Chargebacks

Chargebacks

What Is a Chargeback?

A chargeback is a transaction where funds are returned to a credit card or PayPal account owner once they report an unwanted or potentially fraudulent transaction to the issuer of their credit card or to PayPal.

On SmartWorld (SW), the credit card company, or PayPal, informs SW of the chargeback and may also request more information, such as transaction information, proof of delivery, and proof of refund. SW is required to respond with this requested information directly and timely.

Under what circumstances would a Chargeback be filed?

• Non-Delivery – This can occur when a buyer makes a purchase but does not receive the item or items purchased.
• Fraud - This can occur from unauthorized use of a credit card or PayPal account.
• Not as Described - This can occur once a buyer takes delivery of an item which they determine is different from what was listed on SW, or different from what the buyer thought was being purchased.
• Return - A credit card holder or PayPal account owner can request a chargeback when dissatisfied with an item purchased and received. This can be for one or several reasons, including damage.
• Dissatisfied – If a buyer is dissatisfied with their purchase, they may elect to file a chargeback.

How Will I Know if a Chargeback has been Filed Against Me?

SW receives reports of chargebacks from credit card companies or PayPal or from the issuing bank. An investigation begins directly thereafter.to determine validity of the chargeback. If SW requires additional information to address the dispute, you will be notified via the email address listed on your Vendor Application Form.

Once SW contacts you, you must reply within 3 business days. Failure to do so may result in a refund issued to the buyer. SW will collect the refund amount from your PayPal account or the credit card you have on file. If SW is unable to collect the refund amount from you, your store may be suspended until resolution is reached. If SW can resolve the chargeback on your behalf, or resolve the issue without your involvement, we may do so and never contact you.

If a Refund Is Necessary, How Is It Issued?

When a chargeback is filed against a store, SW conducts its own assessment of the transaction details. In most cases, SW will ask you, the Vendor, to refund the order from your store.

Seller Best Practices for Chargebacks

Although chargebacks cannot always be completely avoided, here are some steps you can take as a seller to help prevent them:

• Provide a reasonable and accurate shipping date (also referred to as “processing time” or “ships-by-date”) using the tools provided by SW, and ship the order accordingly.
• When you ship an order, mark the order as shipped. You should only mark an order as shipped when you actually ship an order to a buyer.
• Provide valid proof of shipping with all orders. Also, be sure to provide proof of delivery for items shipped within the US. Valid proof can include a shipping or tracking number that shows the order route and deliver progress.
• Communicate with the buyer about the status of their order, any questions they might have, and any additional details agreed upon in the transaction.
• Rather than encouraging a buyer to file a chargeback with their credit card company, you and the buyer can work toward a solution. SW is always happy to mediate and assist our community in situations like these.
• Actively participate in the case and respond to all questions posed by both SW Admin and the buyer. Cases require the participation of both the buyer and the seller.
• Respond to SW’s requests for information. Be sure to respond in a timely manner when SW requests information.
• Publish your policies for shipping, returns, exchanges, and custom orders on your store’s Policies page. Also, please be sure that your store policies are in compliance with SW’s Terms and Conditions.

Valid Proof of Shipping

Always use a secure shipping method, with tracking and/or delivery confirmation.

If tracking is attached to an order and it shows attempted delivery to the address on the receipt, we may not contact you at all, and respond to the dispute with the tracking information on your behalf.

If more information is still needed, you will be contacted and will have five (3) days to respond.

Valid proof of shipping can be, but is not limited to:

• A SW Shipping Label.
• A scanned copy of delivery forms or departure information.
• A shipping service receipt or customs form that includes the date of shipment, as well as the name, full address, or zip code of the recipient.
• A valid tracking number showing movement to the address at approximately the agreed time.