Dispute Liability

Bolt indemnifies all orders our system approves that charge back as fraud. Fraud indemnification means that merchants who use Bolt truly never have to spend time or money on fraudulent transactions again.

Bolt-liable Chargebacks

If the liability resides with Bolt (usually in the case of fraudulent chargebacks), Bolt assumes responsibility for all fees and costs associated with the chargeback.

Liability Requirements Coverage Scenarios
The transaction was processed through Bolt Unauthorized Charges: Lost or stolen cards, hacked accounts.
The purchaser completed checkout themselves (as opposed to a merchant’s agent -completing checkout on the purchaser’s behalf) Friendly Fraud: Family/Friend using card without explicit consent.
For physical goods, the merchant has retained tracking numbers and relevant shipping documentation to help Bolt fight chargebacks.

Merchant-Liable Chargebacks

If the liability resides with the merchant, the following actions are taken:

  • The merchant’s account is be debited for the amount of the chargeback
  • The customer receives the funds within the following 7 days
  • The merchant is charged an additional $15 chargeback processing fee
  • The merchant is sent an email notification from Bolt containing chargeback information such as the customer’s name, the transaction ID, chargeback amount, reply-by date, and any instructions for contesting the dispute
Liability Requirements Liable Scenarios
Product received was not what the customer ordered Force-Approved transactions: Bolt rejected the order but the merchant overrode the rejection.
Product was not delivered on time, was never delivered, or was damaged upon delivery Merchant-Placed Transactions: Phone orders or in person orders that the merchant placed on behalf of the customer. These may be made either through the Bolt Virtual Terminal or through checkout on the website.
Customer returned the merchandise but did not receive a refund Transactions on the Merchant’s IP Address: Orders placed using the merchant’s IP address generally indicate that the merchant placed the order on behalf of a customer within the merchant’s physical location. This type of backoffice order is not indemnified by Bolt. If you need to create a backoffice order, please use the Virtual Terminal.
Other merchant errors (poor customer service, unwanted recurring payments, authorization errors, or faulty product fulfillment) Altered Transactions: Transactions where the order details, such as shipping address or recipient name, are changed after Bolt has approved the order. If you’d like to change order details and retain fraud coverage, please email Bolt Support with your requested change and we’d be happy to re-review your order.

If you are booking a transaction on behalf of your customer (i.e. phone orders), we highly recommend using the Virtual Terminal rather than booking through your website checkout. Bolt charges only processing fees on orders placed through the Virtual Terminal, and does not charge a Bolt fee. Orders placed through the website checkout will be charged both the processing fee and the Bolt fee, and the merchant is liable for any chargebacks.

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