Understanding Chargebacks: Who Decides the Outcome?

Understanding Chargebacks: Who Decides the Outcome?

A guide to how chargebacks work and who makes the final call.

📌 Quick Summary

When a cardholder disputes a transaction, a chargeback is created. Live Payments does not decide the outcome. The decision is made by the cardholder’s bank (the issuing bank) and, in escalated cases, the card network (e.g., Visa or Mastercard).

Chargebacks can be stressful, but understanding the flow helps. Below is a simple breakdown of the steps and the roles involved, plus practical actions you can take to give yourself the best chance of a fair outcome.

How the Process Works

  1. Dispute Raised — The cardholder contacts their bank (the issuing bank) to dispute a transaction.
  2. Chargeback Issued — The issuing bank reviews the claim and, if valid, initiates a chargeback.
  3. Live Payments (Acquirer’s Role) — We forward the chargeback notice to you and support you in providing evidence to challenge the dispute.
  4. Evidence Reviewed — The issuing bank reviews your evidence.
  5. Decision Made — The issuing bank (and, in escalated cases, the card network such as Visa or Mastercard) makes the final decision.

Who Does What (Roles Explained)

👤 You (Merchant)
  • Provide timely, clear evidence to support the transaction.
  • Keep accurate records (receipts, delivery proof, policies).
  • Respond by the stated deadline.
🏦 Issuing Bank
  • Receives the cardholder’s dispute.
  • Reviews your evidence.
  • Makes the initial decision.
🏢 Live Payments (Acquirer)
  • Forwards chargeback notices to you.
  • Supports you in preparing evidence.
  • Submits evidence in the correct format.

Key Point for Merchants

⚠️ Important: Live Payments acts as a facilitator in the process — we make sure your evidence is submitted promptly and in the right format.
However, the final decision always rests with the cardholder’s bank or the card scheme.


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