All you need to know about handling disputed payments made to your club.
When using Stripe Connect Express to process payments for your club, you may occasionally encounter a dispute. A dispute occurs when a cardholder questions a charge with their card issuer. This article explains how disputes work, the steps you should take, and how you can best resolve them.
What is a dispute?
A dispute is when a cardholder contacts their bank or card issuer to challenge a charge made on their card. This may happen for various reasons, including:
- The cardholder doesn’t recognise the charge.
- They believe the product or service wasn’t delivered.
- They suspect fraud or unauthorised use of their card.
Once a dispute is raised, Stripe places the funds for the transaction on hold. We will notify you, and you can see the dispute on your Pitchero Dispute Dashboard.
What happens during a dispute?
When a dispute occurs:
- The disputed amount will be Held: The funds from the original charge will be temporarily withdrawn from your balance until the dispute is resolved.
- You will be charged a dispute fee: This is £15 and is non-refundable regardless of the outcome of the dispute
- You will receive a notification: You will receive a notification in your Pitchero account and an email alerting you about the dispute.
- You will be able to respond: You will have the chance to provide evidence to challenge the dispute and prove the charge was valid.
Responding to a dispute
1. Review the dispute
When notified of a dispute, log into your Pitchero account and navigate to the Disputes section in Payment Tools. Here, you can view details about the dispute, including:
- The reason for the dispute:
- Duplicate
- Fraudulent
- Product not received
- Product unacceptable
- Subscription cancelled
- Unrecognised
- Credit not processed
- General
- The transaction date and amount in question.
- The Due Date to provide any evidence to challenge the dispute
2. Gather evidence
To successfully challenge a dispute, you’ll need to provide supporting evidence to show the charge was legitimate. Some examples of useful evidence include:
- Receipts or invoices that show the product/service was delivered.
- Proof of delivery such as tracking information or signed delivery confirmations.
- Member communication that demonstrates the cardholder received and acknowledged the product or service.
3. Submit evidence
You can email your evidence directly to support@pitchero.com. Be sure to include:
- Club Name in the email subject line
- A detailed description of the transaction.
- Any supporting documents, such as the ones mentioned above.
Important: You usually have a limited amount of time (often 7-21 days, depending on the card network) to respond to the dispute, so it's important to act quickly.
Dispute outcomes
Once you submit your evidence, the card issuer will review it and decide the outcome. There are two possible results:
- The dispute is resolved in your favour: If the card issuer rules in your favour, the held funds will be returned to your account, and the dispute will be closed.
- The dispute is lost: If the card issuer sides with the cardholder, the funds will be refunded to them.
For more information on the fees incurred please see our Terms and Conditions here.
How to prevent disputes
While disputes are an inevitable part of accepting online payments, there are steps you can take to reduce their likelihood:
- Use clear and detailed descriptions of your products or services on your website.
- Communicate clearly with your customers regarding delivery times and expectations.
- Ensure your billing descriptor (the name that appears on a customer’s card statement) is recognisable.