Chargebacks are a not-so-fun aspect of accepting credit card payments, and we are here to help guide you through what to expect if you do receive one. We also have a few tips on how to help prevent getting a chargeback in the first place.
What is a Chargeback (or Payment Dispute)?
A chargeback, also referred to as a payment dispute, occurs when a cardholder questions a transaction and asks their card-issuing bank to reverse it. The ability to dispute a payment is meant to protect consumers from unauthorized transactions, but it can mean big headaches for businesses, especially when they’re issued in error.
When a chargeback happens, the disputed funds are held from the business until the card issuer works things out and decides what to do. If the bank rules against the charge, those funds are returned to the cardholder. If the bank rules in your favor, they’ll send the disputed funds back to you.
Unfortunately, this can be a complicated and time-consuming process involving a lot of paperwork and documentation.
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I've gotten a chargeback—what do I do?
You can always count on Schedulicity Rockstars to help guide you through the chargeback process. You'll want to review the dispute information on your Payment Dashboard under the Disputes tab if you're connected with Schedulicity Pay. If you are with Clearent contact our support team and we'll get you all the details.
Here are two steps you can take to help dispute the situation:
Act quickly - you'll want to act in a timely manner to have the best chance of winning the dispute. Sometimes just reaching out the client and asking them to stop the chargeback (if it was accidental) will do the trick.
Be thorough in providing the right documentation - that means check and double-check that you're providing all the info requested and if you have extra documentation that will further help your dispute, it's always a good idea to send that too!
In 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 evidence such as:
Screenshots of the account holder/client
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 file formats:
JPG (maximum file size 10 MB)
TIFF (maximum file size 10 MB)
PDF (maximum file size 2 MB)
📸 From the Schedulicity side of things, give us a shout if we can help with any screenshots. Here's some helpful information to grab:
Make sure your appointment confirmation emails are up to date with your No-Show Policy. You can book a test appointment and email the confirmation to yourself to see what your policy contains, and then take a screenshot.
Update your Business Listing to display your No-Show Policy.
Any time a client books an appointment for a service that has a "Hold with a Credit Card" or "Deposit", clients will need to acknowledge your No-Show and Cancelation policies. Confirmation emails for their booking will also include your policies.
Make sure each of your service are set up for hold cc or deposit so clients will be sure to know of your policy as soon as they book their appointment.
Chargeback Fees
Even if/when you win a chargeback dispute, chargeback fees still apply. There will be a $15 handling fee.
Chargeback Timeline
Generally speaking, the chargeback process can differ between payment processors, and it traditionally takes between 60–90 days to resolve.
How do I get notified if I have a chargeback?
Under your Payments Dashboard, head to System Messages and turn on the chargeback messages and choose "save" when finished.
What can I do to 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.
Whatever the case, here are a few ways to help prevent them from happening. Check it out! 👇
The first and best thing you can do to help avoid a chargeback is have your no-show policy, cancellation policy and return policy posted and visible in as many places as possible, such as your business listing page, your website, and in the confirmation emails clients receive for their booking. You can always adjust your policies here within Schedulicity. Also, take a peek at waivers if you want to make sure clients are acknowledging all your policies.
A lot of business owner’s overlook this simple step of making sure your Business name is correct on your Credit Card Receipts - sometimes a client might not recognize your name if it’s different on your credit card receipts. Also, having a phone number visible on your Business Listing will help give a client an easy way to reach out with any questions on their charges. If you need to change your Business name with Schedulicity Pay, please reach out to us and we'll help get that updated.
Lastly, when you've finished checking your client out, it's always a good practice to email them the itemized receipt right away so they have a copy of it for their records.