A dispute (also called a chargeback) occurs when a client disagrees with a transaction and requests a refund from their bank or credit card company. One of the most common reasons for a dispute is when your client doesn't recognize the charge on their bank statement.
With Dubsado Payments, disputes will follow how Stripe handles their disputes. The process typically looks like this:
Your client disputes a charge that they see on their credit card.
Stripe sends you an email regarding the dispute.
You choose to challenge or accept the dispute.
If you challenge the dispute, you'll need to provide documentation to Stripe.
After Stripe evaluates the documentation, Stripe provides a decision on the dispute.
Challenging or accepting the dispute
If you believe the dispute reason is incorrect and want to challenge it, you can upload evidence supporting why the payment was valid through your Stripe Dashboard. After you submit evidence, Stripe sends it to the card issuer for their review.
Accepting the dispute means you're agreeing that the dispute is valid and that you don't plan on challenging it. For more information, see Stripe's FAQ page on accepting disputes.
Heads up! If you want to challenge a dispute, make sure you respond promptly. The exact timeframe depends on your client's card issuer, but most require a response within 7-21 days.
Final decisions on disputes
When Stripe makes a decision, the status of the dispute updates in your Stripe dashboard as "won" or "lost." This outcome is final, so while you can't overturn the dispute, that also means your client can't overturn it either.
Dispute fees
Dispute fees are commonly used by most payment processors to help offset the time, cost, and resources put into settling a dispute.
Stripe's dispute fee is 15 USD per dispute. If your currency isn't USD, the dispute fee is 15 in your local currency. This amount isn't refundable, even if you win the dispute. For more information, see our article on processing fees.
Dispute average timelines
Disputes take around 2-3 months to complete, starting from when your client initiates the dispute to the final decision being made. The only way to speed up this timeline is to accept the dispute. For more details, see Stripe's documentation on dispute timing.
FAQ
If I lose a dispute, can I recoup the processing fees?
No. The processing fee associated with a particular payment cannot be refunded to the business owner, regardless of the dispute outcome.
Can Dubsado affect the outcome of a dispute?
No, Dubsado cannot affect the outcome of a dispute. The dispute process is handled entirely by Stripe.