What is a Chargeback?
A chargeback is a payment dispute initiated by a customer through their bank or credit card provider. It occurs when a customer requests a refund directly from their financial institution rather than through the merchant (Hostinger). Chargebacks are meant to protect consumers from fraudulent or unauthorized transactions but can sometimes be misused or result from misunderstandings.
How Does a Chargeback Happen?
A chargeback process typically follows these steps:
Customer Disputes a Transaction: The cardholder contacts their bank, claiming an issue with the payment (e.g., unauthorized charge, dissatisfaction with the service, or unrecognized transaction).
Bank Investigates: The bank reviews the claim and temporarily withdraws the funds from the merchant’s account while investigating the dispute.
Merchant Responds: Hostinger can provide evidence proving that the transaction was legitimate (e.g., invoices, usage logs, or proof of service delivery).
Final Decision: The bank decides to either uphold or reverse the chargeback, returning funds to the customer or the merchant accordingly.
Why Are Chargebacks Harmful?
Chargebacks negatively impact both the company and the bank:
For Hostinger:
Loss of revenue due to refunded payments.
Increased operational costs from processing disputes.
Risk of account suspension by payment processors if chargeback rates are too high.
Possible loss of customer accounts and services.
For Banks:
Additional administrative workload to review disputes.
Potential financial losses if chargebacks are fraudulent.
Strained relationships with merchants and payment processors.
What Happens When a Chargeback is Detected?
Once a chargeback is detected on an invoice, the following actions occur:
The related invoice is automatically refunded.
The associated service is canceled.
Payment methods on the account are disabled to prevent further transactions.
How to Resolve a Chargeback with Hostinger
If a chargeback has been placed on an invoice, follow these steps to resolve it and restore your account access:
1. Review Chargeback Notification:
You will receive an email informing you that your service has been canceled due to Refund Request. Or a Refund Confirmation email you did not request.
2. Gather Required Information
Reason for the Chargeback: Explain why the dispute was initiated.
Agreement to Settle the Invoice: Confirm if you are willing to repay the refunded amount to reactivate services and be auto charged on your saved payment method for it.
Provide Payment Verification: Gather a photo of the credit card used, showing the first 6 and last 4 numbers only:
Or your bank statement showing the date and amount of the payment. The statement should clearly display:
Payment date
Amount paid
Transaction destination (Hostinger)
3. Upload Your Payment Proof
Open the Payment Verification form.
Select Payments - verifying details from the dropdown list.
Enter the email address associated with your Hostinger account.
Upload your card photo or bank statement as a document or image.
4. Notify Customer Support
Once you have submitted the required documents, contact our support team through your panel's help page with the confirmation that you agree to the payment.
Our team will review your submission and guide you through the next steps to reactivate your service.
By following these steps, you can efficiently address chargebacks while ensuring continued access to your Hostinger services. If you have any questions, feel free to contact our support team—we’re here to help! 😊