Refunds and chargebacks
Although Worldpay will not charge you for processing a refund, our fees for processing the original transaction are not refundable. Any successful chargebacks will incur an administration fee (this is variable, depending on your contract).
There are a number of ways to avoid
Ensure that customers recognise your description on their card statements
This is the easiest way for a merchant to avoid chargebacks. If your brand name is "recognisable" and the customer has made a purchase from recognisablename.com, make sure this is listed rather than your company name of “Obscure Ltd”. See this guide on how to
Issue an email receipt
It is good practice to issue an email receipt for each transaction. In this way customers who may have simply forgotten that they placed an order can find the details in their email account. This is also a good way to flag up any potential fraud.
Clearly display your contact information
This helps customers to get in touch to discuss their concerns. It is also important to respond to customer service enquiries as quickly as possible.
Keep customers updated throughout the delivery process
If you are shipping goods, this will minimise customer service enquiries and unnecessary chargebacks.
Make your return and refund policies easy to find and understand
This will prevent customers who are actually looking for a refund from requesting a chargeback. It is a good idea to ask customers to confirm that they have read and understood your refunds policy before placing their order.
Sometimes when you refund an order the refund is unsuccessful.
The most common reason for this is not having enough money in your Worldpay merchant code account. For example, this could be immediately after we transfer your recent transaction funds to your bank account - your Worldpay balance will be zero until further orders are taken, with insufficient funds available to cover a refund immediately. When this happens we will let you know by email and we will update the order to its correct state - SUCCESS or SETTLED or PARTIALLY_REFUNDED for example.
The best course of action is to retry the refund later, when you know that new orders' revenue will cover the refund.
If you have persistent problems with a particular refund, or if you need to refund an order immediately, please contact Customer Services. They will assist you further and can help you resolve the issue, for example by adding funds to your account e.g. from a debit card, to match the value of the required refund.
Should you need to issue a refund, it’s easy to do via the Worldpay dashboard. Look for the
refund button on the order's details page, or refund directly from the actions menu beside each order in the order list. You can issue either a full or partial refund to the payment method which was originally used to make the payment. Should you prefer, it is also possible to issue refunds via the
Please note that after requesting a refund it may take a number of days to be confirmed by the remote card issuer/payment service.
Although Worldpay will not charge you to refund a payment, you will not receive a refund for fees incurred for processing the transaction.
How Worldpay handles chargebacks depends on the nature of the dispute raised by the card issuer/payment service. Where possible, we will try to defend you against chargebacks by emailing you a request for more information about the transaction. The email will contain details of the order that has been disputed and how you can challenge it - see
If we are successful in defending you, the transaction will go through as normal. If the dispute is successful for the complainant, the funds will be automatically debited from your account and returned to the issuer. The payment status of this order will be changed to CHARGED_BACK in your dashboard, and the chargeback will show in your next transfer report. You will also be charged an administration fee (the amount is based on your contract) - this will appear on an invoice at the end of the month.
Yes, you sometimes will have the opportunity to defend yourself against a
If we receive a request for further information from the card issuer/payment service, the orderState will become INFORMATION_REQUESTED and we will contact you via email with details of the transaction and a list of information that you need to provide us with - for example a receipt or invoice and proof of delivery.
The best first step usually is to contact your customer directly. They may accept a refund as an alternative, or change their mind if they have made a mistake - for example, if they simply haven’t recognised the name of your company on their statement. In this case, you can ask them to contact their card issuer or payment service to withdraw the chargeback, and sign a letter confirming that they have authorised the transaction.
If that does not work, the next step is to provide us with the requested information.
If we are successful in defending you, the transaction will be processed as normal. However if the dispute is upheld, the funds will be returned to the issuer and you will be charged an administration fee.
It is a good idea to retain all your records of any goods and services supplied for at least 12 months in case a dispute occurs.
If a customer doesn't recognise a transaction when they check their account statement, their card issuer or payment service will usually recommend they contact you, the merchant, to verify that the goods or services were purchased correctly and completely. After review, you can then decide if a
If after this review the customer is still dissatisfied with the outcome, they then have the further option of asking their card issuer/payment service to help resolve the issue. This means a payment is in 'dispute'.
When a payment is in dispute Worldpay, the card issuer and the acquiring bank/payment service will follow clear and well-established procedures to resolve it. If the dispute defence is successful, nothing will happen. However, if the dispute is successful for the card issuer/payment service, the funds will be automatically debited from your account and returned to the card issuer/payment service – this is known as a 'chargeback'.