Effective Date: September 28, 2025
1. Comprehensive Authority and Zero Tolerance Overview
Pocketsflow operates under absolute authority to manage all disputes, chargebacks, and payment issues. Our platform, operated by Pocketsflow, Inc., maintains complete discretion over all financial matters and will take immediate action against sellers who generate disputes or chargebacks.
1.1 Seller Monitoring and Review System
All sellers are subject to comprehensive dispute monitoring:
- Real Time Dispute Tracking: Continuous monitoring of all customer complaints and payment issues
- Weekly Chargeback Analysis: Detailed review of chargeback patterns and seller risk profiles
- Monthly Performance Audits: Comprehensive evaluation of customer satisfaction and dispute resolution
- Quarterly Risk Assessment: Full review of seller dispute history and platform risk exposure
- Immediate Action Authority: Instant suspension or termination upon reaching risk thresholds
2. Refunds
Pocketsflow encourages sellers to make their own decisions about refund policies based on their business needs and requirements. If you choose to offer refunds, they can be issued at any time via the Pocketsflow dashboard. The refunded amount (minus our platform fee) will be deducted from your next payout.
However, Pocketsflow reserves the right to issue refunds within 60 days of purchase, at our discretion, to prevent chargebacks. If you choose to have a “no refunds” policy, be aware that customers can issue chargebacks at any time against their purchases.
3. Chargebacks
A chargeback (also called charge reversal or charge dispute) happens when a customer asks their credit card provider to cancel a charge on their credit card statement. Chargebacks can be made for various reasons, typically for fraud or dissatisfaction with a purchase.
3.1 Our Responsibility
Generally, Pocketsflow is responsible for handling any chargebacks made against your sales. In most cases, we will offer a full refund on your behalf and deduct the refunded amount (minus our platform fee) plus a $15 dispute fee from your next payout.
3.2 Common Chargeback Reasons
Chargebacks can happen for several reasons:
- Someone purchased a product using a stolen credit card, and the credit card provider is now canceling that charge
- A customer does not recognize the charge on their credit card statement and asks for the charge to be reversed
- A customer believes they have not received the product they paid for and, instead of asking you for a refund, contacts their credit card provider to cancel the charge
- Fraudulent activity or unauthorized transactions
- Product not delivered as described or expected
4. Dispute Resolution Process
When a chargeback occurs, we will provide as much information as we can to the payment provider to make a case on your behalf. However, this is as much as we can legally do. After making our case, it’s up to the payment provider to decide the outcome.
4.1 Our Defense Process
- We receive notification of the chargeback from the payment processor
- We gather relevant transaction information and evidence
- We submit a comprehensive response to the payment provider including:
- Transaction details and receipts
- Product delivery confirmation
- Customer communication records
- Terms of service and refund policy
- The payment provider reviews the case and makes a final decision
5. Seller Responsibilities
To minimize chargebacks and support our dispute resolution efforts, sellers should:
- Provide clear and accurate product descriptions
- Deliver products promptly as promised
- Maintain responsive customer service
- Keep records of customer communications
- Use recognizable business names on transaction descriptors
- Have clear refund and return policies
6. High Risk Account Management
If your store has too many chargebacks or an unusually high chargeback rate, our team may intervene and:
- Require additional verification or documentation
- Implement enhanced monitoring of your account
- Hold funds for extended periods
- Suspend your account temporarily or permanently
- Terminate your seller agreement
6.1 Chargeback Thresholds
We monitor accounts that exceed the following thresholds:
- Chargeback rate above 1% of total transactions
- More than 5 chargebacks in a 30 day period
- Chargeback amount exceeding $1,000 in a single month
7. Fees and Financial Impact
7.1 Chargeback Fees
- Dispute Fee: $15 per chargeback (deducted from seller earnings)
- Refund Amount: Full transaction amount (minus platform fee)
- Processing Fees: Original processing fees are not refunded
7.2 Fee Recovery
If we successfully dispute a chargeback and win the case, the dispute fee will be refunded to your account. However, processing fees and administrative costs are generally not recoverable.
8. Prevention and Best Practices
8.1 For Sellers
- Use clear, descriptive product titles and descriptions
- Provide multiple product images or previews when possible
- Respond promptly to customer inquiries
- Issue refunds proactively when appropriate
- Keep detailed records of all transactions
- Use fraud detection tools and verify high value orders
8.2 For Buyers
- Contact the seller first before initiating a chargeback
- Review refund policies before purchasing
- Keep records of purchase confirmations and communications
- Use secure payment methods and verify website authenticity
9. Dispute Timeline
- Chargeback Notification: Within 1 to 2 business days of receipt
- Evidence Gathering: 5 to 7 business days
- Response Submission: Within 10 business days
- Payment Provider Decision: 30 to 60 days (varies by provider)
- Final Resolution: Up to 90 days for complex cases
10. Communication and Updates
We will keep affected sellers informed throughout the dispute process via:
- Email notifications for all major updates
- Dashboard alerts and status updates
- Monthly chargeback reports for high volume sellers
- Direct communication for complex cases
11. Appeals and Escalation
If you disagree with a chargeback decision or our handling of a dispute:
- Submit an appeal through our support system within 30 days
- Provide additional evidence or documentation
- Our senior team will review the case within 14 business days
- Final decisions will be communicated via email
12. Legal and Regulatory Compliance
Our disputes policy complies with:
- Payment Card Industry (PCI) standards
- Federal Trade Commission (FTC) guidelines
- Consumer protection laws
- Payment processor requirements
- International chargeback regulations
13. Policy Updates
We may update this disputes policy from time to time to reflect changes in:
- Payment processor requirements
- Legal and regulatory changes
- Industry best practices
- Platform operational improvements
Material changes will be communicated to all sellers at least 30 days in advance via email and platform notifications.
14. Seller Approval and Rejection Based on Dispute Risk
14.1 Pre Approval Dispute Assessment
All seller applications undergo comprehensive dispute risk evaluation:
- Historical Dispute Analysis: Review of previous marketplace dispute history
- Chargeback Risk Assessment: Evaluation of potential chargeback likelihood
- Customer Service Capability: Assessment of seller’s ability to handle customer issues
- Product Quality Review: Evaluation of products for dispute potential
- Communication Standards: Assessment of seller professionalism and responsiveness
14.2 Immediate Rejection Criteria
We will immediately reject sellers who demonstrate:
- History of high dispute or chargeback rates on any platform
- Poor customer service records or negative reviews
- Selling high risk or dispute prone product categories
- Inadequate customer support infrastructure
- Previous violations related to customer satisfaction
- Failure to demonstrate dispute resolution capabilities
15. Contact Information and Dispute Support
For questions about disputes, chargebacks, or this policy:
- Email: chain@pocketsflow.com
- Business Entity: Pocketsflow, Inc.
- Registration: Delaware, USA
- Jurisdiction: Delaware, USA
- Dispute Inquiries: Priority response within 12 hours
- Emergency Chargebacks: Immediate response within 2 hours
15. Definitions
- Chargeback: A reversal of a credit card transaction initiated by the cardholder’s bank
- Dispute: A formal challenge to a transaction made through the payment processor
- Representment: The process of challenging a chargeback with evidence
- Liability Shift: Transfer of financial responsibility for fraudulent transactions
- Reason Code: Standardized codes indicating the reason for a chargeback
Note: This policy is subject to the terms and conditions of your Seller Agreement with Pocketsflow. In case of any conflicts, the Seller Agreement takes precedence.