Put Chargeback lifecycle back in order

THE DRILL AS TEXT

1. In Chargeback lifecycle, what happens first, and what follows?
   • Maya disputes the charge — Maya tells Bank Alfa she does not recognise the EUR 42.50 booking on her statement. The issuer records the claim and, for many claim types, first asks whether she has tried to resolve it with the merchant directly.
   • Bank Alfa raises a chargeback with a reason code — The issuer sends a chargeback record into the network carrying a reason code — the claim's category, such as 'transaction not recognised' or 'goods not received'. The reason code fixes what evidence can answer it. Many issuers also re-credit the cardholder provisionally while the case runs.
   • Cardnet routes the chargeback to Meridian Bank — The network checks the chargeback is validly formed — reason code allowed, raised within the time limit its rules set — and delivers it to the acquirer that presented the original sale.
   • The disputed amount settles back through the network cycle — A chargeback is not only a case file — it is a money movement. In the next network settlement cycle the disputed amount is charged to the acquirer's net position and credited to the issuer's, reversing the direction the original sale settled in.
   • Meridian Bank debits Demo Coffee and asks for evidence — The disputed amount is pulled from the merchant's account while the case runs — in a chargeback, the money moves first and the argument follows. The acquirer passes the case to Demo Coffee with the reason code and a deadline to respond.
   • Demo Coffee responds with evidence — The merchant answers the reason code with proof: the signed receipt, the terminal's EMV chip data showing the card was present, and the catering delivery note. Evidence that does not address the reason code does not count, however thick the file.