11. Reef2Reef Marketplace Chargeback Policy
Reef2Reef
Marketplace (“R2R
Marketplace,” “R2R,” “we,” “us,” or “our”) uses Stripe to process
marketplace payments between buyers and sellers.
This policy explains what happens when a buyer disputes a
Marketplace payment directly with their bank, credit card company, or other payment provider.
11.1 Marketplace Disputes vs. Chargebacks
A
Marketplace dispute and a payment chargeback are not the same thing.
A
Marketplace dispute is opened through Reef2Reef
Marketplace and allows the buyer, seller, and R2R to attempt to resolve a transaction issue through the
Marketplace.
A chargeback or payment dispute occurs when a buyer contacts their bank or card issuer and challenges the payment directly.
Once a chargeback is initiated, the dispute is handled through the payment processor and applicable card network or financial institution.
11.2 Buyers Should Contact R2R First
When reasonably possible, buyers should attempt to resolve transaction problems through the seller and Reef2Reef
Marketplace before initiating a chargeback.
- This gives R2R an opportunity to review issues involving:
- Items not received
- Shipping delays
- Damaged shipments
- Livestock DOA claims
- Items significantly different from the listing
- Cancellations
- Refunds
- Other transaction problems
Nothing in this policy prevents a buyer from exercising rights available through their card issuer or applicable law.
11.2a Buyers Must Provide Accurate Information
Buyers who initiate a chargeback must provide truthful and accurate information to their bank or card issuer.
A buyer may not seek or retain more than one reimbursement for the same transaction.
For example, a buyer may not knowingly retain both:
- a refund from the seller or R2R; and
- funds returned through a chargeback
for the same loss.
R2R may investigate suspected chargeback abuse, fraudulent claims, or attempts to obtain duplicate reimbursement.
11.3 Seller Responsibility for Chargebacks
Sellers are responsible for accurately describing their listings, properly fulfilling transactions, complying with their stated policies, following R2R
Marketplace policies, and maintaining evidence relating to their transactions.
A seller may be financially responsible for a chargeback, refund, reversal, dispute fee, or other loss arising from or relating to the seller’s transaction, including claims involving:
- An item that was not shipped
- An item that was not delivered
- Incorrect or misleading tracking information
- An item materially different from its listing
- Incorrect items
- Shipping or packaging failures
- Livestock condition or DOA issues
- Failure to comply with the seller’s posted DOA policy
- Failure to provide an agreed refund
- Seller fraud or misrepresentation
- Violations of Marketplace policies
- Other circumstances reasonably attributable to the seller or fulfillment of the transaction
R2R may determine responsibility based on the facts and circumstances of each case.
Chargebacks caused primarily by unauthorized payment activity, stolen payment credentials, payment-processing fraud, or other circumstances not reasonably attributable to the seller may be handled differently at R2R’s discretion.
11.3a Authorization to Recover Seller Funds
By selling through Reef2Reef
Marketplace, the seller authorizes R2R, to the extent permitted by applicable law and our payment processor’s capabilities, to recover amounts for which the seller is responsible.
R2R may recover these amounts by one or more of the following methods:
- Reversing or recovering funds transferred to the seller’s connected Stripe account
- Deducting amounts from the seller’s available Marketplace or Stripe balance
- Offsetting amounts against future Marketplace sales
- Withholding or adjusting future payouts
- Applying reserves or amounts otherwise payable to the seller
- Requesting payment directly from the seller
- Using other recovery methods permitted by the Marketplace Terms, Stripe, or applicable law
A seller remains responsible for an amount owed even if sufficient funds are not immediately available in the seller’s
Marketplace or connected Stripe balance.
11.3b Payout Holds
When R2R becomes aware of a chargeback, suspected fraud, significant transaction dispute, or other financial risk, R2R may delay, hold, restrict, or adjust a seller’s pending payouts when reasonably necessary to investigate the matter or protect the
Marketplace from loss.
R2R may also temporarily restrict selling activity while a significant payment dispute is under investigation.
11.3c Seller Cooperation Required
When a chargeback is received, the seller must cooperate with R2R and provide requested information promptly.
Requested evidence may include:
- Shipping receipts
- Carrier tracking
- Delivery confirmation
- Signature confirmation
- Photographs or videos
- Screenshots
- The original listing
- Buyer/seller messages
- Livestock packaging information
- Shipping dates
- DOA photographs
- Seller policies
- Proof of replacement or refund offers
- Any other information relevant to the transaction
Because card issuers impose response deadlines, sellers may be required to provide evidence within a short period of time.
Failure to provide requested information may affect R2R’s ability to challenge the chargeback and may be considered when determining seller responsibility.
11.4 R2R May Challenge a Chargeback
R2R may submit transaction information and evidence to Stripe, the card network, and/or the buyer’s financial institution when we believe a chargeback should be challenged.
R2R does not guarantee that any chargeback will be successfully challenged.
The final decision may be made by the buyer’s bank, card issuer, card network, payment processor, or other financial institution involved in the dispute.
11.5 If a Chargeback Is Won
If disputed funds are returned and R2R previously recovered money from the seller, R2R will determine the appropriate amount to return or credit to the seller after accounting for any applicable fees, losses, adjustments, or other amounts owed.
11.6 If a Chargeback Is Lost
If the chargeback is decided in favor of the buyer, R2R may recover from the responsible seller:
The seller’s portion of the transaction
Refund amounts
Chargeback or dispute-related fees
Other direct transaction losses for which the seller is responsible under the
Marketplace Terms
R2R will not charge a seller for amounts for which the seller is not responsible under this policy or the
Marketplace Terms.
11.7 Chargeback Abuse
Chargebacks are an important consumer protection mechanism and buyers are entitled to use them when appropriate.
However, knowingly filing false claims, misrepresenting transaction facts, attempting to obtain duplicate reimbursement, or otherwise abusing the chargeback process may result in
Marketplace account restrictions or termination.
R2R may also provide transaction records and other relevant evidence in response to a disputed payment.
11.8 Account Restrictions
R2R may restrict, suspend, or terminate
Marketplace privileges when a buyer or seller demonstrates a pattern of:
- Fraudulent activity
- Excessive chargebacks
- Chargeback abuse
- Failure to fulfill transactions
- Failure to pay amounts owed to R2R
- Failure to cooperate with transaction investigations
- Other activity creating unreasonable financial or Marketplace risk
Any action will be based on the circumstances of the account and transaction history.
11.9 Relationship to Other Marketplace Policies
This Chargeback Policy should be read together with the Reef2Reef
Marketplace Terms of Service, Buyer Policies, Seller Policies, Livestock Policies, Shipping Policies, and DOA Policies.
If there is a conflict between this policy and applicable law, applicable law controls.
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