Chargeback Process Flow

Chargeback process diagram flow
Note that the Token Service Provider may be located at the Issuer, Payment Network, or a third party

Chargeback Process Flow

The above diagram shows the Token Processing flow for a chargeback process flow request (or Chargeback data elements flow).

The following steps explain the chargeback process flow of the standard Payment Token data fields in the exception handling process of the transaction lifecycle.

1.  The Card Issuer typically files for a chargeback after validating that the original transaction is a valid chargeback, and that the Card Issuer has the appropriate chargeback rights.

2.  The Card Issuer files for a chargeback and provides the following Payment Token data fields to create the chargeback record to be sent to the Payment Network:

  • PAN that was used in the original purchase transaction.
  • Payment Token will be a new data element introduced in the chargeback record that can be provided.
  • Token Requestor ID will be optionally passed by the Card Issuer

3.  The Payment Network will interface with the Token Service Provider to:

  • Retrieve the PAN.
  • Verify the state of the Payment Token to PAN mapping in the Token Vault for the active Payment Token, and other controls that may be defined for that Payment Token.
  • If the Payment Token is not sent by Card Issuer, retrieve the Payment Token for the transaction that is being disputed to send to the Acquirer.

4.  Send the chargeback record to the Acquirer with the following information:

  • Replace PAN with Payment Token.
  • Token Requestor ID will be passed as an optional field

5.  The Acquirer performs validation on the chargeback record, and based on the investigation of the case, moves to another phase of dispute handling or resolves the chargeback.

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