Understanding Diners Chargebacks with PbN Payments

When a chargeback occurs, Practices must efficiently navigate the Diners Dispute Process to improve their chances of a favorable resolution. Here's an overview of the steps and key actions you should take at each stage.

1. Notification of Chargeback (NoC)

• What Happens: You’ll receive a notification about an upcoming chargeback.
• Action Required: Prepare and submit defense documents to contest the chargeback or choose to accept the dispute.
• Key Point: The chargeback debit typically occurs a few days after the NoC.

2. 1st Chargeback

• What Happens: The disputed amount is deducted from your account.
• Action Required: Submit defense documents within 40 days or accept the chargeback.
• Key Point: This is the final step if no documents are uploaded or the dispute is accepted.

3. Information Supplied

• What Happens: PbN forwards your defense documents to the card scheme (Diners).
• Key Point: Once documents are submitted, they cannot be modified.

4. Chargeback Reversed

• What Happens: The disputed amount is temporarily returned to your account while the issuer reviews the defense.
• Key Point: If the issuer approves your defense, the chargeback is resolved in your favor.

5. Pre-Arbitration

• What Happens: If the issuer rejects your defense, a second chargeback is initiated, and the issuer files a Pre-Arbitration case.
• Key Point: No further arbitration is allowed after this stage.

6. Pre-Arbitration Outcome

• Pre-Arbitration Won: If your documents are accepted, the chargeback is resolved in your favor.
• Pre-Arbitration Lost: If not, a second chargeback is finalized, ending the dispute process.

7. 2nd Chargeback

• What Happens: A second chargeback is initiated if your defense is declined.
• Key Point: This marks the end of the dispute with no further recourse through Diners.

Submitting Defense Documents: File Formats and Requirements

To avoid delays in processing, please follow these file size and format guidelines for Diners disputes:

• File Formats:

  • JPG, TIFF, PDF (Max size: 3 MB per file)

• Specific Requirements:

  • Diners disputes must adhere to the 3 MB size limit.

Key Documents to Include in Your Defense

General

• Invoice copy
• Description of goods/services
• Proof of credit/reversal not addressed by the issuer
• Evidence that the cardholder used your service or failed to cancel within your policies
• Screenshots of terms and conditions agreed upon at purchase

Already Paid

• Proof of non-payment or refund confirmation
• Communication showing payment status or agreements

Canceled Services

• Proof that your cancellation policy was shared and agreed upon
• Evidence that the services were used before the cancellation request
• Documentation of any communication or attempts to resolve the issue

Canceled Transactions

• Invoice, service description, and confirmation email sent to the cardholder
• Record of previous non-disputed payments and CVV/CVC verification
• IP address and device information linked to the cardholder's billing details

Canceled Recurring Transactions

• Proof of agreed cancellation policy and service usage between billing and cancellation
• Evidence of continued interest or failed contact attempts by the cardholder