Chargebacks and Customer Disputes
In this article, we will share with you information on how to handle chargebacks or customer disputes.
Let's first understand the basics of a chargeback:
- What is a Chargeback? A chargeback is a refund automatically issued to your customer by your credit card processor.
- How is a Chargeback initiated? Your customer directly initiates the chargeback with their credit card company - disputing the amount they have been charged.
- Why does a customer initiate a Chargeback? Two most common reasons for initiating a chargeback are - when a customer wants refund and is given an account credit or they simply were unhappy with the service received.
Best Practices to Win Chargebacks:
There two ways to immediately create a winning case for getting your money back:
- Have a clear and simple Cancellation and Refund Policy on every event on Occasion, forcing the customer to agree to the policy prior to booking.
- Include your cancellation and refund policy in the email confirmation receipt for the customer to receive post-booking.
What to do when you receive a Chargeback:
Your credit card processor (Square, Stripe, PayPal etc.) will notify you when there is a chargeback initiated on your account. Here are some things you should do immediately:
- If you can, easiest thing to do is contacting the customer directly, clarifying the charge with them and asking them to withdraw their chargeback request. If you cannot do that, then move to Step 2.
- Print or Print To PDF the Customer's Order in Occasion for your record
- Contact your credit card processor, dispute the Chargeback and send them the order confirmation from step 1
- Wait on them to respond or resolve the dispute.