chargeback webhooks

[msykes]

Is there a webhook or similar to detect chargebacks, similar to refunds? That way, actions can be taken server-side to cancel pending purchase deliveries (such as event tickets for a future event).

Also, is there a way to test this in the sandbox?

[Renaissance · Accepted solution]

@msykes

For credit cards the answer is a definite no. For eCheck/ACH the answer is an almost definite no and is a no for webhooks. There is no chargeback webhooks and I am not sure that there is any automated API call that can be constructed. Auth.net has absolutely nothing to do with chargebacks for CC and has no records. For that you would contact your MSP. In your case you might have a use for this feature, but generally banks will allow several months to issue chargebacks. Given that you sell event tickets they are probably bought well in advance, but for many merchants the goods are already out the door by the time the chargeback hits.

My personal philosophy is to find a workaround for everything that the API doesn’t handle on its own. For this issue I would recommend having some sort of fine print in the email or order confirmation page that “for hassle free refunds, contact...” as this should catch most people who would attempt chargebacks. That would be something you could track without having to contact your MSP or integrate whatever they may have to track.

[msykes]

@Renaissance Thanks for the reply. It didn't look like it to me either but worth asking in case!

Oh well, good to know... so, they need to handle it separately/manually. I don't use a.net myself so I didn't know the process, so basically chargebacks will never get notified or recorded via a.net only by the account owner's bank, right?

[Renaissance]

Yes that is correct. Auth.net is the gateway not the processor. The processor will be the merchant services provider which is typically the account owners bank. It is a bank to bank event when a chargeback is issued.