Notification of Chargeback (NoC for short) refers to a notification initiated by the issuing bank (Issuer) to inform the merchant that there is a dispute regarding a transaction. The NoC can be initiated after a Request for Information (RFI), or it can skip the RFI step and be initiated directly after the transaction status is set to Settled or Refunded. Once the NoC is initiated, the dispute resolution process officially begins, and funds will be deducted from your account.

Detailed Process of Notification of Chargeback

1. Initiate Chargeback Notification: The issuing bank discovers a disputed transaction and initiates a Notification of Chargeback (NoC) to the merchant's acquiring bank (Acquirer).
2. Notify Merchant: After receiving the chargeback notification, the acquiring bank notifies the merchant and provides relevant transaction information and reasons for the chargeback.
3. Fund Deduction: Usually within a few days after the merchant receives the chargeback notification, the disputed amount will be deducted from the merchant's account.
4. Merchant Response: The merchant can submit relevant evidence and materials within the specified time to prove the legitimacy and validity of the transaction.
5. Bank Evaluation: The acquiring bank forwards the materials submitted by the merchant to the issuing bank, which evaluates these materials to decide whether to reverse the chargeback request.
6. Decision Result: If the issuing bank determines that the evidence provided by the merchant is sufficient, the chargeback request will be reversed and the transaction amount will be transferred back to the merchant's account. If the issuing bank determines that the cardholder's dispute is valid, the transaction amount will be refunded to the cardholder.

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