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Chargeback Policy

I.     General

A chargeback occurs when a Purchaser requests the issuer of his/her credit or debit card to cancel a transaction that has already been approved. Among the most common reasons for requesting reimbursement of charges are:

1. Causes related to the delivery of the product such as:

- Product not received, the Purchaser pays for a product but never receives it and
- Very different product, the Purchaser pays for a product but receives one very different from what he expected.

2. Unauthorized use. Purchaser loses the number of his/her credit or debit card or this one is stolen and fraudulent use is made of it.

It is important to emphasize that a chargeback derives in a process that is not internal of Pagadito but unfolds externally by the issuer of the credit or debit card of the transaction at issue. Likewise, in a transaction processed in Pagadito, a chargeback amount is limited to the amount debited to the credit or debit card User.


II.    Procedure

In the event that Pagadito is notified of a chargeback, the selling User and the Pagadito Comercio involved in the sale shall be identified and then Pagadito shall try to charge the Pagadito Comercio User Account for the full amount of the chargeback plus the chargeback fee of US $ 15.00.

Where there are insufficient funds in the Pagadito Account to cover the chargeback, attempts shall be made to try to do an automatic charge to credit  or debit card associated, for which the User expressly consents in advance for Pagadito to do this type direct charges to his/her card. If it is not possible to charge the associated card, Pagadito shall request the seller / Pagadito Comercio reload his/her Pagadito Account for the amount of the chargeback plus the chargeback fee of US $ 15.00 within a period of time no later than 5 business days.

Should a Pagadito Comercio not reload within the appointed time, Pagadito shall proceed to notify the execution of the security which was signed as a guarantee in case of chargebacks (see Guarantee of payment of chargebacks).

If the seller / Pagadito Comercio reloads within the appointed time, Pagadito shall request the Seller to provide information and evidence –if necessary– to dispute the chargeback.

Notwithstanding the foregoing, if the chargeback is generated before the deadline for the accreditation of funds to the Pagadito Comercios, Pagadito reserves the right not to make payments to the account and freeze the amount of the chargeback transaction.

To obtain information and evidence, a notice shall be sent to the Seller / Pagadito Comercio  to login to “Messages / Chargebacks on his/her Mi Pagadito Account from where it shall request the seller / Pagadito Comercio, information and evidence to contest the chargeback (See Ideal Proof for challenging Chargebacks).

If the evidence received is not sufficient or if more information is required, Pagadito may request further evidence.

It is the obligation of the seller / Pagadito Comercio to provide all information and evidence to support the compliance of its obligations derived from the sale of a product or service on its website, so if the seller / Pagadito Comercios does not cooperate, the amount frozen because of Chargebacks shall be paid to the Pagadito administrative account.


III.  Appropriate evidence to challenge Chargebacks

The following information may increase the possibilities of winning a chargeback dispute with the issuer of the card:

  1. Proof of receipt
  2. A copy of the original description of the product published
  3. Evidence that the Purchaser has already received a refund
  4. Evidence that the purchaser has been provided with a replacement product
  5. Any correspondence with the Purchaser or a positive rating made him/her
  6. Any contract signed or accepted by the purchaser at the time of purchase
  7. Any returns policy made known to the Purchaser.


IV.   Resolution of a Chargeback

At the end of the challenging process for a chargeback, Pagadito shall proceed as follows:

A.     In case of a favorable resolution for the Seller / Pagadito Comercios:

If there were a freezing of funds, these are paid back into the Pagadito User Account.

B.     In case of an unfavorable resolution for the Seller / Pagadito Comercio:

In all cases in which a chargeback is confirmed and the freezing of funds has been attained, the Seller / Pagadito Comercios shall be notified that the frozen amount shall now be paid to Pagadito administrative account in the concept of the generated chargeback.


V.   Guarantee of chargeback payment

It is a Promissory Note or Bill of Exchange issued by a Pagadito Comercio used to guarantee payment for any chargebacks generated by Pagadito Comercio Purchasers. Upon analysis of the validation documents of the Pagadito Comercio, Pagadito shall request the issuance of the security. This guarantee shall be renewed at Pagadito’s request.

At the time of generating a chargeback against a particular Pagadito Comercio, Pagadito shall request, should there not be sufficient funds in the Pagadito Comercio Account, to reload the account to proceed to freeze the funds while the problem is being solved. However, if the Pagadito Comercio does not make the reload within the appointed time, Pagadito reserves the right to execute such title in order to collect the full value of the chargebacks and other costs generated from them.

Receiving process

The title must be delivered to the places designated by Pagadito in each country, as part of the registration and validation process, at the time indicated by Pagadito. Mailing costs shall be covered by the Pagadito Comercio.

In the event that the disputed chargeback is annulled by resolution of the Card Issuer and Pagadito has executed the Note, Pagadito shall return the amount of the guarantee to the Pagadito Comercio Account.

Also, if the disputed chargeback is annulled by resolution of the Card Issuer and Pagadito has executed the title, if the amount of the security exceeds the cost to be covered, Pagadito shall return the surplus to the Pagadito Comercio Account. 


VI.  Fee for Transaction rejection without activating the Claims Settlement Mechanism

If the Purchasing User rejects or reverses a charge on his/her credit or debit card through the card issuer without first activating the Claims Settlement Mechanism offered by Pagadito he/she will be charged a fee of US $ 50.00.