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What to Do When a Customer Disputes a Charge
What to Do When a Customer Disputes a Charge
Euri Romanov avatar
Written by Euri Romanov
Updated over 6 months ago

What is a dispute?

When a cardholder disputes a payment made to your business by contacting their card issuer, a chargeback is initiated. This immediately reverses the payment, and the amount, along with a separate dispute fee from the card network, is deducted from your account balance. You can respond to the dispute and provide evidence supporting the charge’s validity. If you win the dispute, the funds will be returned to your account. However, if the dispute is upheld, the charge remains refunded. The dispute resolution process can take 2-3 months for a final decision.
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Steps to Take When Facing a Dispute

Upon a dispute initiation, you will be notified via email by our support team that a customer has disputed a charge. To effectively address and potentially overturn the dispute, you are encouraged to submit relevant evidence, which may include:

  • Customer Communication: Any correspondence with the customer that could support your case (SMS, Email threads)

  • Customer Signature: Documents or contracts bearing the customer's signature, relevant to the transaction.

  • Service Documentation: Proof that the service was rendered, including the date the service was received by the customer.

  • Receipts: Transaction receipts or any financial documentation related to the disputed charge.
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It is crucial to gather and submit this evidence promptly to stand the best chance of having the dispute resolved in your favor. You can reply directly to the dispute email that was sent to you by our Cents Support Team, or you can simply email us at [email protected] with the requested evidence.
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Preventing Future Disputes

To maintain a healthy business environment and minimize financial losses, it's essential to preempt disputes. For strategies and best practices on preventing disputes, see the suggested strategies below:

  1. Clear Communication: Ensure all communication with the customer is clear and concise. This includes detailed product descriptions, accurate images, and clear terms and conditions. Providing comprehensive information can help set the right expectations and reduce misunderstandings.

  2. Transparent Policies: Make sure your return, refund, and cancellation policies are easy to find and understand. Transparent policies help manage customer expectations and reduce dissatisfaction.

  3. Prompt Customer Service: Offer excellent customer service, including easy ways for customers to get in touch (like phone, email). Respond promptly to inquiries and complaints. A satisfied customer is less likely to file a dispute.

  4. Quality Control: Ensure that products are of high quality and match their descriptions accurately. Implement quality control checks before shipping items to prevent disputes related to product quality or misrepresentation.​


Financial Implications of Unresolved Disputes

Should the dispute resolution process conclude not in your favor, the disputed amount plus an additional $15 fee per transaction will be charged to your payment method on file. While Cents assists in the resolution process, it's important to note that the final decision rests solely with the cardholder's bank.
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Conclusion

Disputes can be challenging, but by understanding the process, gathering relevant evidence, and taking proactive steps to prevent future disputes, you can navigate these situations more effectively. Remember, the key to a successful resolution lies in prompt action and clear, comprehensive documentation.

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