Citation :

Shubham Jindal, "Card Payments Refunds, and Chargebacks in United States of America," International Journal of P2P Network Trends and Technology (IJPTT), vol. 15, no. 2, pp. 11-17, 2025. Crossref, https://doi.org/10.14445/22492615/IJPTT-V15I2P402

Abstract

Card payments in the US are secure because of the Authorization and Capture model, but often there is a scope of fraudulent transactions, which leads to disputes being raised by the customer with their bank. Also, customers usually want to return the services or products bought at a merchant due to several reasons, such as customer dissatisfaction with the product or service, poor quality products, or better alternative options. Now, for the Payment Service Providers, Merchants, and Technical Service Providers, it is essential to support both refunds and chargeback processing while protecting merchants from fraudulent chargebacks raised by scam customers. The article will discuss refunds and the chargeback process in detail. Then the article will discuss the reconciliation problem, which arises due to the asynchronous nature of refunds and chargebacks, which also affects payouts, and provide a solution to reconcile the transactions and solve payout problems. 

Keywords

Refunds, Payouts, Chargebacks, Arbitration, Reconciliation.

References

[1] Shubham Jindal, Introduction to the Digital Payments, pp. 1-470. [Online]. Available: https://www.bseindia.com/corporates/download/327260/DRHP_20250430105517.pdf
[2] Chargeback, Wikipedia. [Online]. Available: https://en.wikipedia.org/wiki/Chargeback
[3] How to Reconcile Chargebacks and Chargeback Reversals. [Online]. Available: https://www.chargebackgurus.com/blog/chargeback accounting-simple-steps-to-reconcile-chargebacks-chargeback-reversals