These are the main valid reasons consumers claim chargebacks:

• Failed delivery, and the merchant does not provide Zip with the evidence of product delivery within 10 business days of the request
• The product is not as described, or was significantly damaged on delivery
• The advertised terms and conditions of the sale have not been met

There are also several reasons consumers give that are not valid to claim a chargeback:

• Consumer fraud
• Consumer remorse, more commonly known as buyer's remorse
• Consumer failed to make a repayment to Zip
• Any unreasonable claim made by the consumer
• No thresholds or penalties apply in any of these cases.

Notifications

PPRO will send you an email with any new disputes. The Chargeback and Dispute Process section below shows how you can respond to each case.

Disputes that cannot be resolved in favour of the merchant are debited by a chargeback event in the Payment Gateway. You will receive a report of these chargeback events on a daily basis by SSH File Transfer Protocol (SFTP).

Fees

Once a chargeback is final, assuming the case is resolved in favour of the consumer, the chargeback fee is deducted from your account balance. The chargeback amount is deducted from the balance at the same time.

Time frame

Zip will not initiate a chargeback if the transaction was completed more than 6 months ago.

Once the merchant is notified, they are required to provide a response to PPRO within 10 business days.

Chargeback and Dispute Process

From time to time consumers will contact Zip with complaints about the merchant or a product that they have been sold. In all cases the consumer is referred directly to the merchant to resolve. Generally, the consumer and the merchant resolve the dispute without Zip's involvement.

If the merchant is unresponsive or does not satisfy the consumer, the consumer may escalate the matter to Zip. The consumer must provide all information about their issue and give any supporting evidence. This includes all correspondence from the merchant.

Zip then contact PPRO; we then notify the Payment Service Provider (PSP) or merchant with full details of the consumer dispute/complaint. The merchant must provide a response within 10 business days.

The merchant's response should include all relevant information they have used to assess the consumer’s complaint. In most instances this is proof of delivery. Or the merchant's response can be confirmation that all terms of the sale have been met. In addition there may be confirmation of any offers made to the consumer to resolve the issue.

When Zip receive all the required information, their team reviews the relevant information and makes a decision. They inform all necessary parties of this decision.