What is a chargeback

A chargeback is a forced payment reversal through the card issuing bank. The customer tells the bank that the transaction is fraudulent or that the service was not delivered. The bank freezes the funds until the dispute is resolved.

⚠️ At a chargeback rate above 1%, the payment system may block your processing. Keep an eye on this metric.

How a Chargeback Differs From a Regular Refund

Both mechanisms end with money going back to the payer, but they follow different paths and carry different consequences for the seller.

Parameter	Refund	Chargeback
Who initiates it	The seller, at the customer's request or on its own initiative	The customer — directly through the card issuing bank
Who it goes through	The seller's payment gateway	The customer's bank and the payment system (Visa, Mastercard)
Fee for the seller	Usually none or minimal	A fixed acquirer fee for each dispute
Effect on statistics	Not counted in the chargeback rate	Raises the share of chargebacks out of total transactions
Who decides	The seller	The issuing bank and the payment system, based on evidence

If the customer first asked the seller for a refund and got the money back that way, it usually never reaches a chargeback. The refund process for ZevsHost customers is described in hosting refunds: when and how.

The Chargeback Lifecycle

The customer files a dispute with their bank, stating the reason
The issuing bank freezes the amount and sends a request to the seller's acquirer
The seller gets notified and gathers evidence (a representment)
The payment system reviews the evidence and issues a decision
The money either returns to the seller or stays with the customer, depending on the outcome

Chargeback prevention

Measure	Effectiveness
3D Secure (Verified by Visa / Mastercard SecureCode)	High
AVS/CVV checks	Medium
Email verification before activation	Medium
Limit on new accounts	High
Monitoring unusual patterns	High

Common Reasons for Disputes

The customer didn't recognize the charge on their statement — the seller's name there differs from the service's name
The service wasn't delivered, or wasn't delivered in full
Suspected fraudulent use of the card by a third party
The same amount was charged twice (a duplicate payment)
The customer doesn't remember signing up for an auto-renewing subscription

How to respond to a dispute

Collect evidence: activity logs, IP, email correspondence
Show that the service was delivered (screenshots, uptime data)
Respond via the payment system within 7–14 days

💡 Keep customer activity logs for at least 180 days — this is the standard timeframe for dispute investigations.

What to Gather for the Evidence Package

The payment system reviews a dispute response (representment) as one package, not piece by piece. The more precisely the evidence is tied to the date and the customer, the higher the chance of winning the dispute.

Minimum evidence package:
1. Order date and time, customer's IP address
2. Email confirmation of the order and payment
3. Login logs after the service was activated (proof of use)
4. A screenshot of the active service or uptime statistics for the period
5. Correspondence with the customer, if they contacted support

If even one item is missing, the bank is more likely to side with the customer — not because the service wasn't delivered, but because it wasn't documented.

If a Chargeback Is Filed on Your Own Payment to ZevsHost

If you, as a ZevsHost customer, initiate a chargeback for a service that was actually delivered without first contacting support, that gets recorded as a factor that can affect whether a new contract can be made with you in the future. Before contacting your bank, open a ticket and describe the problem — in most cases the matter is settled through a regular refund, without a dispute through the bank.

When This Article Isn't About You

If you simply order hosting for your own project and don't accept payments from third parties through your site, chargeback prevention only concerns you as a one-off payer. The prevention section is aimed at those who sell services or goods to their own customers and accept card payments from them — for example, hosting resellers or owners of an online store running on a ZevsHost VPS.

Checking the Result

Regularly check the current chargeback rate in your acquirer's or payment provider's dashboard
Make sure 3D Secure is actually enabled on the checkout page, not just switched on in settings
Verify that customer activity logs are really kept for the stated period, not deleted sooner
Match the current list of prevention measures against what is actually enabled in the checkout form's settings