---
title: "Afterpay and Clearpay chargebacks"
description: "Learn about the chargeback process with Afterpay, Cash App Afterpay, and Clearpay, and the guidelines to defend a chargeback."
url: "https://docs.adyen.com/risk-management/chargeback-guidelines/afterpay-chargebacks"
source_url: "https://docs.adyen.com/risk-management/chargeback-guidelines/afterpay-chargebacks.md"
canonical: "https://docs.adyen.com/risk-management/chargeback-guidelines/afterpay-chargebacks"
last_modified: "2026-06-01T15:33:16+02:00"
language: "en"
---

# Afterpay and Clearpay chargebacks

Learn about the chargeback process with Afterpay, Cash App Afterpay, and Clearpay, and the guidelines to defend a chargeback.

[View source](/risk-management/chargeback-guidelines/afterpay-chargebacks.md)

**New dispute flow**\
Starting August 25, 2025 the dispute flow starts with a **Notification of Chargeback** instead of a **Request for Information**.

* New disputes opened on or after the starting date will follow the new flow described on this page.
* Open disputes that on the starting date are still in the 13-day defense period will continue in the old flow until finalized.

***

This chargeback information applies to **Afterpay** in Australia, Canada, and New Zealand, **Cash App Afterpay** in the United States, and **Clearpay** in the United Kingdom. We will refer to this collectively as *Afterpay/Clearpay*.

Shoppers can initiate chargebacks directly with Afterpay/Clearpay up to 120 days after the payment, cancellation, or expected receipt of goods or services. When Afterpay/Clearpay opens a dispute, you have **13 days** to defend or accept the dispute. If you do not respond within 13 days, or if you accept the dispute, the dispute is lost and your account is debited for the chargeback amount. If you defend the dispute, Afterpay/Clearpay has 30 days to make their decision.

The Afterpay/Clearpay chargeback flow is as follows:

1. [Notification of Chargeback](#notification-of-chargeback)
2. [Information Supplied](#information-supplied)
3. [Chargeback](#chargeback)

![Diagram of the Afterpay/Clearpay chargeback flow](/user/pages/docs/10.risk-management/21.chargeback-guidelines/afterpay-chargebacks/afterpay-noc-flow.png)

## Liability for fraud disputes

Before approving a payment, Afterpay/Clearpay performs risk checks on the shopper. If successful, Afterpay/Clearpay takes on the full fraud risk for the payment. This means that if a fraud dispute occurs, the liability lies with Afterpay/Clearpay and you will not be charged.

However, it is not always clear if a dispute is a fraud dispute, because there is no standard dispute reason code for this situation. Initially a **NotificationOfChargeback** journal is booked, followed by **DisputeWonWithoutChargeback** if it turns out fraud was involved.

## Notification of Chargeback (NoC)

The dispute process starts with a Notification of Chargeback (NoC) from Afterpay/Clearpay. The **NotificationOfChargeback** journal is booked, and we send you a [NOTIFICATION\_OF\_CHARGEBACK](https://docs.adyen.com/api-explorer/Webhooks/latest/post/NOTIFICATION_OF_CHARGEBACK) webhook.

The 13-day period in which you can defend the dispute starts now.

You can review the dispute, including the [dispute reason](#dispute-reasons), in your [Customer Area](https://ca-test.adyen.com/) > **Revenue & risk** > **Disputes**. After your review, you can decide to either:

* Accept the chargeback in your [Customer Area](https://ca-test.adyen.com/) or using the [Disputes API](/risk-management/disputes-api). The dispute is lost and you can no longer defend it. The **DisputeDefensePeriodEnded** journal is booked, and a [Chargeback](#chargeback) is opened.
* Defend the dispute. You need to upload the relevant defense documents in your [Customer Area](https://ca-test.adyen.com/) or using the [Disputes API](/risk-management/disputes-api).\
  See [Defense requirements](/risk-management/understanding-disputes/dispute-reason-codes#defense_requirements) for file formats and document types. Be sure to address the dispute reason and provide information that supports your position. An overview of the order details is not enough.

There is no opportunity later in the process to provide information or to update information you provided.

### Refunded disputed payments

If you refund the disputed payment, the **DisputeDefensePeriodEnded** journal is booked, and the dispute is closed. No chargeback takes place because you already returned the disputed payment.

## Information Supplied

Adyen received your defense documents and forwarded them to Afterpay/Clearpay. It is no longer possible to change these documents. The **InformationSupplied** journal is booked, and we send you an [INFORMATION\_SUPPLIED](/risk-management/disputes-api/dispute-notifications/#information_supplied) webhook.

Afterpay/Clearpay now has 30 days to review and either accept or reject your defense.

* If you win the dispute, the **DisputeDefensePeriodEnded** journal is booked. This is a final status.
* If you lose the dispute, a [Chargeback](#chargeback) is opened.

## Chargeback

If Afterpay/Clearpay rejected your defense, or if you did not defend the dispute, the **Chargeback** journal is booked, and we send you a [CHARGEBACK](https://docs.adyen.com/api-explorer/Webhooks/latest/post/CHARGEBACK) webhook. Your account is debited for the chargeback amount. This is a final status.

## Dispute reasons

The following table shows the possible reason codes for Afterpay/Clearpay disputes.

| Reason Code            | Description                                                                                                                                       | Defendable                                                                                  | Timeframe                      | Defense Requirements                                                                                                                                          |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| product\_not\_received | The customer claims that they did not receive the goods or services they purchased at your business.                                              | ![-white\_check\_mark-](/user/data/smileys/emoji/white_check_mark.png "-white_check_mark-") | 13 days from receiving the NoC | [Services not provided/Merchandise not received](/risk-management/understanding-disputes/dispute-reason-codes#services-not-provided-merchandise-not-received) |
| product\_unacceptable  | The customer claims that they received products or services that were defective, damaged, or not as described.                                    | ![-white\_check\_mark-](/user/data/smileys/emoji/white_check_mark.png "-white_check_mark-") | 13 days from receiving the NoC | [Goods not as described/defective](/risk-management/understanding-disputes/dispute-reason-codes#goods-not-as-described-defective)                             |
| credit\_not\_processed | The customer claims that they returned the purchased products or canceled the transaction, but have not yet received a refund or credit from you. | ![-white\_check\_mark-](/user/data/smileys/emoji/white_check_mark.png "-white_check_mark-") | 13 days from receiving the NoC | [Credit not processed](/risk-management/understanding-disputes/dispute-reason-codes#credit-not-processed)                                                     |

## Dispute fees

Before approving a payment, Afterpay/Clearpay performs risk checks on the shopper. If successful, Afterpay/Clearpay takes on the full fraud risk for the payment. For this reason, you will not be charged a dispute fee if the dispute results from an unauthorized payment.

For all other Afterpay/Clearpay disputes you will be charged a dispute fee, regardless of the outcome of the dispute. This fee is booked using the **PaymentCost** journal type. This journal type is included in the [Settlement details report](/reporting/settlement-reconciliation/transaction-level/settlement-details-report#journal-types) and the merchant payout details sheet in the [Monthly and Daily finance reports](/reporting/closing-your-fiscal-period/monthly-and-daily-finance-report#merchant-payout-details-sheet).

## See also

* [Dispute webhooks](/risk-management/disputes-api/dispute-notifications/)
* [Manage disputes](/risk-management/manage-disputes/)
* [Disputes API](/risk-management/disputes-api/)
