When should I apply a credit to the customer for a chargeback request they initiated?

1. We don't recommend applying a credit to the customer as the chargeback process hasn't been completed.
   1. The most likely and ideal outcome is we will be successful and no further action is required.
2. If a credit has been applied to the customer and we win the chargeback, then the credit can be deleted (unless the customer paid again by EFT and a credit is warranted for a double payment).
   1. If the customer has made a payment again by EFT, then you can create a credit and apply to this customer for this case.

To sum it up, here are the relevant information regarding the chargeback process:

1. 1. When a customer requests a chargeback from their card/bank they receive the funds back into their account almost instantly (within 1-2 days) while the chargeback process is run.

   2. We are informed of the chargeback and then we go through our process of verifying the transaction was a valid transaction, we then contact you (merchant) to reach out and ask your customer (buyer) to cancel the chargeback request with their bank if the transaction is proven to be valid.

   3. This process can take weeks and sometimes months before it is finalised.

   4. Once the chargeback is finalised (eg. either successfully challenged or lost) the following happens:

      1. If we are successful 

         There are no changes to the transaction or disbursements and the customer will have the funds automatically taken from their account. No further action required by anyone.

      2. If we lose the chargeback appeal:

         The customer already has their funds and you have the disbursement, so we need to recover the funds from you, and you will then need to recover the funds from the customer.