Chargeback penalties are a risk-control measure between you and your members. We monitor your overall chargeback rate.
Chargebacks
Responsibility Boundaries
| Party | Responsibility |
|---|---|
| You | Penalties and risk controls for individual members |
| Us | Your merchant-wide chargeback rate |
We do not determine the penalty you charge an individual member. That is your business decision, and the resulting revenue belongs to you. We monitor your overall chargeback rate. Exceeding the threshold triggers merchant-level controls: alerts, reduced limits, or suspension of sales.
When a Chargeback Occurs
Chargebacks appear in card transaction history (GET /v1/cards/{id}/transactions).
Our ledger treatment is: penalties debit only the member's available balance, never the card balance (funds on the card are physically held upstream; deducting them locally would create an irreconcilable ledger mismatch). If the balance cannot cover the penalty, we record a debt.
Reducing Chargebacks
- Use merchant/MCC lists in spending controls to block high-risk categories
- After a card top-up, wait for the funds-arrived event before increasing the limit; doing so earlier can cause insufficient-funds declines
- Restrict frequent small-value card-testing attempts in your own risk controls