Handle international chargebacks

Learn what to expect when a customer files a chargeback.

What you need to know about chargebacks 

With Checkout Zonos offers fraud coverage to mitigate risks from fraudulent chargebacks.

• Unauthorized chargebacks never hit your account.
• Zonos handles chargebacks directly, so you do not have to.
• Most chargebacks incur a 25 USD fee. The fee structure depends on the processor:
  • Zonos Payments uses Stripe, which takes the fee as soon as the chargeback is initiated. The fee applies to all chargebacks, won or lost.
  • PayPal goes through Zonos' PayPal account. We only take the fee if the chargeback is lost. If the chargeback is won, no fee is taken.

What is covered 

With Checkout, you get to use Zonos' fraud coverage, which covers any unauthorized or fraudulent chargebacks that may occur. This means that even if the chargeback is lost, Zonos will pay the cost. Examples of this include:

• Unauthorized transactions
• Fraudulent chargebacks
• FX complaints

Zonos may reach out to you to request documents needed to fight the chargeback. Zonos' fraud coverage is void if you do not provide dispute documents by the requested deadline.

What is not covered 

Zonos' fraud coverage does not cover chargebacks that have to do with the product itself. With Checkout, Zonos will still handle fighting the chargeback for you, even when the chargeback type is not covered. However, this means that if lost, you will be responsible for the amount that is refunded to the customer. Examples of when you are responsible for lost chargebacks include:

• Item not received
• Not as described
• Damaged/defective
• Lost in transit
• ‘Friendly Fraud’

Chargeback process 

Chargebacks via Zonos Payments follow this process:

1. Dispute is entered: A customer disputes a charge on their bank account.
2. Charge is reversed: Stripe automatically pulls the funds when a chargeback is submitted. If the chargeback is won (in step 4), they will return the funds to you, the retailer.
3. Fight chargeback: Zonos will submit evidence and fight the chargeback for you. We may ask you for supporting documents during this time.
4. Decision is made: The bank will review the evidence and decide to either side with the customer (give the customer the funds they took in step 2) or side with you (return the funds to you).