Disputes are an unfortunate part of accepting payments online, but they are not common. A dispute or a chargeback occurs when a cardholder raises a complaint with their bank or credit card company about a payment made to you.
When the bank receives the complaint, the bank creates a formal dispute, reverses the payment, notifies you, and a $15 dispute fee is levied by the card network.
Since the payment has been returned to your guest, we’ll deduct this amount and the $15 dispute fee from your account. You have a chance to respond to the dispute and submit evidence to make your case that the payment was valid.
Note: Sometimes a cardholder’s bank may initiate an investigation into a complaint before a formal chargeback.
In such a scenario, the bank raises a dispute with status "Inquiry" and does not withdraw funds from your account. You must submit evidence requested by the cardholder’s bank or refund the payment in full.
If you do not submit evidence, you will lose the dispute automatically and will incur the chargeback and $15 dispute fee. If you choose to refund the amount, you will not incur the $15 dispute fee.
Disputes are handled by your guest's bank, so we don’t have any information about how this payment will be reviewed. In the bank's dispute resolution process, if the dispute is found in your favor, the disputed amount and dispute fee is returned back to you. If a dispute is upheld, the bank’s decision is final and the cardholder’s payment remains refunded.
If you have received a dispute notification, this is what you need to do:
- Review the disputed transaction using the Zenoti Payments Disputes report.
- Understand the evidence you must submit for the dispute type.
- Respond to the dispute by either accepting the dispute or submitting evidence to prove that the payment was valid.