This document describes the process of obtaining refunds and chargebacks in case of any failed/stuck transactions in Zomentum Payments.
Zomentum Payments aims to streamline the payment process between Managed Service Providers (MSPs). All refunds/chargebacks are handled to give the user a smooth payment process.
A refund is when a partner voluntarily returns a customer’s money to them. A partner may initiate a refund if the customer is dissatisfied with the product or service.
get in touch with support to start a refund.
How do refunds work?
You can issue a refund. Depending on the payment method, there may be some fees associated with issuing refunds. The payment processing fees from the original charge are not returned.
When a customer initiates a refund, we place a provisional credit in the partner account for the amount of the disputed transaction. The refund funds and fees are taken from the balance account of the partner.
A chargeback is when a customer disputes a charge with their credit card issuer and the issuer reverses the payment.
A customer initiates a chargeback and is typically initiated for reasons such as fraud, merchandise not being received, or dissatisfaction with product or service quality.
When a customer initiates a chargeback, we place a provisional credit in the partner account for the amount of the disputed transaction.
The partner will then be notified of the chargeback and may be asked to provide evidence to dispute the claim.
If the partner is unable to provide sufficient evidence to dispute the claim, the chargeback will be processed and the processor will deduct the amount of the disputed transaction from the partner's account.
When a customer initiates a chargeback from the partner when using Zomentum Payments, Zomentum will contact the partner for any additional information or documents required to process the chargeback.
Zomentum adds a 15$ charge when a chargeback is activated.
Zomentum submits the dispute to the acquiring bank for resolution. If the dispute is found in favor of the customer, the partner will be liable for the chargeback amount, and the acquiring bank will debit this amount from the partner settlement account. The partner will also be charged a chargeback fee.
Whether a payment can be disputed depends on the payment method. Credit card payments are defendable, whereas bank transfers are not.
We advise you to have clear contracts and agreements with your customers, sending invoices after delivering the goods and services is common practice and keep a minimum of 7 days before collecting a recurring payment.
Common Payment Methods Chargebacks
ACH Direct debit
ACH Direct Debit is a popular payment method used in the United States and Puerto Rico as an alternative to credit and debit cards. The payments are processed via the Automated Clearing House (ACH), which is an electronic network for processing financial transactions.
To accept ACH Direct Debit payments, you must have a registered business entity in the United States.
Both one-off and recurring payments are supported by ACH. Due to the risk of chargebacks, we don't recommend using ACH Direct Debit for one-off payments.
The ACH network is unable to provide real-time authorizations. This means there is a risk of transactions being reversed if, for example, the bank account has insufficient funds. Additionally, the shopper can initiate a chargeback up to 60 days from the initial date of the direct debit payment.