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Chargeback comes from the English words «charge» (debit) and «back» (return), which literally means «return of funds back». This term refers to the procedure by which a bank refunds money to the payer after funds were mistakenly or fraudulently withdrawn from their account.

It is a consumer protection mechanism that allows the cancellation of credit or debit transactions and the return of funds if the customer did not authorize the purchase, did not receive the goods or services, or if billing errors occurred.

Participants in a chargeback

The chargeback process involves:

• Customer: Initiates the chargeback through the issuing bank (the bank that issued the card).
• Issuing bank: Conducts the investigation and, if necessary, refunds the money to the customer. In Israel, the issuing banks can be Isracard, CAL, MAX and few others.
• Merchant (seller): Must provide evidence of the legitimacy of the transaction. If the chargeback is justified, the merchant refunds the money to the bank.

Possible reasons for a chargeback

• The customer requested a refund because they did not recognize a charge in the bank statement or forgot about an actual payment.
• The goods or services were not provided by the merchant.
• Fraudulent charges were made on the card without the customer’s knowledge (the card was stolen or compromised).

Chargeback procedure

After the customer files a request, the issuing bank opens a case, determines the reason for the chargeback, and decides whether to return the money to the customer or leave it with the merchant. As part of the investigation, the bank will contact the merchant and request proof of service delivery.

In Israel, according to the Payment Services Law of 2020, if a transaction is considered an «insufficient documentation transaction» (i.e., made without the physical presence of the card, which applies to all online payments), the customer receives a full refund if they contact the issuing bank within 30 days of receiving the charge notification.

Thus, the law provides significant protection for the consumer but can also lead to fraud and cancellations of legitimate transactions where the customer actually received the agreed service. Therefore, merchants are advised to collect and keep evidence of goods or services provided to the customer, especially for large amounts (e.g., contracts, receipts, emails, delivery confirmations).

If the bank establishes that the funds were withdrawn from the customer’s card illegally, they will be returned to the customer and deducted from the merchant’s balance.

Risks for merchants

Frequent chargebacks can have serious consequences for merchants. The main risk is financial loss due to refunds to customers. However, that is not the only risk:

• Fines and fees: Banks may impose fines for each chargeback, increasing financial pressure on the business.
• Deterioration of banking relationships: Frequent chargebacks can damage relationships with acquiring banks. This can lead to higher fees, worse cooperation terms, or even termination of the contract.
• Risk of being blacklisted: A high chargeback rate can result in being added to blacklists of payment systems, making it difficult to work with new acquirers and other financial institutions.
• Loss of reputation: Frequent chargebacks can damage the merchant’s reputation, creating distrust among customers and partners.

Tips for prevention

To minimize chargeback risks, merchants should take the following measures:

• Use secure payment methods: Activate 3DS for payments — a two-factor authentication method where the bank asks the customer to confirm the payment via the banking app or by entering an SMS code.
• Improve communication with customers: Quick and transparent communication helps avoid misunderstandings. It is important to respond to customer inquiries promptly and provide full information about goods and services.
• Collect and store evidence: Systematically keep all documents confirming the provision of services or delivery of goods. This will help protect the business in case of a chargeback.
• Clear refund policy: A transparent and easy-to-understand return policy can reduce the number of chargebacks, as customers will know how to return a product or cancel a service.

Fees

The average fee charged for handling a chargeback is 50 ILS.

Display in the interface and documents

If a chargeback was requested for a payment, a new transaction with a negative amount and the label <span class="u-richtext-element" style="background-color: rgba(221, 94, 94, 0.4)">chargeback</span> will appear on the payments screen.

A refund document will also be created: a credit invoice and/or a receipt with a negative amount — depending on the business type and the type of the previously issued document.

If the business disputed the chargeback and the dispute was resolved in favor of the business, the funds will be returned. In this case, a new transaction with a positive amount and the label <span class="u-richtext-element" style="background-color: rgba(68, 203, 138, 0.5)">chargeback reverse</span> will appear on the payments screen.

A new income document will also be created: a receipt or a tax invoice/receipt — depending on the business type and document settings.

To allow customers to choose the quantity on the checkout page, go to <span class="u-richtext-element">Settings</span> ➙ <span class="u-richtext-element">Payment links</span> and enable the <span class="u-richtext-element">Manage quantity</span> option.

After that, when creating a payment link, you can set the minimum and maximum number of units a customer can select, as well as the total quantity available for all customers when paying via this link.

If the minimum number of units is set to 0 (zero), the customer will be able to exclude this item from the payment.

The remaining quantity is shown on the payment link tile. When the stock is depleted (equals zero), the payment link is automatically disabled.

If the total quantity is not set (that is, the customer can select any quantity without limits), an infinity symbol is displayed on the payment link.

Simultaneous purchase of the last item

When multiple customers try to purchase the last remaining items at the same time, the purchase will be successful for the customer who completes the payment first.

For example, if 5 units are left in stock and customer A tries to buy all 5, while at the same time customer B buys 2 units and completes the payment first, customer A will see a message that only 3 units are available.

The payment page supports languages: Arabic, English, French, German, Hebrew, Italian, Russian and Spanish.

The language is detected automatically based on the customer’s browser language, so each customer sees the payment page in their own language. If the browser language is not supported or cannot be detected, English will be set by default.

To manually control the language of the payment page, in the <span class="u-richtext-element">More</span> section of the payment link settings, change the <span class="u-richtext-element">Auto-detect (browser language)</span> option to the language you need.

The customer will then see the payment page in that language, regardless of their browser settings. The language switcher will still remain available on the checkout page.

The payment email notification is sent to the customer in the same language that was selected on the payment page at the time the payment was made. For example, if the payment page was opened in Hebrew, the email notification will also be sent in Hebrew. Example of a payment email notification.

Translation of additional fields

If you add custom fields to the payment page, their labels can be translated into all four languages. This makes the payment page convenient for a multilingual audience. For more details, see the article about additional fields.

Language control via API

For payments initiated from your website (i.e., not through payment links created in Allpay), the payment page language can be controlled via the API according to the documentation.

By default, automatic detection based on the browser settings applies.

After payment, customer receives an email notification about the payment. Make sure this feature is enabled in <span class="u-richtext-element">Settings</span> -> <span class="u-richtext-element">Notifications</span>

An email notification by itself is not a receipt.

The notification is sent in the same language that was selected on the payment page at the time the payment was made. For example, if the payment page was opened in English, the customer will receive the notification in English as well.

If you enable integration with EasyCount or Morning digital invoicing systems, the receipt will be created automatically, and a button for downloading it will be added to the notification.

Example of email notification

In Allpay, the plan is billed monthly. After registration, you get a 7-day trial period. All paid modules are charged to the internal balance, and once a month the outstanding amount is charged to the linked card.

Subscription fee and processing fees

The subscription fee and payment processing fees are different charges.

The subscription fee is charged to your card once a month. Payment processing fees are charged separately for each successful payment and are deducted from your payout.

Trial period and billing date

After registration, every client gets a 7-day trial period. At the end of the trial period, the system will charge the first payment for the next billing period.

The date of the first charge becomes the fixed monthly billing date for the plan. It does not change in the future.

For example, if you registered on March 10, the trial period will end on March 17. On that day, the system will charge the first payment for the next billing period. The following charges will take place on the 17th of each month.

How the internal balance works

All paid services and modules that you activate during the month are charged to the internal Allpay balance in <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Plan</span> → <span class="u-richtext-element">Billing</span>.

In the standard scenario, you do not need to top up the balance in advance. On the monthly billing date, the balance is charged for the next billing period. Immediately after that, the system charges this amount to the linked card, and the balance returns to zero.

If the card charge fails, the outstanding amount remains on the balance, and the balance stays negative until the debt is paid.

If a new module with a subscription fee is activated in the middle of a billing period, its cost is calculated proportionally to the time remaining until the next billing date.

If a module with a paid activation fee but no subscription fee is activated in the middle of a billing period, the activation fee is charged to the balance when the module is connected.

In some cases, the balance can be topped up in advance by bank transfer through support. This is usually used by companies that do not have a corporate card.

Canceling your Allpay subscription

You can cancel your subscription at any time. To do this, click “Disable all” in <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Plan</span>.

After cancellation, the service will continue to work and payments will continue to be processed until the end of the paid period. After that, the service will be disabled, and no new debt will be charged for the next billing period.

The “Disable all” button disables all paid services at once:

• the main payment processing service;
• the Subscriptions module;
• the Shopify module, if it was active;
• other paid modules, if they were active.

If you want to disable only one module, you need to do this in <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Payment modules</span>.

After the service is disabled, your account and payment history are saved. If needed, you will still be able to log in to your account and view previous transactions. The service can always be activated again to resume accepting payments.

If there is an outstanding debt on the balance when the service is reactivated, it will be paid immediately after the service is activated or a new card is linked.

Failed charges

If the system cannot charge the card, an error message will appear in the Allpay interface. An email is also sent for each failed charge.

The system makes four charge attempts in total:

Attempt 1 — the first failed charge.

Attempt 2 — 2 days after the first attempt.

Attempt 3 — 10 days after the first attempt.

Attempt 4 — one month after the first attempt.

Until the final charge attempt, the service continues to work as usual. If the debt is not paid after the fourth attempt, payment processing will be suspended.

The unpaid debt will remain on the internal balance. It must be paid before you can continue using the service.

Four charge attempts during the month give you enough time to fix the card issue without losing the ability to accept payments.

You can view the charge attempt history in <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Plan</span> → <span class="u-richtext-element">Payment methods</span>.

How to pay an outstanding debt

To pay an outstanding debt, add a valid card in <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Plan</span> → <span class="u-richtext-element">Payment methods</span>, or open the menu of an already linked card by clicking the three dots and select “Try again”.

Before trying again, make sure the reason for the failed charge has been fixed. For example, check that the card has enough funds, is not blocked, and is allowed for online payments.

Payment methods

The card you added during registration becomes the main payment method for the plan.

In <span class="u-richtext-element">Settings</span> → <span class="u-richtext-element">Plan</span> → <span class="u-richtext-element">Payment methods</span>, you can:

• delete a card;
• add a backup card;
• set another card as the main payment method;
• manually retry a charge if there was a card payment error.

If several cards are added, the system first tries to charge the card marked as the main one. If the charge from the main card fails, the system automatically tries to charge the backup card.

The backup card is used only if the charge from the main card fails.

For example, you can add a new card and set it as the main payment method. In this case, the previous card will become the backup card.

Allpay lets you display the price in one currency that is convenient for the customer, while charging in another currency.

For example, for customers in Canada you can display the price in CAD, while charging in ILS, so the funds are paid out to the merchant bank account without additional conversion.

In this scenario, the customer will see the amount in two currencies on the payment page, for example: 100 CAD (226 ILS). The actual charge will be made in Israeli shekels (ILS).

This format helps to:

• show the customer the price in a currency they understand;
• clearly explain which currency will be charged;
• reduce confusion when the customer later sees the charge in their bank statement.

Exchange rates are taken from Google Finance at the moment the payment page is opened.

Payment currency

Payment currency (parameter <span class="u-richtext-element">currency</span>) is the currency in which the actual charge is made and the funds are paid out to the merchant bank account.

The customer’s card currency does not matter — after the charge, the customer’s bank will convert the amount using its own exchange rate if the card is denominated in another currency.

By default, after registering in Allpay only ILS payment currency is available. You can enable USD and EUR according to this instruction.

Supported payment currencies

Euro — EUR

Israeli new shekel — ILS

United States dollar — USD

Валюта отображения

Display currency (parameter <span class="u-richtext-element">currency_display</span>) is the currency shown to the customer on the payment page.

Send this parameter only when the display currency is different from the payment currency.

If <span class="u-richtext-element">currency_display</span> is provided:

• the <span class="u-richtext-element">price</span> must be sent in the display currency;
• Allpay automatically converts the amount from <span class="u-richtext-element">currency_display</span> to <span class="u-richtext-element">currency</span> using current Google Finance exchange rate;
• the customer is always charged in the payment currency (<span class="u-richtext-element">currency</span>).

For example, for Europe customer you can display the price in EUR and charge in ILS. Or for customer from Canada display the price in CAD and charge in USD.

Supported display currencies

Australian dollar — AUD

Azerbaijani manat — AZN

Canadian dollar — CAD

Chinese Yuan — CNY

Euro — EUR

Georgian lari — GEL

Israeli new shekel — ILS

Kazakhstani tenge — KZT

Norwegian krone — NOK

Pound sterling — GBP

Russian ruble — RUB

Thai baht — THB

Ugandan shilling — UGX

United Arab Emirates dirham — AED

United States dollar — USD

Ukrainian hryvnia — UAH

If the currency you need is not in the list, please contact support.

Examples of using <span class="u-richtext-element">currency_display</span> in API requests

Send <span class="u-richtext-element">currency_display</span> only when you need to display the price in one currency but charge in another.

Example 1

{  
  "items": [
    {
      "name": "Product name",
      "price": "100",
      "qty": "1",
      "vat": "0"
    }
  ],
  "currency": "USD",
  "currency_display": "CAD"
  }

‍

Allpay will convert 100 CAD to USD and the customer will be charged in USD.

At the time this article was written: 100 CAD = 72 USD, so the charge will be 72 USD.

If the account is not approved for USD, the system will automatically convert the amount to ILS (the default currency).

Example 2

{  
  "items": [
    {
      "name": "Product name",
      "price": "100",
      "qty": "1",
      "vat": "0"
    }
  ],  
  "currency_display": "CAD"
  }

‍

Because <span class="u-richtext-element">currency</span> is not provided, 100 CAD will be converted to ILS (the default currency), and the customer will be charged in ILS.

Example 3

{  
  "items": [
    {
      "name": "Product name",
      "price": "100",
      "qty": "1",
      "vat": "0"
    }
  ],  
  "currency": "CAD"
  }

‍

This request is invalid because CAD cannot be used as a payment currency. However, the system will not return an error. Instead, it will convert CAD to ILS (the default currency) and charge the customer in ILS.

To test different currency combinations, use the Allpay API tester.

Allpay supports Visa, Mastercard, American Express, Diners, Discover, JCB, and Isracard bank cards.

Current rates are listed at pricing page.

The commission rate depends on four factors:

1. Business turnover

The higher the average monthly turnover of the business, the lower the commission rate.

Average monthly turnover is calculated as the total amount of all successful payments over the last 3 months, minus refunds and chargebacks, divided by 3.

If payments were made in different currencies, the turnover is converted to ILS.

Turnover is recalculated automatically at the end of each day. If the business moves into a different turnover tier, the corresponding commission rate is applied automatically.

2. Card brand

Visa and Mastercard have lower rates.

American Express and Diners have higher rates because these brands are considered premium and provide cardholders with various benefits, which are paid for by the business.

3. Local or international payment

Payments made with cards or wallets issued in Israel have lower rates.

International payments follow a longer processing path before they are included in a payout, so the commission rate for them is higher.

4. Whether the card is a business or personal card

Transactions made with business cards may include an additional fee of 1.5% to 1.75%.

This fee is added by payment systems and issuing banks and does not depend on Allpay.

After a customer completes a payment, the funds are automatically transferred to your bank account. This process is called a payout.

There is no need to manually request transfers — Allpay automatically processes payouts according to the selected schedule.

Standard payout schedule

By default, payouts are made once per month.

All payments received during a calendar month are transferred on the 6th day of the following month. This option works well for most businesses, especially when daily transfers are not required.

The payout schedule is always available in your Allpay dashboard.

Weekly payouts

If you need to receive funds more frequently, you can activate the weekly payout option.

In this case, funds are transferred every week. An additional commission applies for this option.

What is deducted from payouts

Payouts are made after deducting the payment provider commission and VAT.

In your dashboard, you can see transaction history, payout amounts, and detailed calculations.

Allpay provides a transparent and predictable payout process so you can better manage your business cash flow.

Read the detailed article about payouts.