In the PPRO ecosystem, a dispute can progress through several phases, while a chargeback may occur at different points in the dispute lifecycle depending on the payment method's rules.

To determine whether your integration needs to support one or all of the scenarios below, view the details of your supported payment method, for example Afterpay, where it will describe the disputes and chargebacks flow.

Understanding the Timing of a Chargeback

A chargeback represents the actual clawback of funds. Depending on the payment provider, this happens in the following scenarios:

1. Preemptive Chargeback

In this scenario, the financial hit and the dispute notification happen at the exact same time. The provider "claws back" the funds immediately to protect the consumer while the case is being reviewed.

• Example: Card Schemes (Visa/Mastercard)
  The Flow: Dispute Created → Preemptive Chargeback → Evidence Uploaded → Merchant Wins → Chargeback Reversal

• Example: Wero
  The Flow: Dispute Created → Preemptive Chargeback → Evidence Uploaded → Chargeback Reversal → Merchant Loses → Chargeback

  Because Wero is a real-time account-to-account payment, the provider prioritizes returning funds to the consumer immediately while the dispute is evaluated.

2. Post-decision Chargeback

The funds remain with the merchant while the dispute is being contested. The chargeback only occurs if the merchant loses the case or fails to respond.

• Example: Afterpay
  The Flow: Dispute Created → Evidence Uploaded → Provider Review → Merchant Loses → Chargeback.

  In this model, the payment provider holds the "financial hit" until a final determination is made, allowing the merchant to keep their liquidity during the defense process.

3. Settlement-based Chargeback

In this scenario, the funds are clawed back without a dispute being raised.

• Example: SEPA Direct Debit
  The Flow: Chargeback → Dispute Record Created (Status: LOST).

Retrieving chargeback details

1. Receive chargeback or reversal notification

When a chargeback is created or reversed against a dispute (regardless of phase), a CHARGEBACK_CREATED or CHARGEBACK_REVERSAL_CREATED webhook notification is sent to the registered endpoint.

2. Receive chargeback details

Retrieve detailed information about a specific chargeback or reversal, including the reason, amount and transfer status.

API endpoint:

• GET /v1/disputes/{disputeId}/chargebacks/{chargebackId}
• GET /v1/disputes/{disputeId}/chargeback-reversals/{chargebackReversalId}

When to use:

• Immediately after receiving a CHARGEBACK_CREATED or CHARGEBACK_REVERSAL_CREATED webhook
• To check the chargeback details for a dispute

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Important: Chargeback and chargeback reversal details are only available through the dispute itself.