A Glimpse at the Chargeback Process

A chargeback occurs when a payer disputes a credit card transaction and requests a refund. This could happen if the charge is not recognized by the payer, believed to be fraudulent or duplicated. When a payer disputes a charge, a retrieval request is issued by the credit card issuer on behalf of the payer to provide documentation for the disputed transaction.

If the credit card issuer supports the customer, then a chargeback is issued. Billers will then be notified of the chargeback as follows:

Submitters (billers who pass service fees on to their payers)
You’ll receive an email notification once your account has been debited for the amount of the chargeback. The chargeback amount will be netted from the payer’s next deposit, unless there is a separate account for returns.

Information pertaining to the disputed transaction will show in the biller portal within the Chargebacks Report. Further details can be viewed by clicking on the options icon.

Chargeback screenshot

Non-submitters (billers who absorb the service fees)
You’ll receive either an email or fax notification about the chargeback from Merlin, who handles chargebacks for Sage merchants. Questions about chargebacks can be directed to Merlin at 866-637-5467.