A guide to handling Disputes and Chargebacks

 

What is a Dispute?

Though it’s a rare occurrence, from time to time, as a business owner selling products and services online, you may find yourself faced with what’s known as a dispute. 

A dispute occurs when a client questions a transaction created using their on-file payment method and contacts their card issuer. As a way of protecting their clients, the bank or card issuer creates a formal dispute, which immediately reverses the payment and pulls the funds back out of your account. This money is held in a sort of limbo while you, as the service provider, have a chance to respond to the dispute and submit evidence to make your case that the transaction was valid. 

 

What is required to overturn dispute?

Prove that the customer received a physical product or offline service, or made use of a digital product or online service. This must have occurred prior to the date the dispute was initiated. You can review Stripe's full dispute log here: Disputes and Fraud

 

How to respond to a dispute?

First, get in touch with your customer if possible. Understanding why they filed the dispute will be important for helping make sure your customer gets the product and will give you critical information to prevent this from happening to others. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favour. If they agree to this, you should still submit evidence for the dispute. In addition to the following evidence fields, your evidence should include correspondence with the cardholder saying they would withdraw the dispute and a written statement from their card issuer confirming that the dispute has been withdrawn.

For future sales, read Stripe's guide on how to best prevent against disputes here: Preventing Disputes and Fraud

 

Responding to a dispute in your Trainerize Account

 

1. Go to Payments > Disputes.

Click Respond for the dispute you want to respond to. NOTE: The evidence fields provided may differ depending on the dispute reason. You can view the reason on the Disputes page before moving forward with responding.  

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2. Select Submit Evidence.

At this stage, you can also select Forfeit Dispute. Forfeiting this dispute will resolve it in the client's favour. The disputed amount will not be returned to you and a dispute fee will be applied to your account. This cannot be undone and disputes cannot be reopened.

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3. Fill out the Product Description

A description of the product or service and any relevant details on how this was presented to the client at the time of purchase.

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4. Double-check the client name, email and billing address are correct Screen_Shot_2019-07-03_at_10.59.10_AM.png

 

5. Client Signature

A relevant document or contract showing the client's signature. You can upload JEPG, JPG, PNG and PDF files here.

 

6. Receipt

Any receipt or message sent to the client notifying them of the charge. You can use the invoice sent to the client. In the client's profile, open their disputed invoice and use the Print button to save it as a PDF.

 

7. Client Communication

Any communication with the client that you feel is relevant to your case, such as emails proving that they received or used the product or service. You can upload JEPG, JPG, PNG and PDF files here.

 

8. Additional Information

Provide any extra evidence or statements you'd like the card issuer to see, either as text or by uploading a document. You can upload JEPG, JPG, PNG and PDF files here.

 

9. Submit Evidence Now

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