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chargeback-flow-test-author

Workflow-driven skill that builds the chargeback / dispute test suite. Covers the canonical reason codes (Visa CB Reason Code 10.4 fraud / 13.1 services not provided; Mastercard MCC 4855; per-network code lookups), the per-gateway dispute API (Stripe Disputes; Adyen Chargeback notifications; PayPal Disputes API), the merchant-evidence-submission flow + window, the auto-evidence-collection patterns, and the disposition outcomes (won / lost / accepted). Use when designing dispute coverage. Composes payment-flow-states-reference.

chargeback-flow-test-author

Overview

A chargeback (also: dispute) is a customer-initiated reversal of a settled transaction. The merchant has a fixed window (typically 7-30 days) to submit evidence. Outcomes: merchant wins (funds retained) or loses (funds + chargeback fee deducted).

Per stripe.com/docs/disputes: "Disputes (also known as chargebacks) start when a cardholder questions a payment with their card issuer." Visa, Mastercard, AmEx each maintain their own reason-code catalogs.

When to use

  • Designing dispute test coverage for a new integration.
  • Auditing existing dispute-evidence-submission code.
  • Building dispute analytics dashboards.

Step 1 - Reason code catalog

Per Visa Chargeback Reason Codes (cite by stable ID: Visa Chargeback Management Guidelines):

CodeCategoryDescription
10.4Fraud"Card-absent environment fraud"
11.1AuthorizationCard recovery bulletin
11.2AuthorizationDeclined authorization
11.3AuthorizationNo authorization
12.1Processing errorsLate presentment
12.2Processing errorsIncorrect transaction code
12.3Processing errorsIncorrect currency
12.4Processing errorsIncorrect account number
13.1Consumer disputesMerchandise/services not received
13.2Consumer disputesCancelled recurring transaction
13.3Consumer disputesNot as described
13.5Consumer disputesMisrepresentation

Per Mastercard MCC chargeback reason codes (cite by stable ID: Mastercard Chargeback Guide):

CodeDescription
4853Cardholder disputes
4855Non-receipt of merchandise
4859Services not rendered
4863Cardholder doesn't recognize

For tests: pick the 3-5 most-common reason codes for your business and verify the evidence-collection flow for each.

Step 2 - Per-gateway dispute API

Stripe

Per stripe.com/docs/disputes: the dispute object has a status field (needs_response, under_review, won, lost, warning_*).

Test mode:

// Create a disputable charge
const charge = await stripe.paymentIntents.create({
  amount: 1000, currency: 'usd',
  payment_method: 'pm_card_createDispute',  // Special test method
  confirm: true, return_url: 'https://example.com/return',
});

// Wait for the dispute event via webhook
// Or fetch directly
const disputes = await stripe.disputes.list({ payment_intent: charge.id });
expect(disputes.data[0].status).toBe('needs_response');
expect(disputes.data[0].reason).toBe('fraudulent');

Per Stripe testing docs, special payment methods trigger disputes in test mode.

Adyen

Per docs.adyen.com/risk-management/disputes-api: Adyen sends [CHARGEBACK] notifications.

// Simulate via test mode + webhook
const dispute = await disputesApi.acceptDispute({
  disputePspReference: 'test-dispute-ref',
  merchantAccountCode: process.env.ADYEN_MERCHANT_ACCOUNT,
});

PayPal Disputes API

Per developer.paypal.com/docs/api/customer-disputes/v1:

const dispute = await disputesClient.get(disputeId);
expect(dispute.status).toBe('OPEN');

Step 3 - Submit evidence

Per stripe.com/docs/disputes/responding:

test('submit dispute evidence', async () => {
  const dispute = disputes.data[0];
  const result = await stripe.disputes.update(dispute.id, {
    evidence: {
      product_description: 'Premium subscription month 5',
      service_documentation: fileUploadId,  // FileUpload object
      shipping_documentation: shippingFileId,
      customer_email_address: 'user@example.com',
      customer_purchase_ip: '203.0.113.1',
      receipt: receiptFileId,
    },
  });
  expect(result.evidence_details.has_evidence).toBe(true);
});

The evidence must be submitted before the due date (evidence_details.due_by).

Step 4 - Test the disposition flow

test('won disputes update internal state', async () => {
  // Trigger via test mode
  const dispute = await createTestDispute({ reason: 'product_not_received' });
  await submitWinningEvidence(dispute.id);

  // In Stripe test mode, certain evidence text wins the dispute
  await waitForWebhook('charge.dispute.closed', { matching: { id: dispute.id } });

  const final = await stripe.disputes.retrieve(dispute.id);
  expect(final.status).toBe('won');
  expect(final.amount).toBe(0);  // No funds deducted
});

test('lost disputes update internal state', async () => {
  const dispute = await createTestDispute({});
  // Don't submit evidence; let it expire
  await skipPastDueDate(dispute);

  await waitForWebhook('charge.dispute.closed');
  const final = await stripe.disputes.retrieve(dispute.id);
  expect(final.status).toBe('lost');
});

Step 5 - Auto-evidence collection

Many merchants auto-collect evidence on every charge - purchase description, shipping info, customer IP - to streamline disputes. Tests should verify:

test('every charge has auto-evidence', async () => {
  const intent = await createSucceededIntent({...});
  const evidence = await loadEvidenceForCharge(intent.charges.data[0].id);
  expect(evidence).toMatchObject({
    customer_email_address: expect.any(String),
    customer_purchase_ip: expect.any(String),
    receipt_url: expect.any(String),
  });
});

Step 6 - Test matrix

# tests/payment/chargeback-matrix.yaml
matrix:
  reason_codes:
    - "Visa 10.4 - fraud"
    - "Visa 13.1 - services not provided"
    - "Mastercard 4855 - non-receipt"
  gateways:
    - stripe
    - adyen
    - paypal
  outcomes:
    - won-with-evidence
    - lost-no-response
    - accepted

Per (gateway, reason, outcome) cell, generate a test.

Step 7 - Reconciliation

Chargebacks affect accounting:

test('lost dispute reverses funds in ledger', async () => {
  const intent = await createSucceededIntent({ amount: 1000 });
  const dispute = await triggerLostDispute(intent);
  await waitForChargebackEvent();

  const ledger = await getLedgerEntries(intent.id);
  expect(ledger).toContainEqual(expect.objectContaining({ type: 'charge', amount: 1000 }));
  expect(ledger).toContainEqual(expect.objectContaining({ type: 'chargeback', amount: -1000 }));
  expect(ledger).toContainEqual(expect.objectContaining({ type: 'chargeback_fee' }));
});

Anti-patterns

Anti-patternWhy it failsFix
Skip dispute tests"Won't happen often" but worst-case impact is highAlways cover
Hand-coded evidence submissionSchema drift; missed fieldsUse gateway SDK helpers
No due-date trackingEvidence submitted late → auto-loseTest the due-date watcher
Test only one reason codeEach reason has different evidence requirementsCover top 3-5
Mock the dispute objectLoses gateway-side state transitionsUse test-mode dispute triggers
Skip chargeback-fee reconciliationBooks don't matchTest the ledger
No webhook handling for charge.dispute.closedFinal state unknownWebhook-driven
Hardcoded "$15 chargeback fee"Per-gateway, per-region; variesRead from gateway response

Limitations

  • Real chargebacks take weeks. Test mode collapses the timeline; production verification needs production traffic.
  • Reason codes change. Visa / Mastercard publish updates; test data goes stale annually.
  • Bank-side evidence review isn't fully testable.
  • Per-jurisdiction rules. EU has stronger consumer protection; US has different.

References