Last update: May 10, 2023
Sezzle Installment Services Customer Dispute Resolution Procedures
1. Customer Disputes.
Sezzle may receive written or verbal disputes from Merchant’s Customers about a product or service purchased from Merchant using Sezzle’s Installment Services (“Customer Disputes”). Receiving a Customer Dispute in no way alters the parties’ rights and responsibilities under the Merchant Agreement and the Installment Loan Schedule entered into between Merchant and Sezzle. In case of any discrepancy between these Customer Dispute Resolution Procedures and the Merchant Agreement, the Merchant Agreement will control. Any capitalized terms not defined in these Customer Dispute Resolution Procedures shall have the meaning set forth in the Merchant Agreement and the Installment Loan Schedule.
2. Customer Disputes. Types of Customer Disputes and chargeback reasons include, but are not limited to:
(a) Product not received. Customer claims that they have not received a product they purchased on Merchant’s website.
(b) Product unacceptable. Customer claims that a product they received is incorrect, damaged, or otherwise fails to conform to the product description on the Merchant’s website.
(c) Cancellation or return not processed. Customer claims that they were charged for a product or service they cancelled or returned.
(d) Incorrect charge. Customer claims that they were charged an incorrect amount.
(e) Duplicate charge. Customer claims they were charged multiple times for an item or an order.
(f) Other. The items listed in Section 6 below.
3. Sezzle’s Investigation of Customer Disputes.
Sezzle will investigate Customer Disputes that are received no later than 120 calendar days from the date of loan origination for all purchases utilizing the Sezzle Installment Services.
Prior to the investigation of any Customer Dispute, Sezzle will require that the Merchant attempt in good faith to resolve the dispute with the Customer.
If Sezzle determines that the investigation is to be resolved in favor of the Merchant, Sezzle will notify the Customer of the outcome of the investigation.
If Sezzle determines that the investigation remains unresolved or may be resolved in favor of the Customer, Sezzle will initiate a formal resolution process by forwarding the dispute to Merchant.
Sezzle Installment Services Transactions:
Merchant will have five (5) calendar days from the date of notification by Sezzle to respond with evidence sufficient for Sezzle to investigate the Customer Dispute. If Merchant fails to respond within five (5) calendar days with sufficient evidence, Sezzle will charge back to the Merchant the principal amount on the Customer’s loan and will reserve the right to deduct such amount from future Merchant funds. If Merchant responds within five (5) calendar days with sufficient evidence, Sezzle will attempt to resolve the dispute within an additional (5) five calendar day period from receipt of Merchant’s response. In the five (5) calendar day period (or such additional period as Sezzle may require), Sezzle may request additional evidence from either the Merchant or Customer and will require each party to respond to such request for additional evidence within five (5) calendar days of the request. A failure to timely respond to requests for evidence may result in the dispute being resolved against the non-complying party.
Merchant rebuttal evidence may include, but shall not be limited to, the following:
| Dispute Type | Guidelines for Merchant Rebuttal Evidence |
| Product not received | Proof of shipment or proof of delivery by common carrier, bearing the date the item was shipped, the recipient’s address and proof that the recipient’s address matches the address provided by the Customer during checkout. |
| Product unacceptable | Proof that the product delivered to Customer was not materially different than the advertised product. |
| Cancellation or return not processed | Statement identifying Merchant’s relevant refund/return policy provision(s) and specifying the reason(s) Customer did not qualify for a refund/return. Affidavit stating that Customer did not return the product. |
| Incorrect charge | Screenshot of website or other documentation reflecting the price of the product advertised on the date of purchase. Itemized invoice reflecting all taxes, shipping charges, and discounts that Merchant applied to Customer’s purchase. |
| Duplicate charge | Screenshot of website or other documentation reflecting the price of the product advertised on the date of purchase. Itemized invoice reflecting all taxes, shipping charges and discounts applied to Customer’s purchase. |
4. Resolution. Sezzle will resolve all Customer Disputes in favor of the party that best substantiates its claim(s), in Sezzle’s sole reasonable discretion. Failure of Merchant to comply with the Sezzle Shipping Policy shall always result in a determination of the dispute in favor of the Customer.
If Sezzle resolves a Customer Dispute in favor of Merchant, the Merchant will not be charged back for any amount of principal related to the disputed transaction. If Sezzle resolves a Customer Dispute in favor of Customer, Sezzle will charge back to the Merchant the principal amount on the Customer’s loan and will reserve the right to deduct the amount from future Merchant Funds.
5. Amendments. Sezzle may amend these Customer Dispute Resolution Procedures in accordance with the terms of the Merchant Agreement and the Installment Loan Schedule into which these procedures are incorporated by reference.
6. Additional Chargeback Reasons:
Product Not Received - A customer placed (and was charged for) an order with a Sezzle merchant partner, but the product(s) associated with said purchase was never delivered (full or partial).
Defective or Damaged Product - A customer placed (and was charged for) an order with a Sezzle merchant partner, and the product(s) was delivered in a defective or damaged state (full or partial).
Product Not as Described - A customer placed (and was charged for) an order with a Sezzle merchant partner, and the product(s) included in said order was materially different from what was described on the merchant’s website. This could include (but is not limited to) differences in product type, make, size, condition, color, and material.
Duplicate Charge - A customer was charged multiple times for a single order or individual items within an order.
Incorrect Charge Amount - The amount authorized by a customer at the time of purchase differs from the amount the customer has been charged.
Cancellation Not Honored - A customer attempted to cancel an order in accordance with a merchant’s cancellation policy, and the customer’s request was either denied, or granted with the condition of a fee that was not included in the policy at the time of the request.
Return/Refusal Not Honored - A customer attempted to return or refuse delivery of a product in accordance with a merchant’s return policy, and the customer’s account was either not credited for the return/refusal, or credited with the condition of a fee that was not included in the policy at the time of the request.
Incorrect Credit Issued - A transactional error resulted in a customer’s account being credited for an incorrect amount.
Different Payment Method Used - A customer was charged for financing an order through Sezzle, but the customer actually completed their purchase using a different method of payment (only one order fulfilled).
Services Not Rendered - A merchant failed to fulfill tasks related to delivery logistics/services that were previously agreed upon as part of the total purchase price. This could include (but is not limited to) specific drop off locations (indoors/outdoors), product installation, and product removal.
Misleading Marketing Material - Language in a merchant’s marketing material (either on their website or elsewhere) could objectively be considered misleading to the customer. This could include (but is not limited to) any promotional financing offers that are not clear in their terms.
Authorization Given by Third Party - A merchant representative completed the application and checkout process on a customer’s behalf (this includes e-signing all terms and conditions).
Failure to Respond - Merchant failed to respond in a timely manner with sufficient evidence for Sezzle to resolve the dispute.
Failure to Comply with Shipping Policy - Merchant failed to comply with the Sezzle Shipping Policy.