💳 Chargebacks can be an element of accepting credit card payments for any business. If you have received a chargeback from your client, we suggest educating yourself on the process and learning more. We're also here to help!
What is a Chargeback (or Disputed Charge)?
A chargeback (or disputed charge) occurs when the cardholder/client questions a transaction and requests their bank to reverse it.
The ability to dispute a payment is meant to protect consumers from unauthorized transactions.
When a chargeback happens, disputed funds are held from the business until the card issuer/bank settles the dispute.
If the bank rules against the charge, funds are returned to the cardholder/client.
If the bank rules in the businesses favor, funds will be returned to the business.
❗ A client can initiate a chargeback with their bank, even if they violate your No Show and Cancelation Policies. Ultimately the bank will determine who wins the chargeback based on evidence submitted and their protocols.
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I've gotten a chargeback—what do I do?
🙋♀️ Schedulicity Rockstars can help guide you through the chargeback process.
If you process credit cards with Clearent, contact our Support Team and we'll send you the details.
If you're connected with Schedulicity Pay. Review the dispute information on your Payment Dashboard under the Disputes tab (steps below).
Steps to Dispute a Chargeback via the Payment Dashboard:
Under Disputes, you'll have the choice to Accept or Defend the chargeback within the allotted time.
Select the dispute and upload your evidence (such as):
Screenshots of the client's Schedulicity profile
Screenshots showing the client acknowledged your no show/cancelation policies
Screenshots of booking information -> Original Appointment Details when & how they booked
Screenshots of waivers (if any)
Screenshots of any other communication with client
📁 Documents can be uploaded in the following formats:
JPG (maximum file size 10 MB)
TIFF (maximum file size 10 MB)
PDF (maximum file size 2 MB)
❗Contact Customer Support if we can help grab screenshots.
Helpful information to keep in mind:
Confirmation Emails - Make sure your appointment confirmation contains your No-Show Policy.
Business Listing - Update the About section of your Business Listing to include your No-Show Policy.
Payment Settings - Set your Services or Classes/Workshops up with payment preferences. If a client books an appointment for a service that has a Hold with a Credit Card, Deposit, or Prepay clients need to acknowledge your No-Show and Cancelation policies. Confirmation emails for their booking will also include your policies.
❗ Edit your Payment Policies here.
Helpful tips for disputing a chargeback:
Act quickly - you'll want to act in a timely manner to have the best chance of winning the dispute.
Reach out to the client - In some cases you might reach out to the client to ask why they disputed the charge -> if it was accidental ask them to drop the dispute with their bank
Be thorough with documentation - double-check that you're providing all information requested. If you have extra documentation (text messages or a signed contract) that will help your dispute, it's a good idea to send that too!
Chargeback Fees
All chargebacks include a $15 handling fee, wether you win or lose the dispute.
Chargeback Timeline
The chargeback process can differ between payment processors, typically it takes between 60–90 days to resolve.
How do I get notified if I have a chargeback?
Via your Payments Dashboard -> select System Messages -> turn on Chargeback Messages -> choose Save
How can I do help prevent chargebacks?
Understanding chargebacks and why they happen is the first step to preventing them. There are three types of situations that can cause a client to initiate a chargeback:
Credit card fraud – The customer’s credit card information was stolen
Friendly fraud - Forgetting about the purchase, not recognizing your business name, displeased with product or service, and unclear return, no-show, or pre-pay policy.
Merchant or Processing Errors - This may include accidentally double-charging a customer, entering the wrong information or amount of a purchase.
Here are a few ways to help prevent Chargebacks👇
No-Show Policy, Cancellation Policy and Return Policy - Post and make your Payment Policies visible in as many places as possible (Business Listing, Website, Confirmation Emails). You can always adjust your policies here within Schedulicity.
Waivers - Add waivers to online booking if you want clients to acknowledging your policies.
Business Name is Correct with your Credit Card Processor - If a client doesn't recognize the business name, they may issue a dispute. If you change your business name please reach out to us -> we'll help update that with Schedulicity Pay.
Phone Number - List a phone number on your Business Listing. This gives a client an easy way to reach out.
Email Receipt - It's a good practice to email clients a receipt at checkout so they have a copy of it for their records.
Check Signature on Card - For large transactions or incases of stolen cards, it can be a good practice to check a clients ID to confirm it matches the name on the card