CHARGEBACK POLICY
Rudr Payments Tech Pvt. Ltd.
Brand: Rudr Pay
1. Introduction
Rudr Payments Tech Pvt. Ltd. (“Rudr Pay”) is a financial technology and digital services company engaged in providing secure, technology-driven infrastructure for digital payments, banking-related services, merchant services, financial services and other permitted digital services.
Rudr Pay operates as a technology and service enabler supporting merchants, retailers, distributors, business partners, financial institutions and other eligible entities through its platforms, APIs, applications, dashboards and digital interfaces.
This Chargeback Policy governs the process for handling disputed, contested, unauthorized, fraudulent, failed or otherwise chargeback-eligible transactions processed through Rudr Pay’s systems or through its banking, payment gateway, acquiring, sponsor-bank or other authorized partners.
The objective of this Policy is to establish a transparent and structured framework for dispute management, chargebacks, refunds, reversals, settlement adjustments and related recoveries while maintaining transaction security, regulatory compliance and effective risk management.
2. Purpose and Objectives
The objectives of this Chargeback Policy are:
2.1
To establish an efficient and transparent mechanism for addressing customer disputes relating to failed, fraudulent, unauthorized, duplicate, disputed or unsatisfactory transactions.
2.2
To clearly define the roles, responsibilities and liabilities of merchants, retailers, distributors, partners and other stakeholders involved in disputed transactions.
2.3
To protect the integrity, reliability and reputation of Rudr Pay’s platform by preventing misuse, negligence, fraudulent activities and non-compliant transactions.
2.4
To promote responsible merchant conduct, transparent customer communication, proper service delivery and timely resolution of customer complaints.
2.5
To use risk-monitoring indicators, including Chargeback-to-Sale (CTS) and Fraud-to-Sale (FTS) ratios, to identify merchants or transactions presenting elevated risk.
3. Applicability
This Policy applies to:
3.1
All merchants, retailers, distributors, master distributors, institutional partners and other entities using Rudr Pay’s platforms, APIs, applications, dashboards or technology infrastructure.
3.2
Transactions processed through cards, UPI, wallets, payment gateways, banking channels or other permitted digital payment instruments, subject to the applicable arrangement with banks, payment processors, acquiring/sponsor banks and payment networks.
3.3
All communications, investigations, dispute management activities, chargebacks, reversals, refunds and settlement adjustments relating to transactions processed through or facilitated by Rudr Pay.
4. Chargeback Lifecycle
The chargeback lifecycle generally begins when a customer/cardholder raises a dispute with the issuing bank or relevant payment institution and continues until the dispute is finally resolved.
Rudr Pay shall facilitate the process in accordance with applicable banking arrangements, payment network rules, contractual obligations, regulatory requirements and its internal risk-management procedures.
4.1 Step 1 – Customer/Cardholder Dispute
A customer/cardholder may raise a dispute for reasons including:
Unauthorized or fraudulent transaction
Non-receipt of goods or services
Failure to provide the promised service
Damaged or defective goods
Duplicate transaction
Incorrect debit
Billing error
Product/service not as described
Other reasons permitted under applicable payment-network or banking rules
The issuing bank/payment institution may investigate the complaint and may provide provisional credit to the customer where permitted under applicable rules.
4.2 Step 2 – Issuing Bank Investigation
The issuing bank/payment institution reviews the customer’s complaint and supporting information.
Where the dispute qualifies as a chargeback under the applicable rules, the issuing bank may initiate the chargeback through the relevant payment network or payment-processing channel.
The disputed amount may subsequently be debited or placed on hold by the acquiring/payment partner and may be recovered from Rudr Pay and/or the concerned merchant, partner or service provider.
The merchant shall provide all requested supporting documents within the prescribed timeline.
4.3 Step 3 – Merchant Notification
Upon receipt of a chargeback/dispute notification from a banking partner, payment gateway, acquiring institution or payment processor, Rudr Pay may notify the concerned merchant through registered email, dashboard, application notification or other official communication channel.
The notification may include:
Transaction reference/transaction ID
Transaction amount
Date and time of transaction
Applicable dispute/chargeback reason
Available supporting information
Required response
Response deadline
The merchant will generally be required to respond within 3–5 business days, or within such shorter period as may be prescribed by the relevant banking/payment partner.
4.4 Step 4 – Merchant Response
The merchant may either Accept or Contest the chargeback.
4.4.1 Accepted Chargeback
If the merchant accepts the chargeback, or fails to provide the required response within the prescribed timeline, Rudr Pay may treat the chargeback as accepted, subject to applicable rules.
The corresponding amount may be recovered from the merchant’s wallet, settlement amount, security deposit or subsequent payouts.
4.4.2 Contested Chargeback – Representment
If the merchant disputes the chargeback, the merchant must provide sufficient documentary evidence establishing that the transaction was legitimate and that the applicable goods/services were properly delivered.
Rudr Pay may submit the evidence to the relevant payment processor, acquiring bank or banking partner for further processing.
4.5 Step 5 – Decision and Resolution
The relevant issuing bank, acquiring bank, payment network or payment processor shall review the evidence according to applicable rules and timelines.
Possible outcomes include:
Chargeback reversed in favour of the merchant
Chargeback upheld in favour of the customer
Further information requested
Pre-arbitration
Arbitration or other applicable escalation
Rudr Pay shall communicate the available final outcome to the concerned merchant.
Where the chargeback is upheld, the merchant shall bear the applicable financial liability unless otherwise determined under the applicable rules or contractual arrangement.
4.6 Step 6 – Pre-Arbitration / Arbitration
Where permitted under the applicable payment-network rules, a disputed chargeback may proceed to pre-arbitration or arbitration.
Rudr Pay does not guarantee that every case will be escalated to arbitration. Such escalation shall depend upon:
Applicable network rules
Banking/payment partner procedures
Availability and strength of evidence
Commercial viability
Applicable fees and costs
Contractual arrangements
Any arbitration fee, penalty or related cost imposed by the relevant payment network, bank or processor may be recovered from the responsible merchant/partner, where contractually and legally permissible.
Rudr Pay shall not be responsible for providing legal representation to merchants. However, where appropriate, Rudr Pay may provide transaction-related documentation available within its systems.
4.7 Step 7 – Post-Resolution Closure
After resolution of the dispute, Rudr Pay may:
Update its internal records
Release or adjust applicable settlement holds
Adjust the merchant’s wallet/settlement
Recalculate relevant risk ratios
Apply applicable fees or penalties
Increase monitoring
Restrict transactions
Suspend services
Terminate the merchant relationship in cases of serious or repeated violations
5. Important Chargeback Rules
5.1
A voluntary refund should not normally be processed while an active chargeback/dispute is pending for the same transaction, unless specifically permitted by the relevant banking/payment partner.
5.2
The merchant must not provide a duplicate refund for a transaction already reversed or recovered through the chargeback process.
5.3
Where a merchant processes a refund during an active dispute without obtaining appropriate confirmation, any resulting duplicate financial loss may be recovered from the merchant.
5.4
Chargeback liability shall be determined according to applicable payment-network rules, banking arrangements, contractual terms and the facts of the transaction.
5.5
Rudr Pay may place a temporary settlement hold where reasonably required to protect against potential chargeback, fraud or other financial risk.
6. Timeframes
Stage | Indicative Timeline
Chargeback initiation | As permitted under applicable network/banking rules
Merchant response | Generally 3–5 business days from notification
Representment review | As prescribed by the relevant payment network/processor
Final resolution | Subject to applicable network/bank timelines
Security/risk hold | As determined based on risk and applicable contractual terms
Note: The above timelines are indicative. The actual timeline applicable to a particular transaction shall be governed by the relevant bank, payment processor, card network, UPI/payment system or other applicable rules.
Failure to provide evidence within the prescribed timeline may result in the chargeback being accepted or otherwise resolved against the merchant.
7. Merchant Risk Controls and Thresholds
Rudr Pay may monitor merchant performance through system-driven risk indicators, including:
Metric | Internal Risk Trigger | Possible Action
CTS | > 0.20% | Risk review / security deposit / settlement hold
FTS | > 0.20% | Enhanced monitoring / temporary suspension
Repetitive Chargebacks | More than 3 in 30 days | Comprehensive risk review
CTS = Chargebacks ÷ Total Transactions × 100
FTS = Fraud-related Claims ÷ Total Transactions × 100
These thresholds are internal risk-management triggers and may be revised from time to time based on transaction profile, banking partner requirements, regulatory requirements and overall risk exposure.
8. Security Deposit and Settlement Holds
8.1 Security Deposit
Where a merchant demonstrates elevated chargeback, fraud or operational risk, Rudr Pay may require a risk-based security deposit, subject to contractual terms and applicable law.
The amount and holding period shall be communicated to the concerned merchant.
8.2 Settlement Hold
Rudr Pay may temporarily hold or delay merchant settlement where there is a reasonable concern regarding:
Chargeback exposure
Fraud
Suspicious transactions
Regulatory/compliance concerns
Customer disputes
Banking partner requirements
Pending investigation
8.3 Account Restriction
Where material or systemic risk is identified, Rudr Pay may temporarily restrict transaction processing, onboarding, withdrawals, settlements or other services, subject to applicable contractual and legal requirements.
9. Fees and Penalties
9.1
A chargeback/dispute processing fee may be recovered from the concerned merchant where such fee is applicable under the merchant agreement or banking/payment partner arrangement.
9.2
Any actual chargeback fee, network fee, bank fee, processor fee, penalty or other third-party cost imposed on Rudr Pay due to a merchant-related transaction may be recovered from the responsible merchant, where contractually permissible.
9.3
Failure to submit required evidence within the prescribed timeline may result in loss of representment opportunity and/or recovery of the disputed amount.
9.4
Additional action may be taken in cases involving negligence, fraud, repeated disputes, misuse or violation of Rudr Pay’s terms and conditions.
10. Refund Policy During Chargeback Proceedings
10.1
A merchant should not initiate a voluntary refund for a transaction while an active chargeback/dispute exists for the same transaction, unless instructed or permitted by the relevant payment partner.
10.2
Where a refund is considered appropriate, the merchant should coordinate with Rudr Pay/payment partner before processing the refund.
10.3
If a merchant independently processes a refund while the same transaction is being recovered through chargeback, resulting duplicate payment or financial loss may be recovered from the merchant.
11. Dispute Resolution and Merchant Appeal
A merchant who believes that a chargeback or risk action has been incorrectly applied may submit a written appeal within 15 calendar days from the date of notification, unless a different period is specified by the applicable banking/payment partner.
Grievance / Risk Contact
Rudr Payments Tech Pvt. Ltd.
Brand: Rudr Pay
Name: __________________________
Designation: ____________________
Email: _________________________
Address: _______________________
Appeals should include:
Dispute Reference ID
Merchant ID (MID), where applicable
Transaction ID
Transaction date and amount
Supporting documentation
Clear grounds for contesting the decision
Appeals submitted after the prescribed period or without adequate supporting information may not be considered.
12. Compliance and Record Retention
12.1
Rudr Pay shall seek to operate its dispute-management processes in accordance with applicable laws, regulatory requirements, banking partner requirements and payment-network rules.
12.2
Transaction and dispute records shall be retained for the period required under applicable law, regulatory requirements, contractual arrangements and internal record-retention policies.
12.3
Rudr Pay may cooperate with banks, payment networks, regulators, law-enforcement authorities and other competent authorities in relation to legitimate investigations and dispute matters.
13. Policy Amendments and Governance
This Chargeback Policy may be reviewed periodically by Rudr Pay’s management, risk and compliance functions.
Amendments may be made based on:
Regulatory changes
Banking partner requirements
Payment-network rule changes
Internal risk assessments
Audit findings
Fraud trends
Merchant transaction behaviour
Operational requirements
Updated versions may be communicated through official communication channels and shall become applicable from the effective date specified in the relevant notice.
14. Merchant Declaration
All merchants, retailers, distributors, master distributors, institutional partners and other entities onboarded with Rudr Pay are required to acknowledge and comply with this Chargeback Policy.
By accepting this Policy, the merchant confirms that they have read, understood and agreed to the applicable chargeback procedures, evidence requirements, risk controls, settlement adjustments, liabilities and dispute-resolution mechanisms.
A digital or physical acknowledgement may be obtained during onboarding or whenever a material revision to this Policy is introduced.
ANNEXURE A
Chargeback Response Submission Format
1. Merchant Details
Merchant Name: __________________________
MID / Merchant ID: ______________________
Registered Email: ________________________
Contact Number: _________________________
2. Transaction Details
Transaction ID: __________________________
Date & Time: _____________________________
Transaction Amount: ______________________
Customer/Cardholder Name: _______________
Chargeback Reason Code: __________________
3. Response
Do you Accept or Contest the Chargeback?
☐ Accept
☐ Contest
Explanation:
4. Supporting Documents
Where applicable:
Customer invoice/billing receipt
Order confirmation
Delivery confirmation
Service completion proof
Customer acknowledgement
OTP/authentication records
System/app logs
Customer communication
Email/chat records
Refund proof
Other relevant documents
5. Declaration
“I hereby declare that the information and documents submitted by me are true, complete and accurate to the best of my knowledge and belief.”
Date: ____________________
Authorized Signatory: ____________________
Designation: _____________________________
ANNEXURE B
Common Chargeback / Dispute Categories
The following are common dispute categories. Actual reason codes may vary depending upon the applicable payment network, bank, payment processor or transaction type.
Category | Description
Unauthorized Transaction | Customer does not recognize or authorize the transaction
Fraudulent Transaction | Transaction alleged to be fraudulent
Service Not Received | Customer claims that goods/services were not received
Service Not as Described | Goods/services differ materially from the description
Duplicate Transaction | Same transaction processed more than once
Incorrect Debit | Incorrect amount or technical debit
Refund Not Received | Customer claims an agreed refund was not received
Technical Error | Transaction affected by a technical or processing issue
Note: Applicable reason codes may change from time to time. The latest applicable codes shall be determined by the relevant payment network, bank or payment processor.
ANNEXURE C
CTS / FTS Calculation
1. Chargeback-to-Sale (CTS) Ratio
Formula:
CTS (%) = (Number of Chargebacks ÷ Total Transactions) × 100
Example:
If a merchant has 5 chargebacks out of 2,000 transactions:
CTS = (5 ÷ 2,000) × 100 = 0.25%
An elevated CTS may result in enhanced monitoring or other risk controls.
2. Fraud-to-Sale (FTS) Ratio
Formula:
FTS (%) = (Number of Fraud-related Claims ÷ Total Transactions) × 100
Example:
If a merchant has 12 fraud-related claims out of 1,500 transactions:
FTS = (12 ÷ 1,500) × 100 = 0.80%
An elevated FTS may result in additional verification, settlement hold, account restriction or other appropriate risk action.
ANNEXURE D
Glossary
Term | Definition
Chargeback | A transaction reversal/dispute process initiated through the applicable issuing bank/payment network
CTS | Chargeback-to-Sale ratio
FTS | Fraud-to-Sale ratio
Issuing Bank | Bank/payment institution associated with the customer’s payment instrument
Acquiring Bank | Bank/payment institution processing transactions for the merchant
Representment | Process of contesting a chargeback by submitting supporting evidence
Arbitration | Escalated dispute-resolution process under applicable payment-network rules
Settlement Hold | Temporary retention of settlement funds to manage potential risk
Reason Code | Code/category identifying the reason for a dispute
Merchant ID | Identification number assigned to a merchant
Dispute | A complaint or claim concerning a transaction
ANNEXURE E
Merchant Acknowledgement and Declaration
We, the undersigned, hereby acknowledge that we have received, reviewed and understood the Rudr Pay Chargeback Policy.
We agree to comply with the applicable chargeback procedures, documentation requirements, response timelines, risk controls, settlement adjustments and other obligations specified in this Policy and the applicable Merchant/Partner Agreement.
We understand that failure to comply with the Policy may result in chargeback recovery, settlement adjustment, risk review, temporary restriction, suspension or termination of services, subject to applicable contractual terms and law.
Merchant Name: ______________________________
MID / Merchant ID: ___________________________
Authorized Representative: ____________________
Designation: __________________________________
Signature: ____________________________________
Date: ________________________________________
Company Seal: _________________________________
Rudr Payments Tech Pvt. Ltd.
Brand: Rudr Pay
Website: www.rudrpay.com
Support: support@rudrpay.com
Effective Date: __________________
Version: 1.0