Chargebacks in South Africa: how to prevent and respond to card disputes

A chargeback happens when a cardholder disputes a card payment with their bank and the bank reverses it, taking the money back from you. Chargebacks in South Africa follow the card schemes' rules (Visa and Mastercard), so the process is broadly the same whichever gateway you use: the customer complains to their bank, the bank raises a dispute, your gateway tells you, and you get a short window to respond with evidence.

Chargebacks cost more than the sale. You lose the goods or service, the payment, usually a dispute fee from your provider, and the time it takes to respond. Too many of them can also put your merchant account at risk. The good news is that most disputes are preventable, and the ones that aren't can often be won with the right records.

How the chargeback process works

1. The cardholder disputes the payment with their issuing bank, through their banking app, a branch or a call centre.
2. The issuing bank raises a chargeback through the card scheme, with a reason code.
3. The acquiring bank and your gateway debit the amount (often with a fee) and notify you.
4. You respond with evidence by the deadline your gateway gives you, or accept the chargeback.
5. The issuer reviews your evidence and either reverses the chargeback in your favour or upholds it. Some cases go further, through additional rounds or scheme arbitration.

Deadlines are set by the schemes and your provider and are short, so the most important thing is to notice the notification quickly. Make sure dispute emails from your gateway go to a monitored mailbox, not one person's inbox.

Debit orders are disputed differently, through the bank's debit order dispute process rather than the card schemes. If you collect by debit order, read our guide to debit order disputes and the 60-day rule.

The most common reasons customers dispute

Only the first is true fraud. The rest are often called "friendly fraud" or, more fairly, service disputes: the customer couldn't get an answer from you, so they went to their bank.

How to prevent chargebacks

Make your name recognisable on bank statements

The text that appears on the customer's statement (the descriptor) should match the name customers know you by. If your trading name differs from your registered name, ask your gateway how the descriptor is set. Put the same name on invoices, receipts and the checkout page.

Send a receipt for every payment

A receipt by email immediately after payment, with what was bought, the amount and how to contact you, answers most "what is this charge?" questions before they reach a bank.

Make cancelling and refunds easy

For subscriptions, an easy cancellation path is your best defence against "I cancelled" disputes. Remind customers before renewals and annual charges, and process refunds promptly when you've agreed to them. A customer who gets a refund from you has no reason to ask their bank for one. Our guide to designing a fair cancellation flow covers this in detail.

Use 3-D Secure on card payments

3-D Secure asks the cardholder to approve the payment in their banking app or with a one-time PIN. Authenticated payments make "I didn't do this" disputes harder to sustain, and under scheme rules liability for many fraud disputes can move to the issuer. Check the details with your gateway, because the rules differ by scheme and situation. Hosted checkout pages from South African gateways generally handle 3-D Secure for you.

Avoid accidental duplicates

Use idempotency keys or unique references so a retried request can't create a second charge. See idempotency keys in payment APIs.

Describe what you sell clearly

Clear descriptions, delivery timelines and terms set expectations. Show your refund policy before payment, not after.

How to respond to a chargeback

When a dispute arrives:

1. Read the reason code so you answer the right question. Evidence of delivery won't help with a fraud dispute where the cardholder says they never ordered.
2. Check whether the customer is right. If you did charge twice or forgot a refund, accept the chargeback rather than issuing a separate refund, otherwise you may pay twice.
3. Gather evidence that addresses the reason directly.
4. Write a short, factual summary linking each piece of evidence to the claim.
5. Submit before the deadline through your gateway's dispute process.

Evidence that helps

• The invoice and receipt, with dates, amounts and line items.
• Proof of delivery or proof of use, such as courier tracking, sign-in records or service logs.
• The terms or cancellation policy the customer accepted, and when.
• Correspondence with the customer, especially anything acknowledging receipt.
• For subscriptions: the sign-up date, renewal reminders sent and the absence of a cancellation request.
• For fraud claims: 3-D Secure authentication results and any matching details from previous undisputed orders.

Keep records you can find in five minutes

Most lost disputes are lost because the evidence existed but couldn't be found in time. Keep invoices, receipts, emails and customer actions linked to the payment reference so anyone on your team can pull them together quickly. Your POPIA obligations still apply: keep what you need, for as long as you need it, and protect it.

How CentraPoint helps

Chargebacks are raised and answered through your card gateway, so you respond to the dispute in your gateway's merchant portal. CentraPoint helps with prevention and with the evidence. Customers can receive a branded receipt by email when a payment completes, and every payment keeps its invoice, receipt PDF, reference and gateway notifications together. The customer self-service portal lets customers find their invoices and receipts and manage or cancel subscriptions within the rules you set, which removes many reasons to call the bank. Refunds you record are linked to the original payment with a refund note, and the audit log shows who did what and when.

On plans with reconciliation, chargeback and return lines on imported Netcash statements are flagged against the payment they name, so a reversed payment doesn't stay marked as paid. See how payments flow through CentraPoint.

Frequently asked questions

How long does a customer have to dispute a card payment?

The time limits are set by the card schemes and depend on the dispute reason, and they are often longer than merchants expect. Ask your gateway for the limits that apply to your account and keep records for at least that long.

Can I win a chargeback?

Yes, when the dispute isn't valid and you can show it. Evidence that directly answers the reason code, such as proof of delivery for a "not received" claim, gives you the best chance.

Should I refund a customer who has already raised a chargeback?

Usually not. If the chargeback succeeds and you have also refunded, you can lose the money twice. Accept the chargeback or contest it through your gateway instead.

Does 3-D Secure stop all chargebacks?

No. It helps with fraud disputes, but service disputes such as "not received" or "cancelled" are unaffected. Good service, clear terms and easy cancellation prevent those.