Frequently Asked Questions - Chargebee Payments

Here you can find the answers to some of most common questions associated with Chargebee Payments.

Onboarding

2. What are the country-wise business/ company identification numbers that will be required for onboarding to Chargebee Embedded Payments? To successfully onboard your business to Chargebee Embedded Payments, you must provide specific company identification numbers. These requirements may vary by country. Please find the necessary information for each supported country listed below. Please ensure you have these details readily available to facilitate a smooth onboarding process.

3. Who is a Control Person?

A control person is one who: (1) owns or controls 10% or more of the voting stock of a corporation; (2) holds a position as an officer or director of a corporation; or (3) is in a position to influence the decision-making process of a corporation.

4. Who are Beneficiary Owners?

A beneficial owner is an individual or entity that owns equity of 25% or more in a business. As part of the onboarding process, you must list all beneficiary owners who own more than 25% of the equity in the business.

5. What is a Merchant Category Code (MCC)?

Payment brands use merchant category codes to classify merchants and businesses by the type of goods or services provided in order to track and restrict transactions. These are four-digit numbers used by credit card issuers that describe a merchant's primary business activities. If you are unsure of what your MCC is, we recommend finding your business' MCC from Visa or Mastercard.

6. How long does it take for my application to be reviewed?

The review timeline may vary for each application, but we typically provide an outcome within 24 to 48 hours. We recommend regularly checking your Chargebee site for the status of your application.

7. How will I be notified of changes to the status of my application?

We send email notifications to update you on any changes to your application's status. Additionally, you can check the Chargebee site homepage, where a banner displays the most recent status of your application.

8. Does Chargebee and/or its Partner(s) contact by phone or email seeking additional information?

No, Chargebee and/or its partners will not contact you seeking documentation or additional information via phone or email. We urge you to share any communication with support to verify its authenticity prior to engagement.

10. What verification process is followed to review my application?

Complete Know-Your-Customer (KYC), Anti-Money Laundering (AML), and MATCH™ checks are mandatory as part of the onboarding process. Additionally, your application is subject to sanction screenings that are mandated by the Office of Foreign Assets Control (OFAC) or other regulatory bodies.

10. Why was my application rejected?

Our partner thoroughly reviews each application to ensure it aligns with the guidelines and requirements set by processors, sponsor banks, card networks, issuing banks, and other regulatory authorities. In the event of a rejection, we will share any relevant information provided by our partner.

11. Can I configure my Smart Routing to include multiple payment processors?

Smart Routing is configured to decide which payment gateway to use when processing a payment in a particular currency. You can configure smart routing when you want to route transactions in different currencies to different gateways.

12. Once Approved, how can I track the status of the transactions?

After your Chargebee Embedded Payments application is approved and Smart Routing is configured to route payments through Chargebee Embedded Payments, you can monitor all transactions via the Transaction List. Log in to Chargebee Billing > Chargebee Embedded Payments Portal > Transactions > Payments & Refunds. Click on the transaction for which you want to track the status. Drill down to Audit Logs.

Payments and Currency

2. Which Payment methods are currently supported by Chargebee Payments?

Chargebee Embedded Payments supports payments via debit cards, credit cards, prepaid cards, and direct debit. In direct debit, we support ACH, SEPA, and BACS. Alternative payment methods like Apple Pay, Google Pay, and iDeal will be added soon.

3. How can I view a list of all the payments processed over a period of time via Chargebee Embedded Payments?

Log in to the Chargebee Billing site, navigate to Chargebee Billing > Chargebee Embedded Payments Portal > Transactions > Payments & Refunds You will see the list of transactions processed via Chargebee Embedded Payments for the current month. You can use the date range filter to view processed transactions for any time period.

4. What steps should I take if a payment fails but the amount is still deducted from the customer's account?

Log in to Chargebee Billing > Chargebee Embedded Payments Portal > Transactions > Payments & Refunds. Click on the transaction for which you want to track the status. Drill down to Audit Logs to view the latest status of your transaction. You can also reach out to support if you still require additional assistance.

5. Are my details safe with the payment processor? Our payments partner, Adyen, is certified as a Level 1 Payment Card Industry Data Security Standards (PCI DSS) compliant Service Provider. This is the most stringent level of security certification available in the payments ecosystem.

Token Migration

Disputes

2. Can direct debit disputes be challenged by your customers?

No, your customers cannot defend Direct Debit chargebacks.

3. What is the process for submitting evidence when defending a dispute?

Chargebee Embedded Payments accepts only 1 document as evidence for defending a dispute. Please ensure all your supporting evidence is merged into a single file before uploading the file on Chargebee Embedded Payments Portal.

Direct Debit Transactions

2. Is there a transaction limit for direct debits for new customers?

Yes, for new customers, the default transaction limit for direct debit transactions is 5000 USD / EUR / GBP. If your specific use case requires a higher transaction limit, please contact our support team.

3. What is the difference between a late payment failure and a chargeback for a direct debit transaction?

A late payment failure occurs when the underlying systems cannot successfully process a direct debit transaction, often due to issues like insufficient funds or an invalid account (e.g., BACS, SEPA, ACH). This happens when the underlying system is unable to debit funds from a specified account. A chargeback is typically initiated by the customer (the shopper) disputing a debit. This can happen for various reasons, such as the customer believing the debit was unauthorized, the amount or date was incorrect, or the mandate was cancelled.

4. How can I track late payment failures and Chargebacks for direct debit transactions?

To track late payment failures: Login to your Chargebee Billing > Chargebee Embedded Payments Portal > Transactions > Payments & Refunds Filter the 'Type' as Payment Return. This will display a list of transactions that have resulted in a late payment failure for the selected time period. To track customer-initiated chargebacks, log in to the Chargebee Embedded Payments dashboard > go to Disputes → select the All tab. This will display a list of all customer-initiated chargebacks for the selected time period.

5. What are the fees associated with late payment failures and chargebacks for direct debits?

A fee of USD 7.50 (or equivalent in other currencies) is charged per transaction for late payment failures, and a Fee of USD 15 is charged per transaction for customer-initiated chargebacks.

6. What are the specific reason codes that indicate a late payment failure for direct debits?

The following reason codes are considered customer-initiated chargebacks.:

• BACS: "1", "4", "7", "8", "9", "D"
• SEPA: "MD06", "MS02"
• ACH: "R31"

7. What happens if my merchant account has a negative balance due to chargebacks?

Chargebacks will lead to a negative balance on your customer's account. To adjust this negative balance, funds need to be available in your chargeback reserve.

8. Why is a chargeback reserve needed for direct debit transactions?

Funds from direct debit transactions are typically settled into your customer’s account within T+2 days (Transaction day plus two days). However, the direct debit networks do not provide real-time authorization, and there can be a delay of 5-7 days for the underlying systems to fully process these transactions and confirm their success or failure. If a direct debit is ultimately failed (due to reasons like cancellation, dispute, or insufficient funds), it is booked as a chargeback. The chargeback reserve ensures that funds are available to cover these potential unpaid debits and resulting negative balance on your account. If chargeback reserves are not topped up, payouts will not be processed till the negative balance is adjusted. A chargeback can indicate that:

• The debit instruction was changed or cancelled.
• The shopper disputes the due date, amount, or frequency of the direct debit.
• The shopper has not paid the direct debit.
• There were insufficient funds in the shopper's bank account.

9. How much should I top up in my chargeback reserve?

We recommend topping up your chargeback reserve with an amount equivalent to 20-40% of your monthly Total Processing Volume (TPV). This helps ensure that your payout processing is not impacted by negative balances arising from chargebacks or late payment failures.

10. What happens if my chargeback reserve is not topped up sufficiently, and I have a negative balance?

If your chargeback reserve does not have adequate funds to cover a negative balance resulting from chargebacks or late payment failures, your payouts will not be processed until the negative balance is adjusted.

Refunds