Chargeback Management

What is a Chargeback?

A chargeback is a claim initiated by a customer through their issuing bank due to a transaction they find problematic, such as unauthorized payments, incorrect amounts, or merchant disputes.

In Yuno, a chargeback and a dispute are technically the same—they both represent a contested transaction.
The conceptual difference lies in the merchant's response: when a merchant provides documentation to contest the chargeback, it becomes an active dispute. However, the transaction remains the same, and only its state evolves based on the actions taken.

Chargeback Workflow

1. Chargeback Creation

   • The customer raises a claim with their issuing bank.
   • The bank notifies the payment provider.
   • The provider informs Yuno about the claim.
   • Yuno logs the chargeback as a transaction (CREATED).

2. Merchant Notification

   • Yuno notifies the merchant about the chargeback and updates the payment's status.

3. Merchant Actions

   • The merchant can:
     • Submit evidence: Provide documentation supporting the validity of the transaction, turning the chargeback into an active dispute.
     • Accept the chargeback: Acknowledge the claim without disputing it and loose the funds (LOST).

4. Evidence Review

   • If evidence is submitted, the issuing bank reviews the documentation and issues a final decision (PENDING_REVIEW).

5. Chargeback/Dispute Resolution

   • Dispute Won (WON): The customer's claim is rejected, and the transaction remains valid.
   • Dispute Lost (LOST): The customer's claim is accepted, resulting in a refund to the customer.

Chargeback States

The states of chargebacks in Yuno represent the various stages of the process:

Understand the reason code

Understanding the reason code behind each chargeback is crucial, as it explains why the customer initiated the dispute. Familiarity with these codes allows you to tailor your response more effectively and gather the necessary information for each case. In the Chargeback Reason Codes section, you can find a comprehensive list of all possible codes provided by acquirers. In each chargeback transaction you'll be able to find the reason code in the response_code field.

Evidence Management

To dispute a chargeback, the merchant must submit evidence supporting their case. In the context of dispute resolution services, evidence refers to any information or documentation that substantiates your position in a disagreement or claim. Providing compelling evidence is crucial for achieving a favorable outcome. Examples of such evidence include:

• Proof of delivery: Documents confirming that a product was shipped and received by the customer, such as tracking numbers or delivery confirmations.
• Customer communications: Records of emails, text messages, or any exchanges that demonstrate agreements or clarifications made with the customer.
• Refund and return policies: Copies of the policies that the customer agreed to at the time of purchase, outlining the conditions for returns or refunds.
• Proof of authenticity: Documentation verifying the legitimacy of a transaction, like signed receipts or authentication records.

It's essential that the evidence presented is clear, relevant, and directly pertains to the issue at hand. Additionally, organizing and presenting the evidence professionally and concisely will aid in its assessment by the parties involved in resolving the dispute.

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Evidence requirements

The uploaded files must meet the following criteria:

• Format: File must be in PDF format, encoded as base64.
• Size: File must be no larger than 1 MB in size.
• Language: Dispute should be written in English or the country’s local language.

Example Request to Submit Evidence

POST https://api-sandbox.y.uno/v1/payments/:payment_id/transactions/:transaction_id/dispute

Headers:
  X-Idempotency-Key: <unique-key>
  X-Public-Api-Key: <api-key>
  X-Private-Secret-Key: <secret-key>

Body:
{
  "account_id":"<Your Yuno account_id>",
  "evidence": [
    {
      "file_name": "signed_receipt.pdf",
      "content_type": "application/pdf",
      "content_category": "RECEIPT",
      "content": "JVBERi0xLjMKJcTl8uXrp/Og0MT..."
    }
  ]
}

 

Please refer to the Disputes API reference section for more information.