Chargeback Resolution Procedures within Peerwallet

A chargeback situation arises on the Peerwallet platform when a customer raises a dispute regarding a transaction with their financial institution or payment service provider. Peerwallet functions as a wallet system, whereby funds received through checkouts are deposited into the customer's Peerwallet balance, subsequently undergoing an automated transfer to the relevant seller. The transaction mechanism, specifically in the context of peer-to-peer (P2P) checkouts, is designed to facilitate the loading of the customer's Peerwallet account, which is then seamlessly transferred to the seller.


In instances where a customer initiates a dispute through their financial institution, Peerwallet classifies such events as potential fraudulent activity and consequently suspends the customer's Peerwallet account. However, it is crucial for sellers, vendors, and customers utilizing the Peerwallet platform to be well-informed about the following aspects when such situations arise.


Chargeback Fees:

Peerwallet enforces a foundational chargeback fee of $25, which is borne by the seller. It is noteworthy that the vendor's individual chargeback fee, if applicable, is combined with the base fee. Should the vendor's payment gateway levy charges for every chargeback event, these costs are further integrated into the total fees payable by the seller.


Dispute Resolution Process:

Upon receipt of a chargeback notification from the customer's payment gateway, the vendor undertakes the task of identifying the specific transaction within the Peerwallet system. Subsequently, the vendor initiates a dispute resolution procedure aimed at addressing the matter. This process entails engaging in a dispute dialogue involving the vendor, seller, and a Peerwallet staff member.

The primary objective of this dialogue is to facilitate effective communication between the seller and the customer, thereby offering an opportunity for the resolution of the dispute. Notably, a stringent 24-hour timeframe is allocated for this resolution process within the Peerwallet framework. Should the seller be unable to arrive at a satisfactory resolution, the Peerwallet staff reserves the right to render a resolution favoring the vendor's position. Upon reaching this point, the funds associated with the transaction are credited to the vendor's Peerwallet balance, with concurrent deductions to cover dispute resolution fees.

In instances where the seller's Peerwallet balance proves insufficient to cover the aforementioned costs, the deficit is recuperated from the seller's security deposit, thus ensuring financial stability within the platform.


Reputation Implications:

It is imperative to recognize that occurrences of chargebacks have a direct impact on the seller's reputation within the Peerwallet ecosystem. The evaluation of a seller's reputation is calculated based on the ratio of successful sales to chargeback instances. If a seller's reputation rating declines significantly, it could result in the unavailability of card gateways at their checkout.


Reporting Mechanisms:

Customers on the Peerwallet platform possess the ability to initiate transaction dispute resolutions through the prescribed pattern provided by the platform. In such cases, Peerwallet acts as an intermediary, sharing the customer-provided evidence with the respective seller. In contrast, instances where customers directly approach their payment gateway to initiate chargebacks are treated as potential fraudulent activities. Subsequently, the customer's Peerwallet account is suspended and subjected to blacklisting measures.