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Spektrix Payments Dispute Process

Dave Carr
Dave Carr
  • Updated

In this article you’ll learn about the Dispute Process in Spektrix Payments. This article is for users of Spektrix Payments powered by Adyen.

 

What is a Dispute?

A Dispute occurs when a cardholder contests a transaction where money has been taken from their account. The cardholder would usually contact their bank or card issuer to dispute the transaction. 

A Dispute is raised when:

  • A transaction is not recognised
  • Charges are incorrect
  • There are issues with a product or service

TIP: A Dispute doesn’t always result in the issuing bank initiating a Chargeback.

For Adyen users, Disputes are categorised under four categories:

  • Fraud
  • Consumer Disputes
  • Processing Errors
  • Authorisation

TIP: Only card payments can be disputed. It isn’t currently possible to dispute transactions made by bank transfer/wire transfer or funds transfer.

 

How will I be informed about a Dispute or Chargeback?

You can set up real-time notifications to receive an email when a Notification of Chargeback, Request for Information or Notification of Fraud is initiated by the card issuer.

Read How will I be notified of a Chargeback for more information.

 

What is the Dispute process in Spektrix Payments?

The dispute process can vary depending on the type of Dispute notification you receive. These notifications are:

The image below shows the flow of a Dispute. The dotted arrows indicate optional steps in the Dispute process:

 

dispute_process.png

 

Notification of Chargeback (NoC)

A Notification of Chargeback means a chargeback has been initiated by the card issuer. This notification may follow a Request for information (RFI). 

If the payment status has changed to Settled or Refunded, the Notification of Chargeback will occur immediately. The Request for Information step will be skipped.

To learn more about managing Chargebacks, take a look at our Spektrix Payments Chargebacks article.

 

Request for Information (RFI)

When a transaction is disputed, you may receive a Request for Information from the card issuer. You may not receive a Request for Information for every dispute. For example, if the card issuer has enough transaction information to proceed.

TIP: This is a notification only and is not a Dispute. At this stage, no money is taken from your Merchant Account.

Once the card issuer has received the information, they may initiate a Chargeback or decide to take no further action.

If you do not respond to the Request for Information in a timely manner, a Chargeback may occur and the disputed amount will be withdrawn from your Merchant Account.

To learn more about responding to a Request for information, take a look at our Spektrix Payments Chargebacks article.

 

Notification of Fraud (NOF)

If a fraudulent transaction takes place in your system, you’ll receive a Notification of Fraud email from Adyen. This email is the equivalent of a Visa TC40 and Mastercard SAFE (System to Avoid Fraud Effectively) report. 

The email will contain the following information:

  • PSP Reference: A unique 16 digit code assigned by Adyen to each transaction. You can use this to search for transactions in your Essentials Dashboard.
  • Merchant Account Code: The code assigned to your Merchant Account
  • Payment Method
  • Amount
  • Reason

You can use this information to view the fraudulent transaction in the Adyen Essentials Dashboard.

TIP: This is a notification only and is not a Dispute. At this stage, no money is taken from your Merchant Account

Once you’ve received the notification, we recommend that you:

TIP: You may want to add a Pop Up Note to the Order or Customer Record to inform your team of fraudulent transactions.

If there is no 3D Secure Liability Shift, the transaction may turn into a Chargeback. To learn more about managing Chargebacks, take a look at our article on Spektrix Payments Chargebacks.

 

3D Secure Liability Shift

A 3D Secure liability shift occurs when the responsibility for fraudulent chargebacks moves from the Merchant (your organisation) to the card issuer during a 3D Secure (3DS) authenticated transaction.

During a 3D Secure transaction, the cardholder is asked to complete authentication using an additional verification step (such as a password or fingerprint). As the transaction has been successfully authenticated, the liability for fraud-related chargebacks shifts away from your organisation.

In the case of fraud, this shift protects your organisation by transferring responsibility for the financial loss to the card issuer. 3D Secure is designed to reduce the exposure to Chargebacks while enhancing payment security.

TIP: The chargeback protection for Visa and Mastercard transactions is valid for 90 days.

WARNING: 3D Secure Liability Shift does not apply to recurring transactions such as Auto Renewable Memberships.

 

Further Reading

For step by step guidance on how to respond to a Dispute, read the following article:

You should now have the information you need to understand the Dispute Process in Spektrix Payments. To learn more about Payments, visit the Manage Payments section of the Support Centre.