How chargebacks work

A flow chart to show the process of a chargeback. 1. Cardholder files for a chargeback. 2. Merchant choose whether to challenge and provides evidence of the transaction's validity. 3. Issuing bank rules based on available evidence. 4. A second chargeback may occur if the cardholder loses and opts to appeal.
Avoid chargeback fees

Payment providers charge a non-refundable £10 fee for chargebacks. Take precautions to process remote payments securely to avoid chargebacks.

SumUp’s chargeback procedure

  1. Our acquiring bank partner notifies SumUp of a chargeback. We’ll update our systems accordingly and notify you via email.

    • We’ll cover the initial cost of the chargeback so no money will leave your SumUp profile at this point. Instead, the money will be taken from your next scheduled payout.

  2. To object and retrieve the money, submit the relevant evidence required to dispute a chargeback within the time frame set by the acquiring bank.

    • You'll be informed of the deadline. If you miss this deadline, the matter will be considered closed and the cardholder will keep the money.

  3. The issuing bank will attempt to successfully represent the chargeback. In other words, they’ll decide on the validity of the transaction based on the information provided.

    • If the issuing bank rules in favour of the cardholder, the cardholder will keep the money.

    • If the issuing bank rules in your favour, the chargeback will be reversed. But the cardholder still has the right to contest this decision. We’ll hold the funds for 60 days until the appeal period is over and then return your money.

  4. If the cardholder contests the issuing bank’s decision, a second chargeback will begin with the card issuer making the final ruling. We’ll notify you if this is the case.

    • Instances involving Visa, Diner’s Club and Discover allow for more evidence to be submitted to the card issuer before they make a final decision.