Chargeback

Customer complaint

• The customer reports to their bank that a charge was unauthorized, the product never arrived, or the item was not as described.

Bank action

• 1. The bank may either refund the customer immediately or 

  2. place the funds on hold, at which point a formal chargeback case is created.

Merchant notification

• The bank or payment processor tells the merchant about the chargeback and often charges them a fee.

Merchant response

• We can either:

  1. Accept the chargeback (money is lost), or

  2. Fight it by submitting proof that the charge was valid (representment).

Final decision

• The bank makes the final call:

  1. Customer keeps the refund, OR

  2. Funds are returned to Konscious.

Since the card issuer is holding the payment (and in some cases may refund it immediately), we’re unable to take any action on the transaction ourselves.

Both the customer and Konscious must wait for the bank’s final decision. Until the case is officially closed and the outcome is reflected on our end, there’s nothing further we can do.

Even if the customer provides documents or information from their bank (such as a letter, email, or phone confirmation), we still have to wait until the bank’s decision is updated in our system before we can proceed.

If the case is still open, all we can do is advise the customer to wait for the bank’s decision to reflect on our end. You can use this macro: [Stripe Refund] Failed Due to Open Dispute.

If the case was decided in the customer’s favor, the bank will refund them directly. No action is required from our end. If the customer insists that they haven’t received the refund, emphasize that they need to contact their bank. You can use this macro: [Refund Request] Chargeback – Customer Favor.

If the case was decided in our favor, it should be reflected on our end before we can take action. As mentioned in the previous slide, the customer may reach out with proof that the case has been decided, but until the decision is reflected on our end (Stripe), we still cannot process the refund. However, if the case decision is already showing on Stripe, please process the refund. You can use this macro: [Refund Request] Chargeback – Konscious Favor.

These are alerts from card issuers informing merchants that a customer disputed a charge.

Unlike traditional chargeback cases, no action is required from the CS team’s end as the refund for these alerts are either processed by Kiri or refunded automatically by the card issuer.