Please note: You should never pass your Sync™ account on to someone else. The account owner who completed identity verification is liable for any disputes / chargebacks incurred by payments taken through your account.
What is a dispute / chargeback? #
A chargeback is when a customer disputes a card transaction, challenging its validity. The customer’s bank will request further information about the transaction and then review the details to determine whether to uphold the chargeback.
If the customer’s bank decides to close the chargeback in the favour of the customer, the disputed amount and a dispute fee is passed onto the merchant. However, if the customer’s bank decides to close the chargeback in the favour of the merchant, the disputed amount and dispute fee is returned to the merchant.
Why do chargebacks occur? #
There are a number of different reasons as to why a chargeback is raised by a cardholder. The most common reasons are listed below:
Unrecognised or unexpected payment #
A customer may review their card statement and see a payment that they do not recognise. They will then alert their bank or card issuer, where the transaction will be disputed and a refund requested. The refund requested can either be a partial or the full amount of the transaction. This can happen due to:
- A customer doesn’t recognise a business’s statement descriptor
- A customer is charged multiple times for a transaction
- A customer is charge the incorrect amount for a transaction
- A customer didn’t authorise their payment using their card
Ensure your Statement Descriptor is clear to help your customer’s recognise the transaction on their bank statement – it should match your business name or describe your service. Edit your Statement Descriptor in the Sync™ app by going to ‘More’ then ‘My Business’.
Unsatisfied with the product or service provided #
A customer may recognise the transaction on their card statement but be unsatisfied with the product or service they received. This can happen due to:
- A customer paying for a product or service that is not as described or faulty
- A customer not receiving the product or service
- A customer doesn’t receive a refund that was agreed upon
What happens if I get a chargeback? #
If your customer raises a chargeback with their bank and disputes a payment, the following steps will occur:
- The Customer will contact their bank about a specific transaction. They will either dispute a partial or full amount of the transaction and provide their bank with a reason as to why they are disputing the transaction.
- The Customer’s bank will then contact Sync™ payment processor Stripe, who then passes this information onto Sync™.
- Sync™ will notify the Merchant via email if they have received a dispute. The email will contain all the payment information including the amount, the time and date it was taken and any relevant information that has been provided by the Customer’s bank as to why a dispute was raised. At the same time, the disputed amount and the dispute admin fee is deducted from the merchant’s Sync™ balance and held by the Customer’s bank.
- The Merchant will be asked how they want to respond to the chargeback. The Merchant can contest or accept the chargeback before the deadline provided. If the Merchant wishes to contest the dispute, they can provide any relevant information and evidence to counter the case made by the Customer.
- If the merchant wishes to context the chargeback, Sync™ will collate the information to support the Merchant’s case and submit the challenge on their behalf. If the deadline to provide a response is missed or if the Merchant accepts the dispute, then the cardholder ‘wins’ the dispute and the funds are returned to the Customer.
- The Customer’s bank will then review the information provided and decide whether to uphold or overturn the Customer’s dispute. It can take up to 90 days before a decision is provided:
- If the cardholder’s bank closes the dispute in the favour of the cardholder, the disputed funds are returned to the Customer.
- If the cardholder’s bank closes the dispute in the favour of the merchant, the disputed funds are returned to the Merchant’s Sync™ balance.
Please note: Sync™ cannot guarantee that a dispute will be overturned by the cardholder’s bank. However if a merchant provides sufficient compelling evidence, it increases the probability of a positive outcome.
In addition, once a decision has been made by the cardholder’s bank, the decision is final for all parties: You can’t overturn a lost dispute, but your customer also can’t overturn a dispute decided in your favour.
How can I increase my chances of winning a chargeback? #
Depending on the type of chargeback raised by the customer, there are a number of different ways to contest them.
Product unacceptable #
This is when a customer claims that the quality of the product they had received wasn’t as described or advertised.
- Evidence that the product sold matched the description or how it was advertised
- Evidence that the product sold wasn’t damaged or defective
- Proof that the product was not returned by the customer and they did not contact you notifying of any issues
- Communication or signed documentation showing that customer had received the product and was satisfied with it
Service unacceptable #
This is when a customer claims the quality of the service they had received was not as described or advertised.
- Evidence the service provided was as described or advertised
- Proof that the customer had not contacted you about the issue
- Communication with the customer regarding the service provided, showing that they were satisfied
- Communication or signed documentation showing that customer had received the service and was satisfied with it
Product or service not received #
This is when a customer claims that they had never received the product or service that they paid for.
- Evidence that the product or service was provided to the customer e.g. sales invoice
- Communication or signed documentation showing that customer had received the product or service
Credit not processed #
This is when a customer claims that a refund was not processed by the merchant.
- Evidence to show the total amount of the product or service e.g. sales invoice
- If refund was offered, evidence to show that it was provided to the customer
- If refund was not agreed, a written return or cancellation policy
- Proof that the customer hadn’t returned the product
For any further questions or help, please email us at support@Sync™.com.
