Chargeback Lifecycle and Status Guide

Introduction

A chargeback is a transaction reversal initiated by a cardholder through their bank to dispute a charge on their account. This guide explains the various statuses a chargeback can have in both the PSP (Payment Service Provider) and Justt systems, and illustrates the typical lifecycle of a chargeback case.

Chargeback Status Definitions

PSP System Statuses

• needs_response: The chargeback requires a response from the merchant
• under_review: The chargeback is being reviewed by the PSP
• won: The chargeback dispute was resolved in the merchant's favor
• lost: The chargeback dispute was resolved in the customer's favor

Justt System Statuses

• waiting_for_data: Initial status when Justt is waiting for all required information
• building_evidence: Justt is preparing the case and gathering evidence
• pending_psp_results: Evidence has been submitted and awaiting PSP decision
• not_represented: The merchant chose not to contest the chargeback

Chargeback Lifecycle Flow

1. Initiation: Customer disputes a transaction with their bank

2. Case Creation:

   • PSP status: needs_response
   • Justt status: waiting_for_data

3. Data Collection:

   • Justt gathers transaction details, customer information, and evidence
   • Justt status transitions to: building_evidence

4. Evidence Submission:

   • PSP status: needs_response
   • Justt compiles and submits evidence package
   • Justt status changes to: pending_psp_results

5. Review Process:

   • PSP status: under_review
   • The case is evaluated by the card network and issuing bank

6. Resolution:

   • Favorable outcome: PSP status changes to won
   • Unfavorable outcome: PSP status changes to lost
   • No representation: Justt status was not_represented