Introduction
Account funding (AFT) and original credit (OCT) transactions move money quickly between a customer’s payment card and their account. Because these payments occur in real-time, any dispute or chargeback must be handled promptly and with complete documentation. Chargebacks on AFT/OCT transactions usually occur when:- A customer claims the transaction was unauthorized or fraudulent
- A duplicate debit or credit occurred
- The customer doesn’t recognize the charge and disputes it with their card issuer
Transaction Finality
- Original Credit Transactions (OCTs) are push payments—once funds are sent to the receiving card, they cannot be reversed.
- Account Funding Transactions (AFTs) are pull payments that can be disputed if fraudulent or processed in error.
Responding to a Chargeback
When a cardholder disputes an Account Funding Transaction (AFT) or Original Credit Transaction (OCT), the card network initiates a chargeback. Because these transactions settle almost instantly, documentation quality and timeliness directly determine recovery outcomes. As the merchant of record, the FinTech is responsible for collecting and submitting complete evidence within the network’s timeframe. Synctera and TabaPay validate and forward this documentation to Visa or Mastercard.Workflow Overview
- Exception Notification: A chargeback triggers an Exception ID and Dispute Case in the Synctera Console. Use this Exception ID to track and name your submission file.
- Response Deadline: You have 10 calendar days from the exception date to submit your evidence. Late submissions cannot be represented and result in a permanent loss.
- Evidence Upload: Upload your evidence package as a single PDF (≤ 10 MB and ≤ 18 pages) to the related Synctera Console case.
- Review & Network Submission: Synctera reviews your evidence for completeness and compliance before forwarding it to TabaPay, which represents the transaction to the network.
- Network Review & Resolution: Visa or Mastercard reviews the FinTech’s documentation alongside the issuer’s claim.
- Reversed: Evidence supports the FinTech; funds are returned.
- Upheld: The issuer’s claim stands; debit remains final.
Submission Standards
Submissions that are complete, timestamped, and consistent across logs, device data, and communications have the highest recovery success rate.- Combine all evidence into a single, readable PDF file. It should not exceed 18 pages or 10MB in size.
- Name the file exactly as the Exception ID (e.g., 123456.pdf).
- Upload directly to the Synctera Console case.
- Avoid additional attachments or oversized files—they cannot be logged.
Evidence Review Timeline
Most AFT/OCT chargebacks resolve within 30–45 days after submission. After upload, Synctera will:- Validate formatting and data completeness.
- Notify you if corrections are needed before sending to TabaPay.
- Forward to TabaPay once approved for representation to Visa or Mastercard.
Best Practices for FinTechs
- Treat the 10-day deadline as firm—extensions aren’t available.
- Use organized, labeled evidence (auth logs, KYC, device info, support messages).
- Include clear authentication proof (3-D Secure, device recognition, login timestamp).
- Avoid duplication or incomplete screenshots—legibility is required for representation.
- Track outcomes to refine fraud, refund, and customer-education strategies.
Evidence Checklist & Examples
A strong chargeback response clearly shows that the transaction was valid, authorized, and fulfilled as intended. All documentation must be compiled into a single, legible PDF before upload. Your goal is to connect three elements in your evidence: 1) The customer, 2) The transaction, and 3) The account activity before and after the event.Core Evidence Components
A. Merchant Overview
Include your legal and DBA name, app or website URL, support contact info, and a short description of your product or service. Example: “This transaction occurred on [AppName.com], a registered financial services app offering instant account funding. Support: support@[domain].com.”B. Transaction Summary
Show when and how the customer initiated the transaction, authentication steps taken, and confirmation of success. Include:- Transaction date and amount
- Channel used (app, web, API)
- Authentication method (login, 2FA, 3DS, device recognition)
- Confirmation that funds were credited or disbursed
C. Authorization Details
Provide:- Authorization date/time
- Authorization and settlement amounts
- AVS/CVV match results
- 3-D Secure status (if applicable)
- Network reference number
D. Customer Account & Device Information
Document identifiers linking the user to the activity:- Customer name/email
- Account creation date
- Funding card type and last 4 digits
- Most recent login
- Device ID, IP address, and city/region
E. Supporting Documentation
Attach proof that the transaction was completed properly.| Type | Purpose | Example Evidence |
|---|---|---|
| Transaction Receipt | Shows date/amount and completion status | Screenshot or email confirmation |
| Account History | Demonstrates prior valid activity | Account statement or history log |
| Terms Acceptance | Confirms agreement to policies | Timestamped consent screen |
| KYC / DocV Record | Proves verified customer identity | ID match summary or selfie record |
| Customer Communications | Shows acknowledgment or no dispute | Chat or email confirming transaction |
Optional Compelling Evidence
Card networks define compelling evidence as proof directly tying the cardholder to the disputed transaction. Include any that apply:- Successful 3-D Secure record
- Device ID/IP matching previous valid activity
- Post-transaction login or balance check
- Fulfillment or credit completion logs
- Customer confirmation acknowledging the transaction
Evidence Quality Checklist
Before uploading, confirm: ☑ Dates, times, and IDs are consistent across logs ☑ Screenshots are clear and labeled ☑ Device/IP details match prior valid sessions ☑ No unrelated personal data is visible ☑ File name = Exception ID exactly (e.g., 123456.pdf)Tips for FinTech Teams
- Keep all standard templates for screenshots, receipts, and system logs to ensure consistency across cases.
- Avoid sending raw data exports; instead, summarize only the relevant sections to keep the PDF concise and readable.
Operational & Customer Controls
Preventing chargebacks begins with robust authentication, adequate transaction controls, and clear customer transparency. These measures reduce unauthorized use, improve dispute success rates, and build trust with users.Strengthen Authentication
- Enable 3-D Secure (3DS) on all transactions.
- When authentication succeeds, liability may shift to the issuer.
- Treat 3DS as part of a layered security model — pair it with device recognition and login verification.
- Require verified logins before AFT/OCT initiation.
- Use device fingerprinting to identify new or mismatched devices.
- Apply 2FA or one-time passwords for new card links or large-value transactions.
- Temporarily block accounts after repeated failed authentications until manually reviewed.
Apply Velocity and Limit Controls
- Limit AFT attempts per card, user, device, and IP. Start with a Crawl–Walk–Run rollout:
- Crawl (first 60 days): conservative limits to observe patterns
- Walk (60–90 days): gradual increases for verified users
- Run (after 90 days): adjust limits based on risk performance
- Suggested thresholds:
- Max 3 AFTs per card per 24 hours
- Max $1,000 total AFTs per 7 days
- Max 2 active funding cards per account
- Flag rapid back-to-back loads or repeated failed AFTs.
- Use tighter limits for new or high-risk accounts and expand gradually.
Verify Cardholder Information
- Perform AVS and CVV checks on every AFT.
- Compare the cardholder name with the account holder name
- Require proof of ownership (e.g., card statement snippet) when necessary.
- For OCT payouts, confirm the recipient card belongs to the verified account holder.
Maintain Accurate System Logs
- Record timestamps, device IDs, IPs, and authorization results for every transaction.
- Retain logs for at least 18 months to meet network evidence lookback windows.
- Ensure data can be quickly exported and linked to the customer ID.
Strengthen Customer Communication
- Send instant confirmations (in-app and email) after each AFT/OCT. Include the amount, date, and last four digits of the card.
- Display refund and cancellation policies before transaction confirmation.
- For AFTs funded via credit card, clearly disclose: “Your card issuer may treat this AFT as a cash advance, which could result in additional fees or interest.”
- Provide fast support via chat or ticketing. Most disputes escalate when customers can’t reach support quickly.
- Align your app name, merchant descriptor, and customer-facing identity across all channels.
- Educate users with concise FAQ content that explains instant funding, reversibility, and dispute timeframes.
- Retain all refund communications or acknowledgments as proof of good faith.
Post-Submission & FAQs
After you upload your evidence package to the Synctera Console, the review process begins. Synctera validates the submissions, and TabaPay presents them to the card network. The result determines whether funds are recovered or the loss is final. Quick and complete submissions ensure fair consideration for you and your customers.Review and Resolution Process
- Synctera Review
- Confirms your PDF meets network standards (format, naming, legibility, required fields).
- Request corrections if any details are missing before forwarding to TabaPay.
- TabaPay Submission
- Sends the validated case to Visa or Mastercard for review against the issuer’s claim.
- Network Outcome
- Reversed: Evidence supports the FinTech; funds are returned.
- Upheld: The issuer’s claim remains; the debit is final.
- Timeline
- Most AFT/OCT chargebacks resolve within 30–45 days of submission.
- Late submissions (past 10-day window) cannot be represented.
Continuous Improvement
Use each case outcome as feedback to strengthen controls:- Analyze upheld disputes to find process or visibility gaps.
- Review merchant descriptors and customer messaging that led to “unrecognized” claims.
- Reassess velocity and authentication rules quarterly.
- Share learnings with product and operations teams to reduce recurrence.
Frequently Asked Questions
- What happens if I miss the 10-day deadline?
- The case cannot be represented; the chargeback remains final. Review new dispute cases daily and respond promptly to them.
- Can I upload multiple files or screenshots at once?
- No. Combine all materials into one PDF (≤10 MB, ≤18 pages). Additional attachments can’t be processed.
- What counts as strong or “compelling” evidence?
- Anything linking the customer to the transaction, such as a successful 3DS, device/IP match, login records, or proof of delivery/funding completion.
- Can I appeal a decision?
- For AFT/OCT transactions, the first representation is typically final.
- Should I contact the customer directly?
- Yes, if appropriate. Communicating quickly can resolve misunderstandings and prevent repeat disputes, but still submit your evidence within the 10-day deadline.
- How do I know the case is resolved?
- Synctera updates the case in the Console once the network finalizes the outcome. Keep the Exception ID as your permanent reference.