How do I read the Chargeback section on my statement?

As a merchant, it's important to understand every part of your monthly statement to ensure transparency and maintain control over your finances. One section that often raises questions is Adjustments/Chargebacks. 

A chargeback occurs when a customer disputes a transaction with their card issuer. This can happen for several reasons, such as unauthorized charges, dissatisfaction with a product or service, or a billing error. When a chargeback is initiated, the disputed amount is temporarily withdrawn from your account and listed as an adjustment on your statement.

Below you’ll find a sample entry:

• Date: 02/08/24
• Description: ADJUSTMENT
• Amount: $22.00
• Total: $22.00

This means that on February 8, 2024, an adjustment was made to your account in the amount of $20.20, which was credited due to a chargeback. Adjustments could also be the result of a backbill.

Chargebacks not only affect your revenue but can also impact your standing with payment processors. A high chargeback rate may lead to additional fees or even account restrictions.

• To avoid possible issues, make sure that you review the details of each chargeback to understand the reason
• respond promptly to disputes with supporting documentation
• improve customer service and communication to reduce future disputes
• use fraud prevention tools to minimize unauthorized transactions

You’ll be notified via conventional mail about your chargebacks. You can also view the chargeback details on your merchant portal. For more information, check out our dedicated FAQ below.