I received a chargeback on my Braintree control panel, what do I do?

Unfortunately, chargebacks are a standard part of doing business—especially if you accept payments online. There are a number of things you can do to reduce chargebacks, but first, it’s important to know what happens behind the scenes.

  1. A customer disputes a transaction (issues a chargeback) with their bank or card issuer asking for a full or partial refund.
  2. The transaction amount is debited from the merchant’s bank account and goes back to the customer’s bank account.  The associated fees for processing the chargeback are also debited from the merchant’s bank.
  3. The merchant is notified of the chargeback and can choose to either accept the chargeback or dispute it with documentation showing that the transaction was legitimate.  The time allowed to respond is limited so review the required submission date carefully.  If you do not respond by the deadline, the dispute is expired and the buyer will keeps the funds.
  4. If the merchant wins the case, the transaction amount will be returned to their bank account (the associated processing fee will not be refunded); if the merchant loses or accepts the chargeback, the customer will keep the funds.
Please take a moment to catch up on the new rules that apply to VISA chargebacks.

A customer might file a chargeback because they:

  • Didn’t receive their item.
  • Received a damaged or defective item.
  • Don’t recognize a credit card charge.
  • Were charged more than once for something.
  • Didn’t authorize a payment.
In addition to a chargeback, there are some other types of disputes you may receive:

A retrieval is also issued by the customer, but it is just a request for information about an unidentifiable charge. In the event of a retrieval, funds are not removed from the merchant's bank account. The merchant is notified of the retrieval request and they can then respond with the requested information.

A pre-arbitration, or pre-arb, happens when a chargeback is filed, the merchant wins, and then the customer disputes the charge for a second time. While you can dispute pre-arbs, it's been our experience that merchants rarely win these cases without the introduction of new and compelling evidence.

Responding to all credit card chargebacks are handled through your PayPal powered by Braintree control panel. Within the Control Panel you'll have the option to either Accept or Dispute the chargeback.  If disputing you will have the opportunity to provide additional comments and upload documentation to support the dispute.  Please do not refund your customer outside of the chargeback process.  If you have already refunded your customer, click Dispute and provide the transaction ID of the refund you have issued.

Chargebacks, retrievals, and pre-arbitrations
The bank that manages the chargeback or pre-arbitration will charge a non-refundable $15 fee regardless of whether you win the dispute. This fee only applies to chargebacks and pre-arbs; retrievals do not result in a fee at this time. For more information on chargebacks, look here.

To view your open or closed chargebacks:
  1. Open your control panel.
  2. Click Transactions in the top left corner.
  3. Click Disputes.
  4. Choose what options you want in the drop-downs.
If you need to provide additional information about your chargeback, please contact us at PPpbBTMerchantSupport@paypal.com.