Chargeback/Dispute Procedure

What is a Chargeback?
 

Understanding the Mechanism, the Parties Involved, and Smily’s Role

The term “chargeback” comes up frequently in the world of payments, but it is often misunderstood. Yet, it is a crucial consumer protection mechanism, governed by international card networks and enforced by financial institutions.
Here’s a detailed overview to better understand how it works.

Summary 

1. What is a chargeback?

2. Who issues a chargeback?

3. Who makes the final decision?

4. Smily’s role in a chargeback

1. What is a chargeback?

A chargeback is a procedure initiated by a traveler’s or customer’s bank to dispute a credit card transaction.

In other words, the cardholder believes that the payment should not have occurred—because they suspect fraud, because a service was not provided, or because they dispute the quality of the service.

In a chargeback process:

• The traveler’s bank reviews the request.
• The transaction is temporarily suspended.
• The merchant (here, the Property Manager or host) is asked to provide evidence to justify the legitimacy of the payment.

A chargeback is therefore a banking recourse that allows the consumer to obtain a refund if their dispute is deemed valid.

2. Who issues a chargeback?

A chargeback is never issued by the merchant or by a provider like Smily.
It is always initiated by the traveler’s bank, either:

• at the request of the traveler, or
• automatically in case of suspected irregularities (fraud, technical issue, etc.).

The bank then forwards the dispute to the card network (Visa, Mastercard, American Express…) and to the Property Manager’s payment provider.

3. Who makes the final decision?

The final decision rests with the traveler’s bank, according to the rules and criteria set by the card networks.
Neither the traveler, the Property Manager, nor Smily decides the outcome of the case.

The role of the other parties is limited to providing and transmitting the necessary information:

• The traveler submits their dispute details.
• The Property Manager gathers evidence to support the transaction.

• Technical providers, including Smily, transmit the full file.

   

4. Smily’s role in a chargeback

It is important to clarify that Smily has no decision-making power in a chargeback.
Our role is solely that of a neutral intermediary between the traveler’s bank and the Property Manager.

Specifically, we assist with:

• relaying the dispute request,
• helping the Property Manager prepare a precise and complete file,
• ensuring that evidence is submitted within the required deadlines,
• clarifying each step of the process.

However:

• we cannot refuse a chargeback request,
• we cannot influence or alter the decision,
• we cannot accept or reject the file.

The decision belongs exclusively to the traveler’s bank.

As you will have understood, unlike the majority of payment gateways that handle chargebacks in an automated manner, SmilyPay has chosen a human and personalized approach. When a chargeback is received, our teams contact you directly (as the property manager) to clearly understand the origin of the dispute, identify the relevant elements, and build a strong dispute case that complies with the requirements of issuing banks.

This proactive approach not only helps maximize the chances of success when contesting a chargeback, but also reassures you throughout a process that is often complex and stressful.

SmilyPay does not simply forward a notification: we position ourselves as a true partner, working alongside the merchant to defend their interests and reduce the financial and operational impact of chargebacks; however, the final decision ultimately lies with the issuing bank.

Important to note : Sometimes the decisions made may seem unfair or unbalanced, and we are fully aware of this, but unfortunately, there is nothing we can do to intervene or change the outcome.