Improvements to the (second) chargeback process

To improve the chargeback reconciliation process for our merchants, Adyen will introduce a new journaltype called ‘SecondChargeback’. With this update, merchants will be able to easily distinguish when a dispute event is a first time ‘Chargeback’ event, or if the cardholder/issuer disagrees with the merchant defense materials and is filing a Dispute for the second time - hence ‘SecondChargeback’. Currently, ‘SecondChargeback’ journals are being booked as ‘Chargeback’.

Migration date

The ‘SecondChargeback’ journal will be booked on all disputes that fall into this category on November 5th. It is important to note that the ‘SecondChargeback’ journal will be booked under the same dispute pspReference number as the initial ‘Chargeback’ for all applicable schemes. This means that the following journals are booked on a dispute pspReference, also depicting the status of a chargeback:

2ndcb.png

Applicability

The ‘SecondChargeback’ journal will only be booked on disputes received for Visa (VCR-collaboration flow only), Mastercard, Diners, and Discover transactions acquired via Adyen.

SecondChargeback journal for payments in installments in Brazil

For merchants that accept payments in installments, a dispute can have multiple ‘SecondChargeback’ journal bookings, because the issuing bank will send a second chargeback for every installment that was already defended. When the first SecondChargeback is received, the dispute will be considered lost.

Test SecondChargeback

In order to create dispute with a ‘SecondChargeback’ journal on Adyen’s TEST platform, you can set the card.holderName to ‘Second Chargeback’ in a payment request. This will create a dispute with the following flow of journals: ‘Chargeback’, ‘ChargebackReversed’, ‘SecondChargeback’. This functionality will be available on the 24th of September.

Chargebacks in transit (chargeback created before migration date)

In case of lost defense of a first-time chargeback which was initiated prior to the migration date, the ‘SecondChargeback’ journal will be booked on the existing dispute pspReference number.

Technical Changes

Please review your integration and processes to ensure you are able to accommodate the new journal type. The following areas are affected:

  • Reporting
    • ‘SecondChargeback’ will be a new value in the ‘Type’ field which is used in:
      • Settlement detail report
      • Daily/Monthly finance report
      • Aggregate settlement report
      • Payment accounting report
      • Interactive payment accounting report
      • Dispute transaction details report
  • Notifications
    • Notifications will include a new Dispute Event value in the field “eventCode”:
      • ‘SECOND_CHARGEBACK’.
    • Please visit our Dispute Notifications documentation for an example notification with eventCode ‘SECOND_CHARGEBACK’.
  • Customer Area
    • The status of a payment (payment pspReference) may show ‘SecondChargeback’ if applicable.
    • The ‘SecondChargeback’ journal is booked on an existing dispute pspReference number.
    • A dispute with status ‘SecondChargeback’ is not defendable.
  • Dispute API
    • Adyen is not adding new data fields or changing the parameters of existing data fields for the Dispute API.
    • A dispute with status ‘SecondChargeback’ cannot be defended anymore and therefore will not return any defense reason.
For more information contact Support. Submit a request

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