Chargeback Policy
Last updated: July 2026. Please read this policy carefully to understand how PayFly operates.
Definition of a Chargeback
A chargeback represents a formal payment dispute initiated by a customer directly through their payment issuer or bank. Common reasons for chargebacks include claims of unauthorized transactions (fraud), non-receipt of goods or services, or significant discrepancies between the product delivered and its description.
The Merchant's Burden of Proof
When a chargeback is lodged, the burden of proof rests entirely on the Merchant. Upon receiving notification of a chargeback via the Payfly dashboard, the Merchant is legally required to furnish compelling "Proof of Delivery" (POD) or evidence of service utilization within a strict window (typically 5 business days).
Payfly will rapidly transmit this documentation to the acquiring bank and the relevant Payment System Provider. These banking entities will independently evaluate the evidence and render a final, binding decision on the validity of the transaction.
Financial Repercussions
If the Merchant fails to submit evidence on time, or if the issuing bank determines the evidence is insufficient and rules in favor of the customer, the disputed funds—along with a chargeback penalty fee—will be aggressively recovered from the Merchant.
Payfly will automatically deduct these amounts from the Merchant's pending settlements. If the settlement balance is insufficient, Payfly retains the right to offset the deficit against the Merchant's Security Deposit or initiate legal recovery proceedings.
Monitoring and Account Suspension
Payfly continuously monitors Merchant chargeback ratios to safeguard the integrity of our financial network. Merchants demonstrating an abnormally high chargeback frequency will be subjected to severe risk mitigation measures. This may include the immediate imposition of rolling reserves, delayed settlement cycles, or the permanent termination of the Payfly Account.
Contact Information
For guidance on mitigating chargeback risks, please contact:
Payfly Risk & Compliance
Amrita Shergill Road,
New Delhi, 110003
Email: contact@payfly.in