Refund escalation

2024-04-09 08:36

A refund escalation can be initiated by an Issuer when a payer wishes to dispute a payment and get a refund. As a merchant, you are free to decide whether or not to accept refunds. The payer can initiate a maximum of two refund escalation requests for the same transaction. The refund escalation process is displayed in the following graphic:

Figure 1: Flow chart of refund escalation

Terms of refund escalation response

You need to respond to the refund escalation within ten (10) calendar days. If you agree to a refund, initiate the refund within five (5) calendar days starting from the date the refund escalation response is made. Ant International dispute operation team will take corresponding measures such as reminding, re-educating, and requesting rectification for merchants whose response rate is significantly lower than the average level.
You need to select the appropriate refund type (Reject refund, Accept refund, and Accept partial refund), or provide additional input.
You need to collect, sort, and reply to the information according to the request by the Issuer.
The supporting documents provided by you need to be authentic, complete, and legible.
You need to provide all the supporting documents in English. Non-English materials must be accompanied by a legalized English translation version.

Response codes of an escalation

Response Codes	Description
001	Agree to a full refund
002	Agree to a partial refund
003	Refuse to refund

Table 1: Response codes of a refund escalation

Documents required

If you choose [002-Agree to partial refund] or [003-Refuse to refund], the following compelling evidence is required for a refund escalation response:

Reason Codes	Description	Corresponding Compelling Evidence
7801- Merchandise-related	Merchandise or service not received	At least one of the following is required: • Proof that the goods or services were delivered as agreed. • Proof that the relevant payer confirmed the delivery of the goods or services. • The agreed delivery method and delivery time. • Proof that the payer received the goods or services from you, including the goods or services information, and the receiving time and method.
	Merchandise or service not as described	You must provide sufficient transaction receipts (or other forms of transaction records) and other documents (if applicable) to prove that the original merchandise or service delivered is as described.
	Refund not processed	At least one of the following is required: • Documents to prove that the original refund is processed accordingly. • Documents that prove the situation where the refund request was invalid according to your published refund policy at the time of purchase, and confirm that the buyer was fully informed of the refund and return policy prior to processing the disputed transaction.
7802- Processing error-related	Difference in the transaction amount	If the Issuer has presented a purchase receipt showing an amount discrepancy, you must explain the reason for this variance in your response. Alternatively, if you have altered the transaction amount, you must provide documentation verifying that the payer has authorized the adjustment.
	Duplicate processing	You need to provide the receipt for the original transaction or other documents to prove that the original transaction was processed accordingly.
	Paid by other means	You need to provide transaction receipts or other documents to prove that the original transaction was not paid by other means.
7803- Fraud-related	Payer denied participation in a transaction	All of the following are required: • Proof of the account frequently used by the payer to communicate with you, or proof of use on the goods or services provided by you. • The transaction information (e.g., payer's IP address or device identification) of the disputed transaction. • Proof where the payer admits participating in the disputed transaction.

Table 2: Defense documents for refund escalation