilore can possibly refund on your behalf, and it can result in the possible suspension of your store. However, if Pilore can resolve the dispute without contacting you, we have the right to do so.

If a refund is necessary, how is it issued?

When a chargeback is filed against a seller, a proper investigation is conducted by Pilore. In most cases, you will be asked to refund the order from your store. However, Pilore also has the right to refund the product on your behalf. In most cases, you will be informed as a seller by Poviga that the refund has been made from your payment account.

Instead of issuing a refund for the order, Pilore debits your payment account. This is because of the restriction that comes in place once a chargeback is initiated. The payment processor puts it in place to ensure that no double refund is done by you and Poviga both.

Seller best practices for chargebacks

Although preventing chargebacks completely is not possible, you can take some steps to prevent it from happening as a seller:

Provide a reasonable date of delivery which you can fulfill by using tools provided by Pilore and ship the order accordingly.
Provide valid proof of shipping along with orders. It can be a tracking or shipping ID that shows the order stages in the transition from source to destination.
Mark an order as shipped only after you have actually shipped the product to the buyer.
Communication is key, so communicate with the buyer about the status of their order. Answer any question they have or discuss additional details that you agreed upon.
Instead of encouraging buyers to file a chargeback through a credit card company, you should utilize Pilore case system to work for a solution. Pilore always helps in assisting its community in every possible way. If you want to know more about starting a case system, read here.
Be active in case discussions with both Pilore and the buyer. Cases need active participation from both parties, i.e., seller and buyer.
Be vigilant in responding to inquiries from Pilore. Your response should be submitted within the given time period.
Ensure that your store page has all the necessary information like shipping, return, and exchange policies. Also, make sure that your store policies align with the site-wide guidelines of Pilore.

Valid proof of shipping

Always use a secure shipping method to ship your products. It should provide a valid tracking or delivery confirmation ID for you or the buyer to track the order in the progress of the delivery.

If further information is required, you will be asked within a timeframe to respond with the answer.

Valid proof of shipping can be in the form of:

A scanned copy of delivery forms or departure information.
A receipt of a shipping order or a custom form that has the date of shipment, name, full address, or zip code of the receiver.
A valid tracking number to track the movement of the order from the departure point to the destination.