Chargeback Representment
Chargeback representment is the process of contesting a disputed transaction by submitting evidence to the issuing bank that the charge was valid: proof of delivery, authentication records, and terms accepted. A successful representment reverses the chargeback and recovers the funds.
Every chargeback counts toward the ratio that decides whether an acquirer keeps you, so winning representments does more than recover cash: it defends the metric that governs your account. Operators with a disciplined representment process routinely recover a meaningful share of disputes that would otherwise push the ratio toward threshold.
Chargeback ratio is the share of transactions disputed by cardholders against total transaction count in a given month.
3D Secure is the authentication layer that verifies a cardholder during an online purchase, through the card networks’ programmes such as Visa Secure and Mastercard Identity Check.
An acquirer is the bank or financial institution that processes card payments on a merchant’s behalf, settling funds from the card networks into the merchant’s account.
A rolling reserve is a percentage of each settlement an acquirer withholds for a set period, typically 90-180 days, to cover potential future chargebacks or refunds before releasing it back to the merchant.