Chargeback Handling

Recurly supports chargeback functionality for the following direct debit payment methods: ACH, SEPA, and Sofort. Supported gateways are CheckCommerce, Adyen, and GoCardless.

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Note

Recurly does not handle chargebacks for any other payment method other than the direct debit payment methods listed above.

Chargeback Settings

You can specify how you want to handle direct debit chargebacks on the invoice settings page. There are two options available:

1. Create a refund transaction when a chargeback is received (default). With this setting, recurly will create a refund transaction and add chargeback information to the original invoice when a chargeback webhook is received from a gateway. Specifically, Recurly will:

• Keep the original transaction in the original status
• Create a new refund transaction with an amount equal to the chargeback amount
• Add chargeback information to the original invoice

You can find the chargeback refund transactions on the Transactions page within the admin UI. On the Transactions page, simply select “Chargeback” in the Status filter and you will see the list of chargeback refund transactions.

2. Manually process chargebacks. With this setting you will still receive a webhook, but Recurly will not create a refund transaction nor take action on the original invoice.

In addition, you will not be able to filter by Chargeback status on the Transactions page since no chargeback refund transactions are created.