A dispute, commonly referred to as a chargeback, arises when a customer rejects a payment they made to you through their bank or credit card provider. This can happen for various reasons.

If a dispute is filed, you can submit evidence supporting the legitimacy of the transaction. However, before proceeding with the dispute process, it is always advisable to first contact the customer directly. This allows you to understand why they filed the dispute and, in many cases, resolve the issue before it escalates.

If the dispute was made in error, the customer may withdraw it, and everything returns to normal. However, if the customer decides to proceed with the chargeback, financial institutions have a set process to protect consumers from unauthorized charges or unsatisfactory products and services. As a part of this process, the disputed payment amount will be withdrawn from your connected bank account, along with a dispute fee.

Please note that Zuper Pay adheres to the card network rules and has no control over this process. We cannot influence the outcome or the timeline of a dispute.

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Common types of disputes

Disputes can occur for various reasons. Each type requires different actions on your part. Here are the most common types:

  • Credit Not Processed: The customer claims they are entitled to a refund because they returned the product, canceled the transaction, or didn’t use the service fully. However, you haven’t processed the refund or credit yet.
  • Duplicate: The customer claims they were charged multiple times for the same product or service.
  • Fraudulent: This is the most frequent reason for disputes. It occurs when the customer claims they didn’t authorize the payment. This could be due to a genuine fraud or misunderstanding where the customer didn’t recognize a legitimate charge.
  • General: This is an uncategorized dispute. In this case, contacting the customer is best to clarify why they’re disputing the charge.
  • Unrecognized: The customer doesn’t recognize the payment on their statement.

Each type of dispute comes with its own unique set of requirements, so understanding the specific reason behind the dispute is key to resolving it efficiently.

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How to view dispute transactions

To view any dispute transactions in your Zuper Pay account, navigate to your Zuper Pay Dashboard. The dashboard overview has the option to View all Disputes, or you can filter out dispute transactions on the Payments listing page.

By selecting a specific dispute from the listing and clicking View Details, you can access comprehensive information about the dispute, including whether you want to Accept or Counter it.

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How to review the dispute and determine next steps

Once you identify a dispute, it is important to review all available information. Understand why the dispute occurred and decide whether it’s based on a misunderstanding or a legitimate issue.

We recommend contacting your customer directly, as many disputes result from simple errors, such as forgetting a transaction or misinterpreting a charge. If they acknowledge the error, they may wish to withdraw the dispute.

Important: Even if a customer confirms a chargeback was made in error, you must submit evidence to the bank. If the customer withdraws the chargeback, request written confirmation from their card issuer. Failing to provide evidence may result in losing the dispute, even if the chargeback is withdrawn.

Note: Once a dispute is reported, all evidence must be submitted by the due date. Typically, this is 8-10 days from the dispute’s reported date.

After contacting your customer, they are still going ahead with the dispute. There are two ways to move forward:

1.    Accept dispute – You can accept the dispute if you agree that the dispute is valid and the payment should be returned to the customer. Accepting a dispute does not negatively impact your business.

2.    Counter dispute – To counter a dispute, provide evidence to show the bank or card issuer that the charge to the customer is legitimate. For more details, see How to counter a dispute.

Depending on your choice, select the button to Accept Dispute or Counter Dispute.

Note: A $15 fee will be charged for disputing a transaction, and this fee will not be returned, even if the dispute is successful.

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How to counter a dispute

After clicking Counter Dispute, you will need to provide the necessary information and supporting evidence to help resolve the dispute in your favour.

1. Dispute Details

Provide all relevant information to explain why you should win the dispute and clarify the nature of the service or product. This includes:

  • Explanation: Clearly explain why the dispute is invalid and why the charge is justified.
  • Service or Product Description: Provide a detailed description of the product or service offered.
  • Service Date: Include the date(s) when the service was provided or when the product was delivered.

2. Customer and Billing Information

Enter the customer’s details and billing information to confirm the transaction:

  • Customer’s Name
  • Customer’s Email Address
  • Billing Address

3. Supporting Evidence

Upload all necessary documents and files that support your case. The types of evidence you may need to submit include:

  • Documentation of Communication: Submit emails, text messages, or other forms of communication that demonstrate the service or product was provided as agreed.
  • Signed Agreements: Upload any signed documents, such as contracts, quotes, or work orders, that prove the customer agreed to the service/product terms.
  • Photos or Videos: Provide before-and-after photos (if applicable), screenshots of completed work, or any other visual evidence showing the service/product delivered.
  • Proof of Refund (if applicable): If the dispute is for the full charge amount but a partial refund has been issued, include evidence of the partial refund. This should include the amount refunded, the date, and a screenshot of the refund details.
  • Other Relevant Evidence: This may include terms of service, GPS data, job logs, payment evidence, and proof of acceptance.

After completing these steps and uploading all necessary evidence, you will be directed to the final review page. Click “Review” to ensure all details are accurate and you’ve uploaded the correct supporting evidence.

Once you’re confident everything is in order, click Submit to finalize and submit your dispute response.

What Happens After Submitting Evidence

After you submit your evidence, the customer’s bank will review the information and make a final decision about the dispute. ZuperPay cannot influence this process or speed it up.

  • If the dispute is resolved in your favour, the disputed amount and any fees will be returned to you. Note that the dispute resolution fee of $15 will not be refunded.
  • If the dispute is resolved in the customer’s favour, the disputed funds and fees will not be returned.

The timeline for dispute resolution is determined by the financial institution that issued the customer’s credit card.

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ACH disputes

Disputes related to ACH payments are relatively rare, as these are transactions that customers have deliberately authorized through their bank. ACH disputes follow a different process, managed by the National Automated Clearinghouse Association (NACHA), which does not offer a chargeback mechanism like credit card networks.

When an ACH dispute is formalized, the funds are automatically returned to the customer, and unfortunately, these disputes cannot be contested. If an ACH dispute arises, we strongly recommend reaching out directly to your customer to resolve the issue.