Qatar Chargeback Guide 2025: Understanding the Risks & How Dibsy Helps You Prevent Them

Why Chargebacks Matter for Qatar Merchants

Why chargebacks matter:

When a card-holder disputes a transaction, the merchant loses the sale amount, pays a chargeback fee, and might be placed under monitoring by the card networks — causing higher costs, worse terms or even suspension of the merchant account.

Industry research shows that although each individual chargeback may seem small, the aggregated cost to a merchant is much larger — lost product/service cost, lost revenue, refund processing, admin hours, higher interchange/processing fees, and in worst cases, significant reputational damage built over time.

For Qatari businesses, additional factors raise risk: using USD or foreign currency when customers expect QAR, unfamiliar billing descriptors, or slower settlement via foreign bank accounts — all of which can confuse customers and increase “I don’t recognise this charge” disputes.

Many card networks set thresholds — for example, merchants with chargeback rates above 1% may be flagged for monitoring.

The 3 Main Types of Chargebacks

Although there are many reason codes, chargebacks fall into 3 major categories:

• Merchant error (business mistakes)
• Fraud / unauthorised transactions
• Friendly fraud (first-party fraud)

Type 1: Merchant Error Chargebacks

What it is

Merchant-error chargebacks happen when a business makes a mistake during transaction processing or fulfilment: incorrect amount, duplicated charge, unclear descriptor, wrong item shipped, or failure to deliver.

Examples in Qatar:

• A Doha e-commerce store lists an item as QR 1,200 but charges QR 12,000.
• A customer receives the wrong colour/size and files a “not as described” dispute.
• The descriptor says “GLOBALSHOP1234” instead of “YourBrand Doha,” causing confusion.
• A merchant uses USD settlement and the customer sees “USD 50” when expecting QAR.

Why it matters

• These are the most preventable chargebacks.
• Internal mistakes can rapidly escalate chargeback volume.
• Localisation issues in Qatar amplify risk.

How to Prevent Merchant-Error Chargebacks (Qatar Focus)

1. Display QAR clearly at checkout

• Avoid USD amounts.
• Dibsy ensures settlement in QAR in local Qatari banks.

2. Use a clear, familiar billing descriptor

• “YourBrand Doha” or “YourBrand via Dibsy.”
• Support Arabic + English.
• Dibsy lets you preview descriptor strings in the dashboard.

3. Publish returns/refund policy (Arabic + English)

• Visible at checkout.
• Clear shipping times, delivery expectations.
• Dibsy supports bilingual post-purchase emails.

4. Send immediate order confirmation

• Arabic + English SMS/email.
• Amount in QAR, merchant name, order details.
• Dibsy supports automated notifications & webhooks.

5. Fix fulfilment & tracking

• Ship fast, track each item, use Qatar-familiar couriers.
• Keep proof (tracking, signature).

6. Monitor chargeback rate & root causes

• Track patterns: descriptor confusion? wrong item? shipping delays?
• Dibsy’s analytics dashboard gives visibility.

7. Customer support in Qatar time-zone

• Arabic + English.
• Faster resolution = fewer bank disputes.
• Dibsy provides local support escalation.

Type 2: Fraud (Unauthorised) Chargebacks

What it is

Occurs when stolen cards or unauthorised payment methods are used. Cardholder denies the transaction.

Examples in Qatar:

• Stolen Qatari card used to order online → cardholder disputes.
• CNP transaction mismatch (IP in another country, shipping to Qatar).
• Fake identity/subscription account.

Why it matters

• High financial loss per incident.
• Qatar’s growth in online commerce means higher exposure.
• Foreign gateways often lack GCC-specific fraud detection.

How to Prevent Fraud Chargebacks (Qatar Focus)

1. Use strong fraud screening

• AVS, CVV, device fingerprinting, IP checks.
• Manual review for suspicious orders.

2. Enable 3D Secure / SCA

• Shifts liability and reduces unauthorised use.
• Dibsy supports regional SCA flows.

3. Flag high-risk orders

• Billing ≠ shipping address.
• First-time customers.
• High ticket size.
• Mismatched IP.

4. Hold fulfilment until verification

• Confirm via phone/SMS Arabic + English.
• Use signature-based local couriers for high-risk orders.

5. Monitor risk indicators

• Same IP buying multiple items.
• New account big purchases.
• Dibsy dashboard detects clusters of fraud patterns.

6. Settle in QAR with local banks

• Faster reconciliation.
• Detect issues earlier.
• Avoid delays from foreign USD gateways.

Type 3: Friendly Fraud (First-Party Fraud)

What it is

The cardholder actually made the purchase but later disputes it.

Examples in Qatar:

• Child buys game/subscription using parent’s card → parent disputes.
• Shopper forgets subscription renewal → files dispute.
• Descriptor only in English → customer does not recognise charge.

Why it matters

• Largest category globally (60–80% of disputes).
• Hardest to fight.
• Common in Qatar due to multilingual households & shared cards.

How to Prevent Friendly Fraud (Qatar Focus)

1. Use clear billing descriptors

• Brand + “via Dibsy”.
• Arabic + English.
• Consistent across email, invoice & statement.

2. Send confirmation + reminders

• Bilingual SMS/email.
• Subscription renewal reminders.
• Clear next payment date.

3. Make cancellation easy

• Visible in checkout.
• Bilingual.
• Reduces disputes caused by frustration.

4. Encourage customer contact

• Promote local support.
• Dibsy local team helps resolve early.

5. Analyse patterns

• Look for frequent refunds or “didn’t recognise” claims.

6. Transparent checkout

• Show renewal date.
• Show product description.
• Show “YourBrand via Dibsy”.

Prevention Summary & Checklist

Why Choosing the Right Gateway Matters in Qatar

How Dibsy Helps

• QAR settlement into local banks
• Arabic + English support
• Custom billing descriptor
• Fraud-screening
• Local support
• Analytics designed for Qatar merchants
• Subscription notifications & webhooks