Role Related KnowledgeTechnical

Can you explain the difference between credit card authorizations, settlements, and chargebacks?

Customer Service RepresentativeCustomer Experience Lead

Stripe

Compass

Hippo

PayPal

Affirm

BharatPe

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Behavioral
  • Can you explain the difference between credit card authorizations, settlements, and chargebacks?
  • If a customer was confused between authorization and settlement, how would you clarify the stages in a payment transaction?
  • How would you explain what happens when a customer makes a purchase, and the payment is authorized but hasn’t been settled yet?
  • If a customer asked about the relationship between authorizations, settlements, and chargebacks, how would you break down these concepts for them?
  • Can you explain to a customer the difference between a credit card authorization and a chargeback in simple terms?
  • What’s the difference between authorization and settlement, and why should merchants care about both?
  • A merchant wants to understand why their transaction is authorized but not yet settled. How would you explain the timing and process?
  • How would you explain settlements and potential delays to a customer asking why a transaction was authorized but not completed?
  • A customer reports they’ve made a purchase, but the funds were authorized but not settled. How would you explain the difference and the expected timeline?
  • How would you assist a customer in understanding the difference between credit card authorizations, settlements, and chargebacks?

Interview question asked to Customer Experience Leads and Customer Service Representatives interviewing at BharatPe, Hippo, Stripe and others: Can you explain the difference between credit card authorizations, settlements, and chargebacks?.