What is a chargeback?
If a customer raises a dispute with their bank for a credit card charge it is known as a chargeback.
There can be several different reasons for a chargeback being raised including customers not recognising a transaction on their card, a product or service not being provided or fraud among others.
When IWannaTicket receives a notification of a chargeback from the bank there is a process which is followed which can result in the chargeback either being dismissed and no action taken or upheld and funds being deducted and returned to the customer.
If you are using your own merchant to process sales (eg. Stripe or eWay) any chargeback notifications will come directly to you and it will be up to you to submit the required evidence for the card holder bank to determine if funds should be returned to the card holder.
How does the process work?
When a card holder notifies their bank of a credit card transaction they would like to dispute, the card holders’ bank raises a dispute and lodges this with the merchant. We then receive a notification of the dispute with a set amount of time to provide evidence of the transaction.
The customer is also contacted with details of the disputed transaction, asked to withdraw the dispute if it is a purchase they made and reminded their tickets will be cancelled if the dispute is not cancelled.
Evidence of the transaction including details of the ticket buyers name, email address and what they are purchased are provided through the correct channel which is provided back to the card holder via their own bank. The card holder then lets their bank know if it is a charge they made or not. If the dispute is upheld they receive the funds back and they are debited from the merchant account.
What does this mean for me?
While tickets can be cancelled if a dispute is received before the event, chargebacks are often received after the event as credit card holders have several months to dispute charges.
You are liable for chargebacks as it is if that ticket was never actually sold. Further we act as your agent and are therefore not liable for any losses in respect of the face value of the ticket. As such, we reserve the right to deduct the chargeback amount (and any associated fees) from the ticket sales proceeds to be transferred into your nominated account or if we have already transferred those funds, to invoice you for the chargeback amount, which must be paid with 10 days of receipt of the invoice.
How does IWannaTicket protect me?
While it’s not possible to prevent all chargebacks, IWannaTicket has a range of fraud detection tools built in to the system to identify and cancel potentially fraudulent transactions before your event reducing the risk of chargebacks. These include flagging email addresses and IP addresses associated with fraudulent activity and instant alerts if a payment is attempted with a stolen card or has multiple failed payment attempts with different cards.
If fraudulent activity is detected in sales for one of your events the fraudulent tickets will be cancelled and we will notify you. This is effective in preventing the majority of fraud using stolen credit card numbers.