The customer disputes a charge with their issuing bank. The merchant can dispute or accept the chargeback through their gateway.
When the chargeback reaches a final state (lost or accepted), Recurly receives a Chargeback Completed event from the gateway.
Recurly creates an external refund invoice and a corresponding chargeback transaction on the account.
Recurly expires the customer's subscription. Where supported by the gateway, subscription expiration occurs only for fraud and service chargebacks.
Contact Recurly Support or your account manager to enable chargeback management for your account.
On the Invoice Settings page, select Create a refund transaction when a chargeback is received (default).
Select the option to automatically expire subscriptions when a chargeback is received.
Follow the Adyen notifications configuration guide and enable the following webhook types: CHARGEBACK, SECOND_CHARGEBACK, DISPUTE_DEFENSE_PERIOD_ENDED.
Enable the originalReference for CHARGEBACK_REVERSED events in Adyen. See Adyen dispute notification setup.
Certain webhook statuses require action in the Adyen Dashboard to trigger. For example, to receive a webhook with disputeStatus: "Accepted", you must accept the chargeback in your Adyen Dashboard. See managing Adyen disputes.