# Chargebacks

In Mexico, direct debit (Domiciliación Bancaria) is regulated under banking laws that give payers up to **90 days** from the debit date to request a chargeback with their issuing bank for unauthorised or incorrect charges. This strong consumer protection introduces exposure for merchants that should be factored into your collections strategy.

## How Chargebacks Work

When a customer disputes a charge with their bank and the chargeback is upheld:

- The reversed amount is **deducted directly from the merchant's outstanding balance** with Monato.
- Depending on your business profile, a **safety deposit** may be required to offset potential chargeback exposure. This is assessed on a case-by-case basis at onboarding.
- The platform sends a `charge_chargeback` [webhook event](/products/directdebit/content/guides/api/webhooks) to notify you when a chargeback is processed.


## Webhook Notification


```json
{
  "event": "charge_chargeback",
  "timestamp": "2025-11-15T09:00:00.000000Z",
  "data": {
    "charge_id": "683b4a12-ebf9-40c2-9226-f97f4b7782ab",
    "charge_result": "chargeback",
    "charge_reference": "subscription-0235"
  }
}
```

## Reconciliation

Chargebacks appear in Portal reports and are included in the [Chargeback Report](/products/directdebit/content/guides/portal/reports) available under Reports. Use this to track chargeback volumes, reconcile your balance, and identify patterns.

## Tailored Conditions

Chargeback exposure and mitigation requirements vary by merchant. Monato analyses each merchant's risk profile individually — safety deposit requirements and any specific conditions are agreed at contract signing.

For questions about your chargeback conditions or safety deposit, contact the Monato team.