> ## Documentation Index > Fetch the complete documentation index at: https://docs.waffo.ai/llms.txt > Use this file to discover all available pages before exploring further. # Chargebacks > What a chargeback is, how the money moves, and what you must do before the response deadline. A refund is something you initiate. A chargeback is the cardholder going around you, straight to their bank — the funds are pulled from your balance whether you agree or not. *** ## What Is a Chargeback? A cardholder contacts their issuing bank and asks for their money back. The bank reverses the charge through the card network. You are not part of that conversation, and the funds move before anyone asks for your side of the story. | | Refund | Chargeback | | ---------------------------------- | ---------------------------------- | ---------------------------------------- | | Who starts it | You (or the customer, through you) | The cardholder, via their bank | | Your involvement | Full control | None until you are notified | | Cost | Principal only | Principal **plus** a \$25 chargeback fee | | Counts toward your chargeback rate | No | Yes | The \$25 chargeback fee is incurred the moment the issuer files the chargeback, regardless of how the case turns out. This fee is payable to the card networks, issuing banks, and acquirers. Waffo Pancake does not profit from such fees. We always do our best to avoid such occurrences. ### Why Cardholders File | Category | What happened | | ------------------ | ------------------------------------------------------------------------------------------- | | **True fraud** | The card was stolen or the number leaked. The cardholder genuinely never made the purchase. | | **Friendly fraud** | They did buy it, then regretted it — and told the bank they never bought anything. | | **Product issue** | Not delivered, delivered broken, or a subscription they tried and failed to cancel. | | **System error** | Double charge, or an amount that does not match what they agreed to. | *** ## Responding to a Chargeback Waffo Pancake notifies you by email. Case correspondence goes through [chargebacks@waffo.ai](mailto:chargebacks@waffo.ai). The notification email carries the case details. Confirm the case status and, above all, the **Expire Date** — accept or contest before that date. There is no extension. ### Your two options | | Accept the chargeback | Contest it | | ----------------------- | ------------------------------------------------------------------ | -------------------------------------------------------------------------- | | How | Reply to the chargeback notification email stating that you accept | Reply to the chargeback notification email with your evidence attached | | What you provide | Nothing | Transaction and order records, account usage logs, customer correspondence | | Extra cost | None | \$10.00 representment fee | | What Waffo Pancake does | Handles the downstream refund flow for you | Compiles your evidence and files it with the card network | | Outcome | Immediate — case closed against you | Decision in **75–180 days** | Do not process a refund yourself to "settle" a chargeback. The chargeback has already returned the money to the cardholder — a refund on top pays them twice and you absorb double the order value. Accepting is done by replying to the notification email. If a case passes its Expire Date with no action, it is automatically treated as forfeited. The funds are deducted from your settlement and there is no route to appeal. ### After you submit a defense Once your evidence reaches Waffo Pancake, we carry the case from there. You wait for the outcome. Waffo Pancake assembles your evidence and writes the rebuttal letter, formatted and argued the way the card network expects. The package goes to the acquiring channel, which passes it to the issuer. This is the slow step — a decision typically takes **75–180 days**. **Win** — the case closes and the \$100.00 principal returns to your balance. The \$35.00 in chargeback and representment fees does not, leaving a net of **−\$35.00**. **Lose** — the case escalates to pre-arbitration. Waffo Pancake keeps working the case with the channel. This stage adds a further \$25.00 pre-arbitration fee. **Win** — the case closes and the \$100.00 principal returns to your balance. The \$60.00 in chargeback, representment, and pre-arbitration fees does not, leaving a net of **−\$60.00**. Waffo Pancake updates you. **Lose, and you accept it** — the case ends here. It does not escalate, no arbitration fee is incurred, and your net is **−\$160.00**. **Lose, and you press on** — the case escalates to arbitration. Escalating is your decision, not a forced step. The card network makes the final ruling. Waffo Pancake works this stage with the channel from start to finish and updates you when the case closes. The arbitration fee is **\$500.00, paid by the losing side** — deducted from your settlement if you lose. The network's ruling is final. There is no further appeal. The overwhelming majority of cases end at the issuer review step. Pre-arbitration and arbitration are reached by a small minority of disputes. None of the escalation requires action from you, but it does stretch the timeline considerably. *** ## How the Money Moves Take a \$100 order. ``` Customer pays +$100.00 Processing fee −$4.40 You receive ≈ $95.60 ``` The processing fee is 3.9% + \$0.50. ``` Principal reversed −$100.00 Chargeback fee −$25.00 Net movement −$125.00 ``` The bank pulls both out of your balance before any review. ### Then one of three endings Contesting adds a \$10.00 representment fee on top. Accepting does not. Principal: **−\$100.00** Chargeback fee: **−\$25.00** Representment fee: **—** **Net: −\$125.00** No contest, no representment fee. Principal returned: **+\$100.00** Chargeback fee: **−\$25.00** Representment fee: **−\$10.00** **Net: −\$35.00** You get the revenue back. Neither fee comes back. Principal: **−\$100.00** Chargeback fee: **−\$25.00** Representment fee: **−\$10.00** Pre-arbitration fee: **−\$25.00** **Net: −\$160.00** Losing escalates the case to pre-arbitration, which carries its own fee. The \$25 chargeback fee is charged per case and is never refunded, regardless of outcome; a failed representment escalates the case to pre-arbitration, which adds a further \$25. Both of those and the \$500 arbitration fee are payable to the card networks, issuing banks, and acquirers. Waffo Pancake does not profit from such fees. The \$10 representment fee, by contrast, covers our own work: assembling your evidence, writing the rebuttal letter, and filing it with the channel. We always do our best to avoid such occurrences. *** ## Excessive Chargebacks To maintain the integrity of our platform and protect all users, Waffo Pancake may take action, including account suspension, if a store experiences an excessive number of chargebacks. *** ## FAQ Your win rate depends on the quality and compliance of the evidence. The Waffo Pancake platform provides a structured evidence checklist based on the reason code. Make sure your evidence is clear, complete, and targeted (for example, signed proof of delivery and explicit transaction authorization records) so that it meets the issuer's review standard. A systematic process also avoids technical losses caused by missing the deadline or submitting the wrong format. Once the formal chargeback process starts, the fees charged by the issuer and the card network are generally non-refundable. The most effective cost control strategy is therefore proactive defense. Most chargebacks can be prevented before they happen. The goal is to make an unhappy customer **reach you before they reach their bank**. * **An obvious support contact** — put it on the checkout page, in the order confirmation email, and inside the product. Not buried in the footer. * **A self-serve refund path** — if a customer cannot find a way to request a refund, their next call is to the issuer. Put the refund request somewhere they will actually find it. * **A billing descriptor customers recognize** — the number one cause of chargebacks is "I don't recognize this charge." Use the brand name they remember, not your registered company name. * **Product descriptions that match what is delivered** — a gap between the two turns into a "not as described" dispute. * **Renewal reminders and a cancellation path that works** — tell subscribers before you charge them, and do not put obstacles in the cancellation flow. * **Respond faster than the bank** — answer a complaint quickly and most problems resolve before a chargeback is ever filed. *** ## Related Chargeback, representment, and pre-arbitration fees in full. Where chargeback cases appear in your dashboard.