Understanding Chargebacks and Refunds on Privex Pay

How refunds and chargebacks work on Privex Pay — including the refund request process, digital goods policy, and tips to keep your chargeback rate low.

Because Privex Pay acts as the Merchant of Record for your transactions, all refunds and chargebacks flow through Privex Pay — not directly between you and your buyer. Understanding this distinction is important for managing your account in good standing.

How refunds work

You cannot issue a refund directly to a buyer or make any direct demand for payment from a buyer in a transaction. The refund process works as follows:

1. Agree with the buyer

   Reach agreement with your buyer that a refund is appropriate.

2. Notify Privex Pay

   Contact Privex Pay through the Merchant Dashboard to request the refund.

3. Privex Pay processes the refund

   Privex Pay processes the refund directly to the buyer. The refunded amount is deducted from your account balance or next payout.

Digital goods policy

Digital goods, digital content, software, licences, subscriptions, and other intangible items are deemed delivered, opened, and used in full at the time the sale is completed.

This means no refunds are processed for digital goods unless required by applicable law. If you sell digital products, make sure your product descriptions and checkout experience are clear so buyers know what they are purchasing before completing the transaction.

How chargebacks are handled

A chargeback occurs when a buyer disputes a charge with their bank or card issuer. Because Privex Pay is the Merchant of Record, chargebacks are managed by Privex Pay on your behalf.

When a chargeback is filed:

• The disputed amount is deducted from your account balance or upcoming payout.
• Privex Pay may request transaction records or evidence from you to contest the dispute.
• You must cooperate promptly with any requests for documentation.

Excessive chargeback consequences

If your chargeback or refund rate exceeds thresholds set by Privex Pay or card schemes, Privex Pay may take immediate action — including suspending your account without advance notice.

Specifically, if Privex Pay determines that one or more of your products have an excessive chargeback or refund rate, Privex Pay may:

1. Immediately suspend the sale of all or part of your products
2. Implement additional monitoring or controls on your account
3. Terminate the Services with immediate effect
4. Share information about your business with its payment service providers

Tips to reduce chargebacks

Keeping your chargeback rate low protects your account and ensures uninterrupted payouts.

• Write accurate product descriptions — Buyers who receive what they expected are less likely to dispute charges.
• Respond quickly to customer issues — Good customer service resolves problems before they become chargebacks.
• Honor legitimate refund requests — Proactively refunding a dissatisfied customer is better than receiving a chargeback.
• Use clear billing descriptors — Make sure your product name appears recognisably on buyer statements.
• Deliver promptly — For any goods or services with a delivery component, fulfil orders on time and communicate delays immediately.