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.

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A chargeback represents the actual clawback of funds from PPRO. This is different to other dispute management systems where chargebacks are the initiation of a dispute with the intention of funds movement occurring sometime thereafter.

Use cases for the chargeback notifications include settlement and reconciliation. For all other use cases, you should rely on the dispute notifications directly.

Understanding the Timing of a Chargeback

A chargeback represents the actual clawback of funds from PPRO. 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: Brazil local acquiring (cards)
  The Flow: Dispute Created → Preemptive Chargeback → Evidence Uploaded → Merchant Wins → Chargeback Reversal

  Chargeback timing depends on the acquirer, local acquiring in Brazil should support post-decision chargebacks as well.

• 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.

• Example: Brazil local acquiring (cards)
  The Flow: Dispute Created → Evidence Uploaded → Provider Review → Merchant Loses → Chargeback.

  Chargeback timing depends on the acquirer, local acquiring in Brazil should support preemptive chargebacks as well.
  
  Important: From the consumer's perspective, the card networks will always claw back the funds within one or two days regardless of when the card acquirer claws the funds back from PPRO

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 and amount.

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.