Chargeback Policy

Understanding chargebacks and dispute resolution

Last updated: December 15, 2024

This Chargeback Policy outlines the procedures and responsibilities related to payment disputes, chargebacks, and fraud complaints on the ReadFlow platform operated by Algonest Tech Pvt Ltd. This policy is in compliance with the Reserve Bank of India (RBI) guidelines, National Payments Corporation of India (NPCI) regulations, and the Payment and Settlement Systems Act, 2007.

1. Understanding Chargebacks

A chargeback is a reversal of a credit card or debit card transaction initiated by the cardholder through their issuing bank. Chargebacks are typically filed when:

  • The cardholder does not recognize the transaction
  • The product was not delivered or was significantly different from description
  • The transaction was unauthorized or fraudulent
  • The merchant failed to process a refund as promised
  • Duplicate charges were made
  • Technical errors occurred during payment processing

2. Marketplace Model and Responsibility

2.1 ReadFlow's Role as Marketplace Platform:

ReadFlow, operated by Algonest Tech Pvt Ltd, functions as a marketplace platform that facilitates transactions between buyers and registered sellers/merchants. Our platform responsibilities include:

  • Providing a secure platform for transactions
  • Processing payments through authorized UPI payment gateways
  • Facilitating communication between buyers and sellers
  • Maintaining transaction records and documentation
  • Coordinating chargeback investigations and resolution

2.2 Seller Responsibility:

Sellers registered on the ReadFlow platform are primarily responsible for:

  • Accurate product descriptions, images, and pricing
  • Timely order fulfillment and delivery
  • Product quality and authenticity
  • Processing returns and refunds as per policy
  • Responding to customer complaints and disputes
  • Bearing financial liability for valid chargebacks arising from their transactions

2.3 Seller Liability for Chargebacks and Refunds:

In a marketplace transaction, the seller shall bear full responsibility and financial liability for all chargebacks, refunds, and fraud-related issues arising from their products or transactions on the ReadFlow platform.

  • The seller is solely responsible for chargebacks resulting from non-delivery, delayed delivery, defective products, or products not matching the description
  • The seller shall bear the full transaction amount and any applicable dispute resolution fees
  • Any refunds initiated due to seller-side issues shall be the responsibility of the seller and may be adjusted against future settlements
  • In cases of fraud attributable to the seller, the seller agrees to indemnify and hold harmless ReadFlow and Algonest Tech Pvt Ltd from all losses, penalties, and claims
  • Upon request by ReadFlow, payment partners, banks, or regulatory authorities, the seller must promptly provide complete and accurate transaction records, invoices, and proof of delivery

3. Chargeback Process

Customer-Initiated Chargeback:

  1. The issuing bank notifies the payment gateway/acquiring bank
  2. ReadFlow receives a chargeback notification with details
  3. The disputed amount is temporarily debited from the settlement account
  4. ReadFlow investigates the transaction and gathers evidence
  5. Evidence is submitted to the payment gateway within the stipulated timeframe (typically 7-10 days)
  6. The bank reviews the evidence and makes a final decision
  7. If chargeback is upheld, the amount is refunded to the customer; if reversed, the amount is returned to ReadFlow

Required Documentation:

  • Order confirmation and invoice
  • Proof of delivery (signed delivery receipt, tracking information)
  • Communication records with the customer
  • Product descriptions and images
  • Refund/return policy acknowledgment
  • Any other relevant transaction evidence

4. Fraud Prevention and Detection

ReadFlow implements multiple fraud prevention measures for UPI transactions:

  • UPI PIN Authentication: All UPI transactions require secure PIN verification
  • Two-Factor Authentication: Additional security layer for payment authorization
  • Address Verification: Matching billing and delivery addresses
  • Velocity Checks: Monitoring unusual transaction patterns
  • Device Fingerprinting: Identifying suspicious devices
  • Risk Scoring: Automated fraud detection algorithms
  • Manual Review: High-value or suspicious transactions are manually verified
  • NPCI Compliance: Following National Payments Corporation of India security standards

5. Dispute Resolution Process

UPI Dispute Resolution:

When a payment dispute is filed for UPI transactions:

  • Disputes are handled as per NPCI guidelines for UPI transactions
  • Processing and investigation conducted by our team
  • Resolution provided within 7-10 business days
  • Customers will be notified of the outcome via email/SMS

6. Customer Rights and Responsibilities

Before Filing a Chargeback:

Customers are encouraged to:

  • Contact ReadFlow customer support first
  • Review our Refund and Return policies
  • Allow reasonable time for issue resolution (7-10 business days)

Note: Filing a chargeback should be a last resort. Most issues can be resolved faster through our customer support channels.

Valid Reasons for Chargeback:

  • Unauthorized transaction (card theft or fraud)
  • Product not received despite confirmed delivery
  • Product significantly different from description
  • Defective or damaged product with no resolution
  • Duplicate or incorrect charge amount
  • Refund promised but not processed within stated timeframe

Chargeback Abuse:

Filing false or fraudulent chargebacks ("friendly fraud") is a serious offense. Consequences include:

  • Immediate account suspension or termination
  • Blacklisting from the platform
  • Legal action and recovery of losses
  • Reporting to credit bureaus and law enforcement

7. Alternative Dispute Resolution

Before initiating a chargeback, customers can use our dispute resolution process:

  1. Contact Customer Support: Email info@readflow.in or call +91 7676717668
  2. File a Complaint: Submit a detailed complaint through your account
  3. Investigation: Our team investigates within 48-72 hours
  4. Resolution: We work to resolve the issue (refund, replacement, or compensation)
  5. Escalation: If unresolved, escalate to our Grievance Officer

8. Exceptions to Chargeback Policy

Chargebacks are not applicable in the following cases:

  • Buyer's remorse or change of mind (use return policy instead)
  • Product delivered as described but customer expectations differed
  • Delay in delivery within acceptable timeframes
  • Issues already resolved through refund or replacement
  • Chargebacks filed after 120 days from transaction date
  • Products explicitly marked as non-returnable (if applicable)

9. Regulatory Compliance

This Chargeback Policy complies with:

  • Reserve Bank of India (RBI): Guidelines on digital payments and customer protection
  • Payment and Settlement Systems Act, 2007: Regulations governing payment systems
  • NPCI Guidelines: UPI and RuPay chargeback procedures
  • Consumer Protection Act, 2019: Consumer rights and e-commerce regulations
  • Payment Card Industry Data Security Standard (PCI DSS): Security standards for card data

10. Contact Information

For chargeback-related queries or disputes:

Customer Support

+91 7676717668

Monday to Sunday, 9:00 AM - 9:00 PM IST

Email Support

info@readflow.in

Response within 48 hours

Registered Office:

Algonest Tech Pvt Ltd

Plumeria 17 Harloor Main Road

Bangalore, Karnataka, India

Important Notice: This policy is subject to change. We recommend reviewing it periodically.