Overview
A chargeback occurs when your customer questions your direct debit payment with their bank. After which, the customer's bank immediately reverses the payment (crediting the customer's account) and pulls the funds from Belvo's account. After that, Belvo debits your balance for the payment amount and fees associated with it.
Chargebacks in Mexico
In Mexico, direct debit disputes are regulated by the CIRCULAR 23/2009 from the Banco de Mexico. The customer that is charged via direct debit has a maximum of 90 calendar days from the transaction date to dispute a direct debit transaction. Each bank has different timeframes and processes for handling the dispute process. However, usually, once a customer has raised a chargeback claim the bank automatically credits the customer with the funds.
General Flow
The following diagram illustrates the flow of a chargeback:
- Your customer informs their bank of the disputed direct debit transaction.
- Your customer's bank refunds the customer in the amount of the transaction.
- Belvo’s banking partner is notified of the chargeback and retrieves the amount from Belvo’s account
- Within 24 hours, Belvo updates the
statusof the Payment Request tochargeback. - Belvo debits your balance in the amount of the transaction.
- Belvo notifies you via webhook that a chargeback has occurred.
Reversing chargebacks
In Mexico, the only way to reverse a chargeback is for you to reach out directly to your customer to clear up the matter and then make a new payment request.