Credit Card Chargebacks / Disputes

Owned by Nikola Keravica
Last updated: Nov 07, 2023
4 min read

IMPORTANT: Disputes dating September 1st 2023 and forward will be affected by this change.

There has been an update from Stripe which is now going to keep the $15 fee associated with chargebacks.
In the past, they would give it back if you won the chargeback.
Now, they've made a move where they are keeping the $15 no matter what.

“Whether you win or lose a dispute, card networks charge Stripe a fee in either case. To cover these costs, starting June 1, Stripe will no longer return the $15 dispute fee for successfully contested disputes. The dispute fee itself is not changing. “

https://www.ecommercebytes.com/2023/03/08/stripe-hikes-international-payment-fees-no-more-15-dispute-fee-refunds/

We want to keep you informed about an important update regarding the handling of Chargebacks or disputes for Customer Credit Card transactions within our platform. This update will affect transactions made after September 1st, 2023.

What is a Chargeback? A Chargeback occurs when a customer places an order on your website and subsequently disputes that transaction with their credit card provider. We'll guide you through the process for managing these situations.

Notification of Chargebacks When a Chargeback is initiated, you will receive a notification on your admin dashboard. This notification will alert you to the presence of a Chargeback that needs your attention. It will look like this:

To address the Chargeback, click on the notification, and you will be directed to the Manage Payments section. This section is also accessible by clicking your name in the top right-hand corner of the admin backend and selecting "Manage Payments." Once there, navigate to the "Disputes" tab to view your pending Chargebacks.

Manage Chargebacks by clicking the "Manage" button associated with the dispute. This allows you to provide evidence that the order was delivered and that the transaction was legitimate.

New Functionality What's changing is how we handle the funds associated with Chargebacks. Previously, when a Chargeback occurred, we would recover these funds fully once the dispute is “over”.
New Procedure Now, as soon as a Chargeback is initiated, we will pull the exact amount of money from your account. This amount will be deducted from your next order that has enough funds to cover it. Here's a breakdown of the process:

  1. A Chargeback is initiated.

  2. The disputed amount is deducted from your next order with sufficient funds.

  3. If you win the dispute, the deducted amount is refunded to you, minus a $15 fee retained by the payment processor (Stripe).

  4. If you lose the dispute both the dispute amount AND $15 dispute fee will be taken out by Stripe.

    You can see a quick guide on how to access this section in the guide below:

Financial Chargebacks Report To track multiple transactions and their details at a quick glance, we have introduced a new report called the "Financial Chargebacks Report." This report consolidates data directly from Stripe and provides a clear overview of your Chargebacks. It's accessible within the Reports section.

Viewing Chargebacks

  1. Go to Financial > Chargebacks.

  2. Make sure that all of your locations are selected.

  3. Select the time period for which you want to view chargebacks.

  4. Click Run.

Understanding Chargeback Deductions

The chargeback report shows the following information:

  • Order: The order that was disputed.

  • Won/Lost: Whether you won or lost the chargeback dispute.

  • Reason: The reason for the dispute.

  • Chargeback Deducted From: The payment account from which the chargeback was deducted.

  • Chargeback Date Deducted: The date on which the funds were deducted from your account.

  • Initial Chargeback Amount: The amount of the original chargeback.

  • Fee: The fee charged by the payment processor for the chargeback.

  • Total Amount: The total amount deducted from your account, including the chargeback amount and fee.

  • Returned: Whether the funds were returned to your account because you won the dispute.

Viewing Returned Funds

To view when returned funds were deposited into your account:

  1. Go to Manage Payments.

  2. Select the date on which the funds were returned to your account.

  3. Click Payouts.

  4. The returned funds will be listed in the payout.

Note: Stripe uses UTC time, while DeliverLogic uses regular time. This means that if you return funds to a customer on a particular day in UTC, the funds may not appear in their account until the following day in regular time.

We understand that these changes may raise questions, and we're here to assist you every step of the way. If you have any concerns with disputes going forward, please don't hesitate to reach out to us by https://deliverlogic.atlassian.net/wiki/spaces/BSD/pages/2235465735 and our support team will try to get an answer to you as soon as possible.

Thank you for choosing Deliver Logic. We are committed to providing you with the best possible service and support. Your success is our priority.

Keywords:

  • Stripe chargeback

  • Chargeback changes

  • Dispute Chargeback

  • Credit Card Chargebacks