Terms
Supplier - you as the business
Cardholder - your customer
What is a payments dispute?
A dispute (could be a chargeback, inquiry, or retrieval) occurs when a cardholder questions a payment with their card issuing bank.
Inquiries and retrievals
Many inquiries and retrievals are the results of the cardholder not recognising the transaction—providing basic information about your business and what was purchased is usually sufficient to close the case. However, if the cardholder refutes your evidence, or the card issuer considers it insufficient, the card issuer might escalate the inquiry or retrieval into a chargeback and reclaim the cardholder’s funds. It’s important to resolve the case while it’s still in the inquiry or retrieval stage before it escalates.
Disputes/Chargebacks
If the card issuer has chosen not to create an inquiry or retrieval or is unsatisfied with the evidence, they create a chargeback. Unlike inquiries or retrievals, during a chargeback, the issuer reclaims the disputed funds while processing the dispute. After the chargeback is created, you have a limited amount of time to respond with evidence. If you don’t submit evidence by the time the deadline passes, the cardholder wins the dispute and keeps the funds. If you submit evidence, it’s sent to the cardholder’s bank, which also has a limited amount of time (usually 40–60 days) to respond, which varies based on the card network.
ezyCollect will inform you via email should a dispute arise on your account. ezyCollect will help you determine the next course of action (see below). However, as funds have been reclaimed by the cardholder already, ezyCollect will be direct debiting you the disputed amount + dispute fee* within 5 business days from being notified of the chargeback. This is reimbursed if the dispute is won on your favor [as the supplier].
*Please check the dispute fee by sending an email to payments@ezycollect.com.au
Accepting or Countering Disputes/Chargebacks
Accepting the dispute/chargeback
Is the fastest way of closing a chargeback. This generally means that you [as the supplier] agrees with the dispute. You may re-bill your customer however, the dispute amount + dispute fee will be charged to you.
Countering the dispute/chargeback
This is when evidences are collated and submitted to formally counter a dispute claim.
The first part is explaining why the dispute is in error. For example, if your counter to a customer’s claim that they canceled a subscription for an online service is that the customer agreed to a minimum term, it doesn’t make sense to ask you for shipping and tracking details.
Assembling the evidences. See below suggestions (but not limited to):
Any communication with the customer that you feel is relevant to your case (for example, emails proving that they received the product or service, or demonstrating their use of or satisfaction with the product or service). If you have multiple items of this type, consolidate them into a single file.
A relevant document or contract showing the customer’s signature.
Any receipt or message sent to the customer notifying them of the charge. This field is automatically filled with a Stripe generated email receipt if any such receipt was sent.
A description of the product or service and any relevant details on how this was presented to the customer at the time of purchase.
Banks evaluating the dispute will not review any external content, so please do not include:
Audio or video files
Requests to call or email for more information
Links to click for further information (for example, file downloads or links to tracking information)
Background evidences. See below suggestions (but not limited to):
Shipping details
Refund policy details
Customer details
Product details
Submission of evidences can only be done once. So make sure all critical evidences relevant to the disputed transaction have been supplied.
Once submitted, the cardholders' issuing bank will review and decide whether to favor the cardholder or the supplier
Checking the Dispute Status
ezyCollect Payments will notify you when a decision is finalised for a given dispute. We will notify you [as the supplier] of this decision via email.
A dispute is WON indicates that the bank decided in your favor and overturned the dispute. In this case, the chargeback is reversed. If you have already been billed of the disputed amount + dispute fee*, then the disputed amount will be credited back to you
A dispute is LOST indicates that the bank decided in the cardholder's favor and upheld the dispute. In this case, you will billed of the disputed amount + dispute fee* - if you've already been charged prior to the decision, then the amount will not be credited back to you.
*Note: Dispute fees are no longer reimbursable from October 4, 2023 onwards