What is a chargeback?
A chargeback happens when a cardholder disputes a transaction with their bank and requests a refund. Unlike a standard refund — which you process yourself — a chargeback is initiated by the customer's bank and is outside your direct control.
Why do chargebacks happen?
Chargebacks can occur for several reasons:
Reason | Example |
Suspected fraud | The cardholder doesn't recognise the transaction |
Goods or services not received | An order didn't arrive or a service wasn't delivered |
Goods not as described | The item was faulty or significantly different from what was advertised |
Invalid card used | The card was used before its start date or after its expiry |
No authorisation obtained | The payment was processed without proper card authorisation |
What happens to my money when a chargeback is raised?
This is the most important thing to understand about chargebacks.
As soon as a chargeback is raised, the disputed amount is immediately held and reserved. This means it will not appear in your next payout — the funds are ring-fenced while the dispute is under review.
The hold stays in place until a decision is reached, which typically takes 60 to 90 days.
Where will I see this in Basecamp?
The disputed amount will be reflected as a reduced payout in Basecamp → Reporting → Payouts. If your payout looks lower than expected and you have an open chargeback, this is likely the reason. If you're unsure whether a chargeback is affecting your payout, contact our support team and we'll confirm the details for you.
Are there any additional fees?
No. yetipay does not charge a fee for chargebacks. Only the disputed transaction amount is held — nothing more.
What happens if I win the dispute?
If your dispute is successful, the held funds are released and returned to you in your next available payout. You will be notified by email as soon as we receive the decision from the acquiring bank.
What happens if I lose the dispute?
If the dispute is not successful, the held funds are permanently deducted and returned to the cardholder. The deduction will remain visible in your payout history in Basecamp as a record.
What's the difference between a chargeback and a refund?
| Refund | Chargeback |
Who initiates it | You (the merchant) | The cardholder's bank |
Your control | Full control | Outside your control |
Funds | Returned immediately from your payout | Held pending review (60–90 days) |
Additional fees | None | None |
Can you dispute it? | No | Yes — within 7 days of notification |
What should I do if I receive a chargeback notification?
If you receive a chargeback notification by email, act quickly — you have 7 days to respond with supporting evidence. See our guide: Disputing a chargeback
To reduce your chances of chargebacks in future, see: Tips to help prevent fraud related chargebacks