Chargeflow Public API is a product for various online payment merchants. It offers an innovative chargeback automation solution to boost your win rate and revenue recovery. Like all other Chargeflow products, our Public API is designed to be incredibly user-friendly, ensuring that engineers can integrate it within a few hours.

Understanding Chargebacks

A chargeback occurs when a cardholder contacts their issuing bank and disputes a transaction due to different reasons, while the popular are:

1. Fraud: The cardholder does not recognize the transaction and claims that he did not do it. Fraud is known in two types:
   1. First-Party Fraud: An invalid chargeback in which the cardholder doesn’t recognize the transaction or leverages the chargeback ecosystem to get free products or services.
   2. Third-Party Fraud: A valid chargeback stating that the original cardholder did not make the transaction and that her card or identity might have been stolen.
2. Product Not Received: The cardholder claims the product or service was not received and that the merchant violated their shipping policy by not delivering it on the agreed timeframe.
3. Product Not as Described: The cardholder claims the product or service is incompatible with the description before the purchase. For example, a buyer can claim that the shirt she ordered was blue, but she got a red one.

The chargeback process typically takes up to three months to resolve. During this period, the buyer receives a temporary refund for the disputed amount, which is withdrawn from the merchant's account. The funds remain in limbo until the chargeback process is completed. Once the process is finalized, the issuing bank decides that if the chargeback is upheld, the funds are permanently withdrawn from the merchant's account and remain with the buyer. If the chargeback is reversed, the funds are returned to the merchant.