RohoPay
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Legal

Refund & Dispute Policy

Last updated: July 7, 2025

1. Overview

This policy governs how refunds, chargebacks, and payment disputes are handled on the RohoPay platform. It applies to all Merchants and is incorporated into the Terms of Service and Merchant Agreement.

Key principle: The Merchant is solely responsible for the fulfillment of goods/services and for all chargebacks, refunds, and associated fees arising from their Transactions.

2. Definitions

Chargeback
A reversal initiated by the Customer's Provider (mobile money operator, card network, bank) at the Customer's request.
Refund
A voluntary return of funds by the Merchant to the Customer, processed through RohoPay.
Dispute
Any challenge by a Customer to a Transaction, whether through a Provider chargeback or direct complaint.
Evidence
Documentation submitted by the Merchant to contest a chargeback (delivery proof, communication logs, terms acceptance, etc.).
Provider
The payment network processing the Transaction (Flutterwave, Relworx, Iotec, card schemes, banks).

3. Merchant Refund Obligations

  • Clear Policy: Merchants must publish a clear, accessible refund/return policy before checkout. It must specify: eligibility, timeframes, condition requirements, process, and contact method.
  • Timely Processing: Approved refunds must be initiated within 2 business daysof the decision. Refunds are processed to the original payment method.
  • Partial Refunds: Supported for partial returns or service adjustments.
  • Refund Fees: RohoPay does not charge additional fees for refunds. Original transaction fees are not refunded. Provider fees may apply per Provider policy.
  • No "Refund to Different Method": Refunds must go to the original payment instrument. Exceptions require RohoPay approval and enhanced verification.

4. Chargeback Process

4.1 Notification

When a chargeback is received from a Provider, RohoPay will:

  1. Notify the Merchant via email and dashboard alert within 24 hours.
  2. Provide: Transaction details, chargeback reason code, amount, deadline for evidence submission.
  3. Debit the chargeback amount + fee (UGX 50,000) from the Merchant's wallet or pending settlement.

4.2 Evidence Submission

Merchant must submit compelling evidence within 7 calendar days of notification. Late submissions may not be accepted by the Provider.

Required evidence varies by reason code:

  • Goods not received: Delivery confirmation (tracking, signature, photo), delivery address matching Customer.
  • Service not rendered: Service completion proof (access logs, usage data, signed work order).
  • Not as described: Product description, specs, photos, terms accepted by Customer.
  • Duplicate charge: Evidence only one Transaction was legitimate.
  • Fraud/unauthorized: AVS/CVV match, 3DS authentication, IP/device match to Customer history.
  • Subscription cancelled: Cancellation policy, proof Customer was notified, cancellation date vs charge date.

4.3 Representment

RohoPay submits evidence to the Provider on the Merchant's behalf. The Provider's decision is final. Outcomes:

  • Won: Funds (minus fee) returned to Merchant wallet/settlement.
  • Lost: Chargeback stands. Merchant bears the loss.
  • Pre-arbitration/Second chargeback: Additional evidence may be requested. Higher fees apply.

4.4 Chargeback Fees

  • RohoPay fee: UGX 50,000 per chargeback (covers representment processing).
  • Provider fees: Passed through at cost (varies by Provider and reason code).
  • Excessive chargebacks (>1% ratio): Additional monitoring, reserves, or termination.

5. Provider-Specific Notes

  • Mobile Money (Relworx, Iotec, Flutterwave Mobile Money): Chargebacks are rare but possible for unauthorized transactions. Customers must report to the MNO (MTN, Airtel) within their dispute window (typically 30-90 days). MNO decisions are final.
  • Card Payments (Flutterwave Cards, Visa/MC): Full chargeback rights under card scheme rules. Reason codes: 10.4 (fraud), 13.1 (not received), 13.3 (not as described), etc. Time limits: 120 days typically.
  • Bank Transfers: Generally irreversible. Disputes handled as fraud investigations with banks.

6. Fraud-Related Disputes

If a Customer reports fraud (e.g., "I was scammed by a fake site using your gateway"):

  1. Customer submits report via Fraud Report Form.
  2. RohoPay freezes Merchant' settlement pending investigation (max 14 days).
  3. RohoPay requests transaction details from Provider.
  4. If Merchant is found to be fraudulent (fake storefront, bait-and-switch, phishing):
  • Merchant Agreement terminated immediately
  • All pending settlements forfeited to cover victim refunds
  • Data shared with law enforcement and Providers
  • Merchant liable for all losses + legal costs

RohoPay does not guarantee recovery for victims. Recovery depends on: Provider policies, timing of report, and whether funds have already settled to Merchant's bank. Victims should ALSO report directly to the Provider (they receive the payment prompt) and file a police report.

7. Refund API

Merchants can initiate refunds programmatically via:

POST /api/v1/transactions/{reference}/refund
{
  "amount": 50000,           // optional; defaults to full amount
  "reason": "customer_request",
  "idempotency_key": "refund_abc123"
}

Refunds are subject to the same settlement hold as the original Transaction. Partial refunds supported. Refund webhook: transaction.refunded.

8. Dispute Best Practices for Merchants

  • Keep detailed records for minimum 2 years: orders, shipping, communications, terms acceptance.
  • Use clear descriptors on Customer statements (business name + support contact).
  • Implement 3D Secure for card payments (reduces fraud liability).
  • Verify Customer identity for high-value orders (phone, email, address).
  • Ship to verified addresses only; require signature for >UGX 500,000.
  • Communicate proactively: order confirmation, shipping updates, delivery confirmation.
  • Make cancellation easy for subscriptions (reduces "unauthorized" chargebacks).
  • Monitor chargeback ratio weekly; investigate root causes immediately.

9. Escalation

If a Merchant disagrees with RohoPay's handling of a dispute, they may escalate todisputes@rohopay.comwithin 5 business days. RohoPay will review and respond within 10 business days. Provider decisions remain final.

10. Changes

RohoPay may update this policy with 15 days' notice. Material changes require Merchant acknowledgment.

11. Contact

Questions? Email disputes@rohopay.com or support@rohopay.com.

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