The verdict in three sentences
A chargeback is a payment dispute initiated by the customer's bank: it claws back the amount and adds fees of 5,000 to 15,000 FCFA, even if the order was delivered. The only way to survive is to respect the cycle (respond with evidence within 7 to 10 days) and above all to prevent it upstream. A rate above 1% puts you into the networks' monitoring programs, with penalties and the risk of losing the right to accept cards.
The chargeback cycle
Everything moves fast. From the notification, the clock ticks, and a missed deadline means an automatically lost dispute.
| Stage | Typical delay | What you do |
|---|---|---|
| Notification (D+0) | Immediate | Receive the PSP alert |
| Gathering evidence | D+1 to D+5 | Invoice, tracking, logs |
| Submitting the response | Before D+7 to D+10 | Send the file |
| Bank decision | D+30 to D+75 | Await arbitration |
| Final arbitration (rare) | D+90+ | Paid escalation |
Missing the response window means a certain loss. Hence the importance of automating the alert as soon as the PSP notifies you.
The evidence that wins
Not all evidence is equal. A winning file combines the customer's agreement, proof of delivery and the technical trace.
| Document | Weight in the decision | Available for |
|---|---|---|
| Signed proof of delivery | Very strong | Physical product |
| Timestamped carrier tracking | Strong | Physical product |
| Access / download logs | Strong | Digital product |
| 3-D Secure authentication | Very strong | Eligible card |
| Confirmation email + customer IP | Medium | All |
| Accepted terms of sale | Medium | All |
| Customer purchase history | Low to medium | Repeat customer |
On average, a well-organized merchant wins about 40% of disputes. It's not 100%, but on high baskets, every won file counts.
Network delays and prevention
Visa and Mastercard set their own windows, and mobile money follows a different dispute logic (often handled directly with the operator). The best strategy remains prevention: a clear billing descriptor (the name the customer recognizes), systematic tracking and a responsive customer service prevent half of chargebacks, which are often "friendly fraud" caused by confusion.
| Prevention lever | Estimated effect on the rate |
|---|---|
| Clear billing descriptor | -25% |
| Detailed confirmation email | -15% |
| Shared delivery tracking | -20% |
| 3-D Secure on risky cards | -30% |
| Support reachable within 24 h | -20% |
Mini case study
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Grace runs a fashion store in Nairobi, average basket 35,000 FCFA equivalent, and suffers 12 chargebacks a month. Each costs her 35,000 FCFA + 10,000 FCFA in fees = 540,000 FCFA/month. She sets up a clear billing descriptor, systematic tracking and a standardized evidence file. Chargebacks fall to 6 a month, and she wins 40% of them. New cost: about 6 x 45,000 x 0.6 = 162,000 FCFA/month. Saving: over 370,000 FCFA per month.
FAQ
What's the difference between a chargeback and a refund?
A refund is you voluntarily returning the money, with no penalty fee. A chargeback is imposed by the customer's bank, with 5,000 to 15,000 FCFA in fees and an impact on your rate, which the networks monitor.
Does mobile money generate chargebacks?
Not in the card sense, but disputes handled with the operator (Wave, Orange Money, M-Pesa). The evidence logic is similar: show delivery and confirmation. It is often faster than a card chargeback.
What chargeback rate is acceptable?
Under 1% of volume. Beyond that, Visa and Mastercard place you in monitoring programs with monthly fees and an obligation to reduce the rate, on pain of losing card access.
Can I dispute every chargeback?
Yes, but aim for those where you have real evidence. Disputing blindly wastes time. An organized merchant wins about 40% of well-targeted disputes.
How do I reduce chargebacks quickly?
Three immediate actions: a recognizable billing descriptor, a detailed confirmation email, and 3-D Secure on risky transactions. Together, they often cut the rate in half.
Let's talk about your project. We set up chargeback alerts, an automated evidence file and prevention levers to keep your rate under 1%. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
