Chargeback Policy

What is a chargeback

A chargeback occurs when a cardholder disputes a charge with their issuing bank. The bank reverses the transaction and asks the merchant to provide evidence that the charge was valid. The decision is made by the card network and issuing bank, not by PayKato or the processor.

Merchant liability

You are financially responsible for chargebacks raised against your transactions, including the original amount, processor chargeback fees, network fines, and any related fees PayKato or its partners incur. PayKato may debit your balance, deduct from future settlements, or invoice you for these amounts.

Notification & response window

When a dispute is opened, we will notify you through the dashboard and/or email. You typically have a short window (often 7–14 days, set by the network) to submit evidence. Late or incomplete responses usually result in the dispute being decided against the merchant.

Evidence we recommend

• Proof of delivery or service performed.
• Customer communications.
• Order, invoice, and shipping records.
• Refund or cancellation policy shown at checkout.
• IP, device, and AVS/CVV match information where available.

Excessive chargebacks

Card networks set thresholds for chargeback rates. Merchants approaching or exceeding these thresholds may be placed in monitoring programs, charged additional fees, required to post a reserve, restricted from certain payment methods, or terminated.

Pre-arbitration & arbitration

If a dispute is reopened by the cardholder, additional fees and timelines apply, set by the network. PayKato will pass through outcomes as received from the processor.