What is an Error Charge?
An error charge is a fee that a 3P merchant may be charged to cover the cost of refunding or crediting a customer for a missing or incorrect order
What can trigger an error charge?
An error charge may be assessed if an item is reported as missing, incorrect, or the wrong order is received by the customer.
What is a chargeback?
A chargeback is a transaction reversal that occurs when a customer disputes a charge with their bank or credit card company. The disputed amount is returned to the customer while the merchant is typically charged a fee and required to provide evidence to support the original charge
What is a dispute ?
A dispute is a formal process initiated by a merchant to challenge an error charge or chargeback. The merchant provides evidence to support their position that the charge or chargeback is incorrect or unjustified.
What is a reversal ?
A reversal is a refund or credit issued by a merchant or payment processor to return funds to a customer. This can occur for a variety of reasons, including an error in the original transaction or as a result of a dispute resolution.
Different States of an Orders in Loop chargeback manager?
1. “Eligible for Dispute”
“Eligible for Dispute” refers to the orders we received contains a problem that was not our fault, and we should not have been charged for it. We can dispute such error charges with the platform to seek a refund or credit. The exact process for disputing an error charge may vary depending on the platform, so we recommend looking at the specific help documentation for Doordash, UberEats, Grubhub to learn more about the dispute process.
2. To be Raised
"To be raised" refers to orders that we still need to dispute through Loop’s chargeback manager. We aim to raise disputes for such orders on the same day we identify them, but in some cases, we may need to provide additional evidence, contact the aggregator's customer care, or submit more documentation, which may take up to 7 days to complete after we detect the error charge.
3. In Progress
"In progress" refers to disputes that we have successfully raised through our chargeback manager and are currently awaiting outcomes from the aggregators. We typically achieve an 85% win rate for chargebacks, but the time it takes to receive a response or outcome from the aggregator can vary from 1 day to 7 days.
4. Accepted
"Accepted" refers to disputes that have been successfully resolved, meaning that the aggregator has confirmed that we will be credited with the disputed amount. It may take up to a week for the credited amount to be reflected in our bank statement and for a payout to be generated. You can also view the payout details in the payment reporting section under the Financials tab.
5. Denied
"Denied" refers to disputes that have been unsuccessful, meaning that the aggregator has denied our claim for a refund or credit for the disputed amount. In other words, we have not been successful in disputing the charge. When a dispute is denied, the original charge remains on our account and we will not receive any refund or credit.
6. Expired Orders
"Expired" refers to error charges that are too old to be disputed. The dispute option is not available in the app for charges older than 14 days on Doordash, 30 days on UberEats, and 30 days on Grubhub.