Refunds and chargebacks
Refunds
Zip encourages sellers to make their own decision about refund policies based on their own business needs and requirements. If you do choose to offer refunds, they can be issued at any time via the Zip dashboard. The refunded amount (minus our platform fee) will be deducted from your next payout.
That being said, Zip reserves the right to issue refunds within 60 days of purchase, at its own discretion, in order to prevent chargebacks. So if you choose to have a "no refunds" policy, be aware that customers can issue chargebacks at any time against their purchases.
Chargebacks
A chargeback (or charge reversal, charge dispute etc.) happens when a customer asks their credit card provider to cancel a charge on their credit card statement. Chargebacks can be made for a variety of reasons, typically for fraud.
Generally, Zip will receive all chargebacks made against your sales, but as the merchant, you will decide how to take action. You can choose to challenge the chargeback or accept it. However, a failed challenge or failure to respond within the given timeframe (usually 60 days) will forfeit your chances to dispute, and the transaction will be fully refunded. We will then deduct the refunded amount (minus our platform fee) plus a ₱1,500.00 dispute fee from your next payout. Read our terms of service for more information.
Chargebacks can happen for several reasons:
- Someone purchased a product using a stolen credit card, and the credit card provider is now cancelling that charge.
- A customer does not recognize the charge on their credit card statement and asks for the charge to be reversed.
- A customer believes they have not received the product they paid for and, instead of asking you for a refund, contacts their credit card provider to cancel the charge.
When a chargeback occurs, Zip will gather all the relevant information and contact you. You’ll then have the opportunity to either challenge or accept the chargeback within a given timeframe. If you choose to challenge it, you’ll need to submit supporting documents, such as receipts, proof of delivery, or any other evidence that proves the legitimacy of the transaction.
We highly recommend contacting your customer as soon as you receive a chargeback notice. In many cases, resolving the issue directly with them and offering a refund can lead to the customer retracting their chargeback, helping you avoid any unnecessary chargeback fees.
Remember, acting quickly and having all your documentation ready can make all the difference in successfully disputing a chargeback.
If your account has had too many chargebacks issued against it, our team may get involved and your account may be suspended.