Ecommerce Chargeback Process

Chargebacks are a demand by a customers financial institution, for a retailer to reimburse for the loss on a fraudulent or disputed transaction, raised by the card holder. 

As the merchant provider, SportsTG (STG) are contacted directly by the customers financial institution regarding chargebacks. 

There are 2 types of chargebacks received: 

1. Disputed transaction 

2. Fraudulent order placed using stolen credit card details 
 

Disputed Transaction chargeback process: 

  • Every Friday STG will email you the disputed transaction details
  • You are to contact the customer directly and verify that the order is legitimate/resolve the dispute 
  • Once resolved with the customer, contact the Ecommerce Manager with order details to advise dispute has been resolved with the customer 
  • STG finance will then advise the financial institution to close the dispute


Fraudulent Transaction chargeback process: 

  • The financial institution opens up an investigation and contacts the merchant who processed the order (STG)
  • STG finance verifies via database and financial institution records if the order is fraudulent and provides data to financial institution. 
  • Once confirmed as fraud, the financial institution deducts the funds for the fraud order instantly from the merchant (STG)
  • The bank credits the customer's account for the fraud order
  • Our finance team contacts clubs individually with an invoice for the funds of the fraud orders + $25 chargeback fee

Please note:

  • Customers have up to 4 months to raise a disputed or fraudulent transaction with their financial institution 
  • Once confirmed as fraud, it can take the bank another 2 months to process the order as fraud and deduct the funds from the merchant account (STG) 
  • As soon as the bank confirms the order as fraud and the funds are withdrawn, STG will notify all clients immediately. 

How to prevent chargebacks:

Integrating with Kount as our fraud protection service, has dramatically reduced fraud orders across all of our clients.

However fraud can't be eliminated 100%. Kount can only gaurantee 99% protection from fraud. 

We suggest for all international orders, to double check these to ensure they are legitimate via the following steps, see article: Fraudulent Transactions

All fraud orders that are shipped, are at the expense of the club.