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Funding Your Refund and Chargeback Reserve

Refund or Chargeback Reserve is a dedicated pool of funds used to process customer refunds and cover potential chargebacks. Maintaining a sufficient balance in this reserve is essential to ensure uninterrupted refund processing. If the reserve balance reaches zero, you will be unable to process refunds and will receive an error message when attempting to do so.

Refund and chargeback reserves are dedicated pools of funds. They help ensure seamless refund processing, protect against chargebacks, and cover late payment failures.

  • Refund Reserve: The refund reserve is used exclusively to process your refunds. If the refund reserve balance reaches zero, all refund attempts will fail. You will see the following error message:
  • Chargeback Reserve: The chargeback reserve covers disputed transaction amounts and associated fees resulting from chargebacks or late payment failures. If your chargeback reserve is insufficient, the shortfall will be deducted from your daily payouts. You'll be notified of this adjustment. If a chargeback is resolved in your favor, the corresponding amount is credited back to your chargeback reserve.
  • Maintaining your reserves: Maintain adequate balances in both reserves to avoid disruptions in refund processing or payout settlements. You can top up your reserves at any time to ensure uninterrupted operations.

Note:

Topping up your refund reserve may take up to three business days after initiation (standard ACH/SEPA debit settlement time). Always plan ahead to avoid disruption to your refund reserve.

Why maintaining a reserve is important

Seamless customer experience

Ensuring your reserve is adequately funded helps prevent refund delays and improves customer satisfaction.

Avoid processing errors

An empty reserve triggers an error message and prevents refund transactions from completing successfully.

This article provides step-by-step instructions for adding funds to your Refund or Chargeback Reserve using the Chargebee Embedded Payments back-office portal.

Funding your refund or chargeback reserve

Follow these steps to add funds to your reserve:

Step 1: Access the Chargebee Embedded Payments dashboard

  1. Log in to your Chargebee Embedded Payments dashboard.
  2. Navigate to the Payouts section in the left-hand menu.
  3. Locate the Reserve Balance section. If your balance is low or at zero, click Add Funds.

Step 2: Select a Bank Account

  1. On the Add Funds screen, choose a previously used bank account or add a new one.
  2. Funds will be debited via Direct Debit:
  • ACH (United States)
  • SEPA (Europe)
  • BACS (United Kingdom)

Note:

Direct Debit transactions may take up to three business days. You can monitor the transaction status via the portal.

  • If adding a new bank account, enter the required details and click Add.

Step 3: Enter the Funding Amount

  1. Specify the amount to add to the refund and/or chargeback reserves. Both amounts will be processed as a single ACH transfer.
  2. Click Next to proceed.

Step 4: Review and confirm

  1. Carefully review the entered details. If any information is incorrect, you can modify it before confirming.
  2. Click Confirm to finalize the transaction.

Step 5: Transaction initiation

  1. A confirmation message appears, indicating the transaction has been initiated.
  2. The updated reserve balance will be displayed once the funds are received.

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