A chargeback happens when a cardholder disputes a payment with their issuing bank. Here's the plain-English version of what that means for your business.
When a cardholder disputes a transaction, the issuing bank reverses the charge and asks the merchant to provide evidence the charge was valid. The card network and the issuer — not PayKato and not the processor — decide the outcome.
The merchant is financially responsible for the original amount during the dispute, plus chargeback fees set by the processor and any network fines. PayKato may debit your balance, deduct from future settlements, or invoice you for these amounts.
Clear descriptors, fast customer support, accurate product descriptions, and proof of delivery for physical goods are the highest-impact controls. Excessive chargeback ratios can trigger network-level penalties and account closure.
Have a chargeback question?
Talk to PayKato support and we'll help you understand the dispute and next steps.
PayKato is built to integrate with licensed payment processors and banking partners. Specific processors and availability are confirmed during onboarding based on country, merchant category, and partner approval. PayKato is not a bank and does not hold customer funds.