What are Chargebacks and Retrievals?

Charge-backs are basically disputes reported by a buyer directly to his Bank (Card issuer) against a charge on their statements. Generally buyers file a chargeback when they are unable to recognize the merchants name on their statements and believe the transaction to be fraudulent or when they do not get the promised product or services for which they paid.

Based on the nature of the complaint, the buyer's banks informs the merchant's bank regarding the issue raised by the buyer in the form of a "Retrieval" or a "Chargeback". Merchant's bank then debits the merchants account for the charged back amount and forwards the "Retrieval" or "Chargeback" to the Merchant asking for clarifications or proof of delivery of the product / services.

All sellers who accept credit card payments run the risk of being liable for chargebacks. Chargebacks are among the unfortunate costs of doing business. Many sellers factor this cost into their business risk model.


What happens when a chargeback is filed?

Please provide the required documents as instructed by our compliance team. The disputed transaction amount will be on hold and will be released upon successful representation of Chargeback.


When will we release the held amount?

Once a chargeback is filed Instamojo has the right to hold the funds for 180 days.


For more information, you can check our article here.

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