Diagram illustrating the soft chargeback retrieval request process between cardholder, issuer and merchant

A cardholder's dispute of a transaction they did not make, raised through the card issuing bank, is called a chargeback.

So what does Soft Chargeback mean?

A soft chargeback simply means a request for documents. The process starts when a cardholder contacts the issuing bank about the details of a transaction that appears on their statement but that they do not remember. The issuing bank then requests detailed information and documents about the transaction from the POS bank (the acquirer), and the documents supplied by the merchant help the cardholder recognize the transaction. For this reason, it is important to keep the receipts of POS transactions securely for a certain period of time.

What are the possible reasons customers request a soft chargeback?

  • The cardholder queries a transaction, for example because they have lost the transaction receipt
  • The customer does not remember the purchase or does not recognize the transaction details on the bank statement (for example, the business's signage name differs from the name shown on the statement)
  • The amount on the credit card statement differs from the amount charged (this is usually seen in transactions abroad)
  • The information on the receipt is hard to read, or the transaction details are missing or incorrect
  • The card issuing bank treats the transaction as a fraudulent transaction

When the bank asks for information about a specific transaction, the merchant should provide additional documents that help determine whether the transaction is legible.

The information provided should be as clear and explanatory as possible.

What information should be provided about the transaction?

  • The cardholder's name, IP address and account number
  • The seller's information, such as name and website address
  • The order confirmation number, transaction amount, authorization code, etc.
  • A description of the products or services purchased
  • The dates on which both the transaction took place and the product or service was shipped

When the merchant delivers documents that clearly explain the transaction details, the soft chargeback (retrieval request) process will end favorably.

To resolve soft chargeback requests on time and prevent chargeback payments by the merchant, it is important for merchants to respond quickly (within 10 days).