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Note: This page covers disputes on payments processed through Stripe. If your account processes through Fiserv/CardConnect, disputes are handled entirely by the processor with no involvement from Gingr or Merchant Support. See CardConnect Chargebacks & Disputes (Reference).
Summary
A chargeback (also called a dispute) happens when a customer disputes a charge with their bank or credit card company, or when the bank's own monitoring flags a transaction, instead of contacting you directly. This is different from a refund, which you issue yourself through Gingr.
When a dispute is opened, the disputed funds are returned to the customer right away and held while the dispute is reviewed. This happens automatically and is separate from the dispute fee described below.
Why disputes happen
A customer can dispute a charge for many reasons, including:
- They don't recognize the charge on their statement.
- They believe they were charged incorrectly or charged twice.
- They're unhappy with a service and skipped asking for a refund.
- The charge looks unfamiliar because the statement descriptor doesn't clearly show your business name.
- Their bank's own fraud monitoring flags the transaction (sometimes surfacing first as an "early fraud warning" before it becomes a formal dispute).
Note: See Accounts & Details for how to set your Statement Descriptor so charges are easier for customers to recognize.
Understanding how disputes are decided
It's important for merchants to understand that Gingr and Merchant Support are not the decision-makers in a dispute. The outcome of a dispute is decided entirely by the cardholder's bank and the card network, based on the evidence submitted. Gingr's role is limited to notifying the merchant and helping submit whatever evidence the merchant provides.
Tip: Disputes often end up being decided in the cardholder's favor, even when you've submitted solid supporting evidence. Keeping this in mind can help you approach the process with realistic expectations.
For more information on submitting the best evidence possible for each dispute reason, as well as tips for preventing future disputes, see Stripe's dispute category guide.
What happens to your funds
When a dispute is opened, the disputed funds are withdrawn from your account immediately by the cardholder's bank while the dispute is under review. If the bank resolves the dispute in your favor, the funds are returned to you at that time. This happens automatically and is separate from the dispute fee described below.
Gingr Payments also charges a flat $40 dispute fee on every disputed payment. This fee is non-refundable and applies regardless of the outcome. It covers the administrative time, processor coordination, and documentation review that the dispute process requires, no matter how the case is decided.
The dispute reversal and the $40 fee both appear as debit line items in the payout details under Balances & Payouts, but neither is labeled as dispute-related. Merchant Support's outreach is your notification. There is no in-app notification that a dispute has been opened.
Responding to a dispute
Tip: A dispute is ultimately a disagreement or misunderstanding between your business and your customer. Reaching out directly is often the fastest way to resolve it.
The formal dispute process works as follows:
- When a dispute is filed, Merchant Support receives an automated notification from Stripe.
- Merchant Support reaches out to you via email, typically the same business day. That message details what evidence is needed, how to submit it, and the specific due date.
- Follow the instructions provided by Merchant Support to submit your evidence.
- Merchant Support relays that evidence to Stripe on your behalf.
Preventing disputes
See Preventing Chargebacks & Disputes (Reference) for best practices, including statement descriptors, refund response time, recordkeeping, and cancellation policy communication.
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