Customer iniciates a Chargeback -> Acquirer notifies LocalPayment of a new chargeback -> Localpayment notifies Merchant

A Chargeback is the act of a customer filing for the return of their funds directly with the bank, that can happen for different reasons.

At your request, the responsible bank requests a refund on behalf of the holder. When this occurs, the Acquirer notifies Localpayment of the new chargeback.


Once the Acquirer notification is received, another notification is sent via our callback notification service to the merchant.

To do so, it's key to set up properly the Chargeback callbacks in the platform. Only callbacks notification are sent in order to facilite the chargeback tracking.

After that, it is possible to Complete or Dispute the chargeback.

You have 7 days since the notification is received to respond the chargeback, if we do not receive your response the chargeback will be completed automatically.

To carry out this process through our API you can use the following methods:

pageSend documentationpageClose Chargeback

Evidence required to initiate a dispute

Below are the suggested evidences to dispute a chargeback according to the type of service:

  • Evidence (for example, photographs or emails) to prove a link between the person receiving products and the cardholder, or proving that the cardholder disputing the transaction is in possession of the products.

  • Evidence that the person who signed for the products was authorized to sign for—or is known by—the cardholder. If the products were collected from a physical location, you should provide:

    • Cardholder signature on the pickup form

    • A copy of identification presented by the cardholder

    • Details of identification presented by the cardholder

  • The address you shipped a physical product to. The shipping address must match a billing address verified with AVS or be the address of a business that’s connected to the legitimate cardholder in some way.

  • Documentation showing the product was shipped to the cardholder at the same address the cardholder provided to you. This should ideally include a copy of the shipment receipt or label, and show the full shipping address of the cardholder.

  • The date that a physical product began its route to the shipping address in a clear, human-readable format. This date is prior to the date of the dispute.

  • The delivery service that shipped a physical product, such as Fedex, UPS, USPS, and so on. If multiple carriers were used for this purchase, separate them with commas.

  • The tracking number for a physical product, obtained from the delivery service. If multiple tracking numbers were generated for this purchase, separate them with commas. When Stripe compiles your evidence into a single document, these tracking numbers are expanded to include detailed delivery information from the carrier.

  • Any argument invalidating the dispute reason, such as a PDF or screenshot showing:

    • A signed order form for products purchased by mail or phone order

    • Evidence that the transaction was completed by a member of the cardholder’s family or household

    • Evidence of one or more non-disputed payments on the same card

    • Evidence that payments on the same card had been disputed as fraud prior to the issuer authorizing this transaction

    • Evidence that the card’s CVC value was presented at purchase, but the issuer either authorized the charge despite the check failing (cvc_check value of fail), or didn’t verify it in the first place (cvc_check value of unchecked).

    • For recurring payments, evidence of a legally binding contract held between your business and the cardholder, that the cardholder is using the products, and of any previous payments not disputed.

    • Whether you already issued the refund the cardholder is entitled to

    • Whether the cardholder withdrew the dispute

Chargeback statuses

  • Received: Chargeback starts with this status. No dispute documentation was provided so far.

  • DocReceived: You (the merchant) provided supporting documentation within the due time frame

  • InDispute: the documentation is sent to acquirer

  • Complete (close the chargeback).

If dispute documentation was submitted ('In dispute' status in the prior phase), chargeback status -after resolution- can be

  • DisputeLost: Provided dispute-documentation wasn’t enough to reverse Chargeback. Chargeback remains settled with issued debit note.

  • DisputeWon: Provided dispute-documentation was successful to revert chargeback. Credit note for the same amount is issued to you (the merchant).

As soon as the chargeback status changes, a callback notification is sent.

How the Chargeback affects the balance

Once the Acquire has notified the chargeback request, a new Chargeback transaction that reserves the original Payin value until the situation is defined. In case the dispute is won, the funds will be returned to the account with a new Chargeback type transaction.

Full flow and its statuses

To carry out this process through our frontend you can use the following steps:

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