cards

Chargeback lifecycle

Maya Chen disputes the EUR 42.50 charge from Demo Coffee Ltd. Bank Alfa raises a chargeback, Demo Coffee answers with evidence, and the case decides who bears the loss — through Cardnet, a fictional card network standing in for Visa/Mastercard-style networks. (SYNTHETIC / TRAINING ONLY)

Contributor Shubham Mathure19 July 2026

PAYMENTS SIGNAL · REFERENCE CARD

Actors

Maya Chen (cardholder)customer
Bank Alfa (issuer)bank
Cardnet (card network)infrastructure
Meridian Bank (acquirer)bank
Demo Coffee Ltd (merchant)customer

Messages

chargeback record
representment record

The sequence

#	Step	Route	Kind
1	Dispute raised — Maya disputes the charge	Maya Chen → Bank Alfa	message
2	Chargeback — Bank Alfa raises a chargeback with a reason code	Bank Alfa → Cardnet	message
3	Routed — Cardnet routes the chargeback to Meridian Bank	Cardnet → Meridian Bank	message
4	Settlement — The disputed amount settles back through the network cycle	Meridian Bank → Bank Alfa	settlement
5	DR merchant — Meridian Bank debits Demo Coffee and asks for evidence	Meridian Bank	posting
6	Evidence — Demo Coffee responds with evidence	Demo Coffee → Meridian Bank	message
7	Representment — Meridian Bank re-presents the transaction	Meridian Bank → Cardnet	message
8	Representment routed — Cardnet delivers the representment to Bank Alfa	Cardnet → Bank Alfa	message
9	Issuer review — Bank Alfa reviews the representment	Bank Alfa	internal
10	Reversal — The interbank chargeback settlement unwinds in the acquirer's favour	Bank Alfa → Meridian Bank	settlement
11	Case closed — The case closes — liability lands with the evidence	Meridian Bank	posting

Exception rails

Rail	Trigger	Where the money ends up	Next action
Accepted: no representment	Demo Coffee reviews the case and chooses not to contest — the cost of fighting outweighs EUR 42.50.	Back with Maya — her provisional credit becomes permanent. · The chargeback's movement stands; no further clearing follows.	Demo Coffee — Demo Coffee tightens its receipts and descriptors so the next statement line is recognisable.
Escalation: pre-arbitration	Bank Alfa reviews the evidence and still believes Maya's claim — it rejects the representment.	With Maya — arbitration upheld the chargeback, so her credit stands. · The chargeback's movement stands; arbitration fees settle separately under the network's rules.	Cardnet — Meridian Bank passes the outcome and fees to Demo Coffee under its acquiring agreement.