Overview

Glomo Payments IFSC Private Limited ("Glomo") is committed to ensuring secure and transparent payment processing for all its merchants and customers. This Standard Operating Procedure ("SOP") outlines Glomo's approach to managing chargebacks, merchant responsibilities, and the support provided to resolve disputes efficiently. It also details how Glomo assesses merchant risk and applies tiered measures to reduce financial and reputational exposure.

What Is a Chargeback?

A chargeback is the process by which a customer disputes a transaction on their account and asks their bank to reverse the charge. The account holder makes a chargeback request to their bank, and the account holder's bank demands the merchant to provide proof that the transaction was valid. If the merchant cannot prove it, the money is returned to the customer. Common triggers for chargebacks include:

• Unrecognized or unauthorized transactions

• Non-delivery of goods/services

• Duplicate or incorrect charges

• Suspected fraud

• 
  

Dispute

A chargeback dispute occurs when a merchant challenges a customer's chargeback request by providing evidence to prove that the transaction was valid. This may include proof of delivery, transaction records, or communication with the customer. The goal of the dispute is to recover the funds and prevent revenue loss from false or incorrect chargebacks. The transaction amount is reversed to the customer if the dispute is resolved in their favor. Chargebacks are initiated by the account holder's issuing bank and not Glomo. However, Glomo facilitates communication and evidence gathering between issuing banks and merchants/or their authorised partners to resolve the matter.

Merchant Responsibilities

All Glomo merchants are expected to:

• Maintain complete and accurate transaction records

• Clearly communicate return, refund, and dispute policies to customers

• Respond promptly to chargeback notifications

• Submit compelling documentary evidence in disputes

• Negligence in handling chargebacks can result in financial loss and reputational impact.

• 
  

Duties of Glomo

Glomo serves as an intermediary and does not determine the chargeback outcome. Its responsibilities include:

• Notifying merchants within 1 business day of chargeback receipt;

• Assisting merchants in compiling and submitting evidence;

• Communicating the decision once finalized by card networks or issuing banks;

Upon receiving a dispute, Glomo will collaborate with the merchant to gather necessary documentation. If the dispute is resolved in favor of the buyer, the merchant is required to reverse the transaction amount in full to the customer.

Dispute Timeframes

• Initiation: Customers must initiate any dispute within 180 days (as mandated under scheme rules) from the date of the transaction, otherwise the chargeback request will not be processed. For disputes related to non-receipt of goods or services, customers are advised to wait a minimum of 7 days from the payment date before initiating a dispute.

• Notification: Within 1 business day of Glomo receiving the dispute

• Response Window: 7 calendar days for merchants to contest

• Final Resolution: 60–90 days, depending on the card network or bank.

Please Note that failure to respond within the 7-day window by a merchant will result in the dispute being lost by default. As soon as a chargeback request is filed by the account holder's issuing bank, the disputed amount is either immediately debited from the merchant's settlement balance or withheld in reserve by Glomo until the dispute is resolved. This precautionary measure ensures that sufficient funds are available for reversal in case the chargeback is awarded to the customer.

Fees

A non-refundable fee may be charged to the merchant per chargeback, as per the agreement between Glomo and the merchant to cover processing and banking partner costs. Even if the dispute is resolved in the merchant's favor, the fee remains applicable.

Prevention Best Practices

Merchants are advised to proactively reduce chargebacks by:

• Using clear and recognizable billing descriptors

• Sending prompt order and delivery confirmations

• Offering responsive and empathetic customer support

• Transparently communicating order issues, delays, and refunds

Repeated Chargebacks & Consequences

Merchants with consistent chargeback ratios exceeding 1% may:

• Be placed under enhanced scrutiny

• Face reserve requirements, delayed settlements and/or transactional caps

• Be offboarded after due review and escalation

• Risk re-assessment and transaction limits may also be applied dynamically.

Chargeback Ratio = (Number of Chargebacks / Number of Transactions) × 100

For example, if a merchant has 10 chargebacks out of 1,000 transactions in a month, the chargeback ratio is 1%.

Contact

For assistance with disputes or this SOP clarifications kindly drop an email on support@glomopay.com.