Definition:Chargeback is a dispute against a particular transaction raised by the cardholder (end-user) and reported to their card issuing bank. A Chargeback is a provision by banks and card networks such as Visa & MasterCard to protect buyers from unauthorized or fraudulent payments. Once the cardholder files a complaint, the bank reports the same to Mother touch and an investigative procedure is initiated.

There could be several reasons of Chargeback against a particular transaction, but most commonly is associated with unsatisfactory customer service/product or poor service delivery experience. Chargebacks can also be filed if the customer suspects fraudulent activity on their card.

For Merchants’ it is best to avoid any kind of Chargebacks in high volumes as banks and card networks may label your business as a fraudulent/high risk business, hampering their image and present agreement rates. A customer has a timeframe of 180 days to file a Chargeback, which means their sales are reversible for that time period. Furthermore, a high number of Chargebacks may lead to the Banks holding other remittances for the business as well and even a ban of online payment services may be imposed upon the business.

As per our policy, the Merchant’s explicitly agrees that all payments made in respect of any Customer Order, in respect of which the Customer or Issuing Bank raises a claim, demand, dispute or Chargeback on Mother touch or the Facility Providers for any reason whatsoever or in case of refund initiated by the Merchant shall be the financial responsibility of the Merchant. The Chargeback or refund shall be processed as per the set processes of Facility Providers and Mother touch as denoted:

• Raised:

  Once an Issue/Dispute is raised by the customer and Mother touch is intimated of the same via the facility provider, we shall notify our Merchant via e-mail, Mother touch’s merchant panel/telephone about the issue/dispute with the relevant details as provided by the bank regarding the transaction.

• Assess the Chargeback:

  Merchant’s would then be required to assess the dispute and provide a detailed explanation regarding the product/service delivery. If in case the product/service has NOT been provided, the Merchant would be responsible to review the situation and determine if the customer is still willing to accept the product/service delivery. If in case the product/service has been delivered, then the Merchants shall be responsible to share ‘Proof of Delivery’, Invoices and other legally acceptable proofs of product/service delivery via email, Mother touch’s merchant panel.

• Rendering Proofs:

  Once the issue/dispute has been assessed by the Merchant, it is the sole responsibility of the Merchant to timely render all documents regarding the transactions in order to contest the Dispute as Facility Providers generally provide a window of 5 working days to represent the Chargeback. Failure to do so within the specified time frame may result in the Merchant losing the Chargeback

Once the Chargeback is received and the Merchant is ordered to make payment of the Chargeback amount or in case of Refund once the Refund requested is initiated by the Merchant, the Merchant is required to make the payment of the Chargeback/ Refund amount as the case may be without any demur or protest, dispute or delay.

The Merchant shall make the payment of Chargeback amount within 48 hours from the time of receiving the request for making payment of Chargeback and or in case of Refund immediately at time of initiating the refund. The Merchant explicitly agrees that all Refunds and Chargebacks shall be the sole responsibility of the Merchant and Mother touch shall not be liable for any claims or disputes which may arise in connection with such Refunds or Chargebacks to the Merchant or its Merchants.

Mother touch shall have the absolute right to withhold the payment in case of anticipated Chargebacks or excessive chargebacks raised against Merchant. The Merchant futher agrees to indemnify Mother touch in respect of any claims, disputes, penalties, cost and expenses arising directly or indirectly in relation Refunds or Chargebacks for all transaction initiated and instructed through the Merchant’s Site.

If Mother touch and/or the Facility Providers determine that the Merchant and/or its business associates registered with Mother touch are incurring an excessive amount of Chargebacks or Refunds, Mother touch may establish controls or conditions governing the Transactions contemplated under this Terms and Conditions, including without limitation, by

• establishing new processing fees or additional costs,
• by requesting a fixed reserve in an amount reasonably determined by Mother touch to cover anticipated Chargebacks and Refunds
• delaying or suspending pay-outs to Merchant,
• refuse to process any transactions
• adjusting the Chargeback and Refund amount from the Customer Charge payable to Merchant
• imposing penalty amount if any charged by Facility Providers
• charge interest over the Chargeback and Refund amount
• terminating or suspending Mother touch Services.

The Merchant explicitly authorizes Mother touch to debit the Merchant’s current balance amounts with Mother touch to the extent of the aforesaid Chargeback and Refund and any other moneys due to Mother touch by the Merchant. If there is insufficient funds available therein; the Merchant shall within 48 (forty eight) hours on receipt of the e-mail from Mother touch regarding the claim undertakes forthwith without any demur, protest, dispute or delay, to pay to Mother touch, the amount of the Chargeback/dispute/Refund to the extent to which such funds proves inadequate.

Without prejudice to any other of Mother touch’s rights and remedies, in the event that the Merchant does not make any payment to Mother touch by its due time (within 48 hours) or on demand as required, Mother touch shall be entitled to charge interest on such overdue amount upon completion of the said 48 (Forty Eight) hours (as the case may be) until the date of payment in full, at the rate of 3-6 % per month, solely as per Mother touch’s discretion and the Merchant cannot not dispute this.

It is agreed that any claim or dispute arising out of non-payment of Refund / insufficient balance shall be the absolute liability of the Merchant and further the Merchant explicitly indemnifies Mother touch and the Facility Providers against any claims, dispute initiated by any Customers / Facility Provider or any third party / authority enforced on Mother touch, Acquiring Banks/ Card Schemes/etc. for the non-refund of such transactions.

The Merchant explicitly agrees that the refunds initiated by Merchant shall be routed to the original method of payment unless specifically agreed between the Merchant and Customer to credit through an alternate mode. The Merchant hereby confirms that Mother touch has no responsibility if Refunds are processed through alternate mode agreed between Merchant and Customer, however, the Merchant is required to provide a payment settlement proof with the Customer to Mother touch if in case the payment settlement is rendered through a different mode.

The Merchant agrees that TDR charged by Mother touch shall not be refunded by Mother touch irrespective of any Chargeback or Transaction being disputed, rejected or refunded.