FAQ: Chargebacks

What is a chargeback and why were the funds deducted from my account?

A chargeback is an action taken by a bank to force a transaction reversal and trigger a dispute resolution process.  Chargebacks are, unfortunately, an unavoidable part of any credit card processing (and are not unique to LivePayments). 

Once a chargeback has been issued, the disputed amount will be withdrawn from your payments account. Disputes are handled with the bidder's bank, so we do not have any specific information on how it will be reviewed. That said, we will be happy to provide guidance along the way. Once a decision has been issued, you will see the disputed amount either returned or remain debited (depending on the result). 

Note: Chargeback notification emails are sent out manually, so there may be a slight delay on weekends and holidays.

Please note that the chargeback process can be quite lengthy, cardholders typically have up to 120 days to file a chargeback and banks can take up to 6 weeks to issue a decision.

What is this chargeback? Why was this dispute filed?

As chargebacks are initiated by the cardholder's bank, we do not have specific information on why the dispute was filed. That said, chargebacks typically have a reason code associated with them. These codes (included in your chargeback notification email) will provide context and signify what information you should include in your chargeback response in order to submit a strong case.

For any chargeback, the best first step is to reach out to the bidder. This will not only help you get a better understanding of the dispute, but your outreach will also serve as evidence of a good faith attempt to resolve the issue. 

What kind of documentation should I submit?

The evidence you submit should be appropriate for the chargeback reason code. In your notification email, you will receive guidance on what specific evidence to submit. Documentation such as email communications, proofs of delivery, tracking numbers, and so on, can all serve to strengthen your response. 

Can I issue a refund?

While a chargeback is active, refunds are disabled to prevent duplicate debits. We can ask our processor to override this measure, but there is a chance that the dispute will still result in a loss (leading to a duplicate debit). Another option is to refund the client via another method (such as Paypal) and we would submit evidence of that refund (again there is still a risk of duplicate debit). 

Otherwise, the simplest solution is to accept liability on the chargeback. This refunds the client and ends the dispute.

Do I get any type of chargeback protection?

Live.Payments provides 100% chargeback coverage on fraudulent credit card transactions and ACH reversals. For non-fraudulent payment chargebacks by bidders, such as those due to damaged or misrepresented items, disputes must be settled between the auction house partner and bidder, while LiveAuctioneers will provide support and assistance.  

To be eligible for coverage, lots must be shipped to the address in the ‘Payment Received’ email sent by LiveAuctioneers. Rerouted shipments are not eligible for chargeback coverage. Please be sure to tell your shipping partners, especially UPS and FedEx, to require a signature upon delivery and to NOT allow changes of address.  

Chargeback coverage is only provided on unauthorized credit card usage (eg., stolen credit card). Chargebacks are not covered when, for example, when lots: 

  • do not arrive
  • are not as described or photographed, and/or
  • are damaged during shipping

For the greatest likelihood of winning a chargeback, please keep the following records for each lot:

  • Pick-up information: date, name, a signature of person or company who picked up the lot, condition report signed by shipping agent at the time of packing (for white glove and packing services)
  • Shipping details: carrier, tracking number, delivery date, and received signature confirmation
  • Terms of sale disclosing fees, tax/vat/customs responsibilities, and return policy. 

It is required to ship items with full-value insurance to account for damages incurred during transit.

Items should be shipped 72 hours after payment is received by LiveAuctioneers. LiveAuctioneers reviews every order and may refund the payment if a bidder is deemed as too risky. On the rare occasion that payment is refunded, the auctioneer is notified and can seek out other methods for collecting payment if they wish. 

*To receive fraudulent ACH reversal coverage, proof of shipment must be provided, in the form of a tracking number, corresponding to the guaranteed order showing the item was shipped to the shipping address on the order

  • Shipment is at least 5 business days after ACH transaction is initiated or after ACH transaction settles, whichever is last
  • The shipment date cannot be later than the return notification date
  • Copy of the signature of receipt is provided for any orders where the shipping method on the order is BOPIS (Buy Online Pick Up In Store)

ACH Return code must be for No Authorization, Authorized Revoked or Corporate Not Authorized

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.