What is a chargeback?
A chargeback happens when a customer asks their bank to refund a payment made by debit or credit card because they believe the transaction was unauthorised, fraudulent, or that the goods or services weren’t as described.
For example, a customer may:
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Pay a deposit to a clinic but not show up for the appointment.
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Receive an incorrect or damaged product through an online order.
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Claim that an item never arrived.
In these cases, the customer might contact their bank to dispute the charge.
Who handles chargebacks?
Chargebacks are processed by the customer’s bank or card issuer. They collect evidence from the customer’s and business’s sides, and make the final decision.
Please note: Atoa is not involved in the chargeback decision process. Our role is limited to notifying merchants about the claim and collecting supporting documents so that the issuer bank or card network can review them.
How does the chargeback process work?
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The customer contacts their bank to raise a chargeback claim.
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The merchant/business receives an automated email from Atoa about the claim.
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The merchant/business replies to that email with any documents or proof to support their case (such as receipts, communication records, delivery proof, etc.).
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Atoa submits these documents for review.
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The customer’s bank then reviews all the evidence and decides whether the claim is valid.
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The merchant/business is notified by email as the status changes (e.g. approved, declined, or sent for arbitration).
How long does the process take?
The full chargeback process can take up to 8 weeks, depending on how quickly the customer’s bank reviews the claim. Customers generally have up to 120 days from the date of the transaction to raise a chargeback.
What happens if the merchant loses the chargeback?
If the bank rules in favour of the customer:
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The payment amount remains with the customer.
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The merchant pays a chargeback fee, which will appear on their bill.
What happens if the merchant wins the chargeback?
If the bank rules in favour of the merchant:
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The held funds are released back to the merchant.
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The chargeback fee still applies.
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The customer can still appeal the decision (this appeal stage is known as arbitration). If this happens, additional costs may apply to the merchant.
Can a customer contact Atoa to start a chargeback?
No. Customers must contact their own bank to initiate a chargeback. This is the standard global process. Atoa cannot open or manage chargeback claims directly for customers.