International Chargebacks
Understand how cross-border chargebacks differ from domestic ones, the role of 3D Secure authentication, and how to prevent and respond to international disputes.
Accepting cross-border payments opens up new markets, but it also carries a higher risk of disputes and fraud-related chargebacks. This page explains what makes international chargebacks different from domestic ones, and how to reduce your exposure to them.
An international (or cross-border) chargeback is a request — raised by a cardholder or their issuing bank — to reverse a transaction made using a card issued outside India. It's raised for the same broad reasons as a domestic chargeback: the cardholder didn't authorise the transaction, or is dissatisfied with the goods or services received.
Disputes in International Payments
For a dispute raised on an international payment, the amount deducted from your account is based on the currency conversion rate applicable on the day the dispute was created — not the rate on the day the original payment was made. This rate depends on your processing bank and may differ from the original transaction's conversion rate.
An international chargeback involves a transaction made in a different country from the one where the issuing bank operates. This adds complexity that domestic chargebacks don't have:
- Currency conversion — the disputed amount is calculated using the conversion rate at the time of the dispute, which can differ from the original transaction amount.
- Cross-border regulations — the case may be subject to different laws depending on the country of the merchant, the cardholder, or the delivery destination.
is an additional authentication step — such as an OTP, PIN, or static password — applied to card-not-present (CNP) transactions to verify the cardholder's identity. It's designed to reduce fraud risk for both you and your customer.
Non-3DS transactions, where this additional authentication step isn't used, carry a higher risk of being reported as fraudulent or charged back. Since the cardholder isn't independently verified, you have very limited grounds to contest a chargeback on a non-3DS transaction that's flagged as fraud.
Participation in 3DS programs is ultimately determined by the card network and the card-issuing institution, not by you. However, if you accept cross-border card payments — particularly non-3DS ones — you should weigh this risk carefully as part of your international payments strategy.
- Clearly communicate transaction terms, including price, taxes, and fees, along with your refund and return policy, before checkout.
- Confirm that the cardholder authorised the transaction, especially for high-value cross-border orders.
- Ensure the goods or services delivered match what was advertised.
- Respond to customer queries or complaints promptly, before they escalate to a dispute.
If you receive an international chargeback, respond promptly with documentation that supports your case. Depending on the reason for the dispute, this may include:
- Proof of cross-border delivery
- Customs clearance copies
- Proof that the cardholder authorised the transaction
- A copy of the terms and conditions shared with the customer at the time of purchase
See
for the full list of evidence documents accepted for each chargeback reason code.If you're unable to resolve the dispute through this process, you may need to seek independent legal advice.
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