This article will explain the difference between Chargeback Net Settlement and Invoicing with AndDone
How does Chargeback Net Settlement work with AndDone?
Net Settlement refers to the method of settling duns between AndDone and Sub-Merchants for amounts owed to AndDone including the chargeback amount and chargeback fee. As transactions process through payment networks, they settle and create a balance of funds that will be transferred to the Sub-Merchant's bank account. As payments return, it is the responsibility of the Sub-Merchant to return funds to AndDone, LLC - this is where net settlement becomes essential.
When the Net Settlement of chargebacks occurs, the platform identifies transaction that have returned. These amounts are owed to AndDone and are withheld against future payouts. This is done programmatically and requires no effort from the Sub-Merchant. This process occurs at Midnight (12:00 AM CST) and debits the Sub-Merchant account for the chargeback amount and chargeback fee, thus crediting the AndDone bank account.
How does Chargeback Invoicing work with AndDone?
At the end of each month, AndDone will prepare an invoice that reflects chargebacks owed by the Sub-Merchant to AndDone. This Chargeback amount includes:
- Chargeback Amount - the amount that was returned to the insured due to the insured disputing a charge. This amount is invoiced to the Sub-Merchant.
- Chargeback Fees - the costs associated with processing and returning a payment to the shopper.
- Chargeback Float - this is a one-time service fee in order to lend a payment amount to the Shopper from the AndDone bank account, instead of directly from the Sub-Merchant bank account.
When using chargeback invoicing, chargebacks are captured and recorded over the course of the month. Chargeback invoices can be paid directly within the Invoice Module in the Payments Portal or by downloading the PDF that is available in the Invoice Module and emailed to the Sub-Merchant. These two options will both be paid via Payment Link. Optionally, chargebacks may be paid via check or wire.
If you need assistance or have further questions, please contact our support team.