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A chargeback on an installment plan disputes a single installment, not the whole order. The two examples below use the same order, so you can compare what happens when you win and when you lose. Fees are left out to keep the numbers simple.

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The example order

  • Order value: $1,200
  • Plan: 12 monthly installments of $100
  • Already charged: installments 1–5 ($500)
  • Still to be charged: installments 6–12 ($700)
  • Disputed: installment 5 ($100)

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When the chargeback is raised

This part is the same whether you go on to win or lose. What happens when a chargeback is raised on installment 5
  • The plan is paused. Installment 6 won’t be charged until the dispute is resolved.
  • The disputed $100 is deducted from your settlement.
  • A reserve is held from your settlement: the $700 still to be charged, plus installments charged in the last 120 days, since those could still be disputed.
  • To contest the chargeback, submit your evidence before the deadline.

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Case 1: You win the chargeback

The $100 is returned to you. Your customer then has 6 days to choose how to pay the remaining $700. Most customers don’t act within those 6 days, so doing nothing is the most common outcome. What happens to the plan when you win the chargeback Result: you receive the full $1,200 whatever the customer chooses, and the reserve is returned to you.

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Case 2: You lose the chargeback

Your customer keeps the $100 from installment 5. They then have 6 days to decide what happens to the remaining $700. Most customers don’t act within those 6 days, so doing nothing is the most common outcome. What happens to the plan when you lose the chargeback Result: the disputed $100 is lost in every case. If the customer does nothing, the remaining $700 isn’t collected through xPay. The reserve is returned after 120 days if no further chargebacks are raised on the plan.
Why is a customer who won asked to pay the remaining balance? Winning the dispute only refunds the installment they disputed. The other installments were never part of the dispute, so the customer decides whether to continue the plan, pay it off or let it lapse.

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Good to know

  • More than one disputed installment: the plan stays paused until every chargeback on it is resolved.
  • Refunds: an order with a chargeback can’t be refunded through xPay, whether the dispute is open, won or lost. Any refund has to be made as a direct transfer to the customer.
  • Long-running disputes: a chargeback still open after 140 days is treated as lost.