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🇮🇳 India Payment Gateway Rules

The Complete Chargeback Guide for Indian Payments

Everything you need to know about chargebacks in India — how they work under RBI and NPCI rules, how to raise one, how to dispute one as a merchant, and how AllUpiPay protects you throughout the process.

RBI Timeframe
30 – 90 Days
Success Rate (Customer)
~72% Resolved
Chargeback Fee
₹250 – ₹1,500
Governed By
RBI · NPCI · VISA · MC
1

What is a Chargeback?

A chargeback is a forced reversal of a payment transaction initiated by the cardholder's bank (issuing bank) on behalf of the customer. Unlike a voluntary refund issued by the merchant, a chargeback is a formal dispute mechanism regulated by payment networks, card schemes, and — in India — by the Reserve Bank of India (RBI).

Key distinction: A chargeback is not the same as a refund. A refund is a voluntary action by the merchant. A chargeback is a compulsory reversal enforced by the banking system.
2

RBI & NPCI Regulatory Framework

In India, the chargeback ecosystem is shaped by multiple regulatory and operational authorities including the RBI and NPCI.

RBI Zero Liability Policy: Under RBI's guidelines, customers bear zero liability for unauthorized transactions reported within 3 working days.
3

Chargeback vs Refund — Key Differences

Many customers confuse chargebacks with refunds. They serve a similar outcome but operate through different mechanisms.

4

Common Chargeback Reason Codes in India

10.4
Fraudulent Transaction
Used when the cardholder did not authorize the transaction.
13.1
Merchandise Not Received
Payment made but goods/services never delivered.
5

Timelines & Deadlines

Day 0
Transaction Occurs
Dispute window begins.
30 – 120 Days
File Chargeback
Window to file with your bank.
6

Chargeback Fees & Penalties

💳
Credit Card
₹500 – ₹1,500
7

How to File a Chargeback as a Customer

Always attempt to resolve directly with the merchant first before filing with your bank.

8

How to Dispute a Chargeback as a Merchant

Challenge illegitimate chargebacks by submitting a representment with evidence through your dashboard.

9

Filing a Chargeback via AllUpiPay

AllUpiPay provides a built-in dispute management system for both customers and merchants.

10

Chargeback Prevention Tips

  • Enable 3D Secure (3DS).
  • Use recognizable billing descriptors.
  • Send clear confirmation emails.
11

UPI Disputes — Special Rules

UPI disputes fall under NPCI's UDIR framework with a 30-day dispute window.

12

Frequently Asked Questions

How long does a chargeback take in India? +
Typical resolution takes 30–90 days.
Z

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