If you accept credit card payments with Bill.com, you may receive a notification from Bill.com about a chargeback from your customer. If you accept credit card payments through Vantage, you'll manage chargebacks through their customer portal.
Jump to:
- What is a chargeback?
- How will I know when my customer has filed a chargeback?
- What do I do when I receive a chargeback?
- What information do you need from me in order to challenge a chargeback?
- What happens to my account when I receive a chargeback?
- How long do I have to respond to a chargeback?
- How far back can customers dispute transactions?
- What happens after I submit the necessary documentation?
- How long does the dispute resolution process take and when will I receive a decision from the cardholders bank?
- What happens to my account if the dispute is resolved in favor of the cardholder?
- What happens to my account if the dispute is resolved in my favor?
- Should I contact the cardholder to resolve the dispute?
- Tips for avoiding chargebacks
What is a chargeback?
A chargeback occurs when your customer/cardholder contacts their bank or credit card company to dispute the charge. Chargebacks are also known as "charge disputes" or reversals. Cardholders can file chargeback/dispute for a variety of reasons, including unauthorized use of the credit card.
Common reasons for disputes include:
- The cardholder does not recognize the charge on their bank statement.
- The cardholder did not receive the product/service.
- The cardholder feels that the product/service was defective, damaged, or not as described.
- The cardholder's credit card was stolen or used without their consent.
How will I know when my customer has filed a chargeback?
The Bill.com Dispute Support team will send an email notification to you. To review the email, follow these steps:
- Log in to the Bill.com account associated with the ticket
- Select Support in the navigation menu
- In the Support Center, select Message Center
- Select the Ticket ID or the subject line of the corresponding ticket
- To reply, enter comments or questions in the open text field and select Submit.
What do I do when I receive a chargeback?
There are two options, you can accept the chargeback or in many but not all cases, you can challenge the chargeback. To challenge the chargeback, please provide as much information as possible to our Dispute Support Team so that they can submit the chargeback to the cardholder’s bank. Bill.com’s Dispute Support Team will help you review that documentation and may request more documentation if needed.
What information do you need from me in order to challenge a chargeback?
At a minimum we need following information:
- Description of the product/services
- Copy of Invoice
- Proof that product/services was received by the cardholder
- Copies of communication between you and your customer about the disputed transaction.
What happens to my account when I receive a chargeback?
Bill.com will deduct the disputed amount from your bank account.
How long do I have to respond to a chargeback?
The Bill.com Dispute Support Team will provide you with a deadline by which we will need to receive the information described above to challenge the chargeback. That deadline will be in the email we send you about the chargeback. Normally, we will require this information within 7 to 10 days from the date we notify you of the chargeback. If you do not submit the needed information by the deadline, then we will no longer be able to challenge the chargeback through the cardholder’s bank.
How far back can customers dispute transactions?
Generally cardholders have 120 days to submit chargebacks from the transaction date. For example, if the transaction date is 1/1/2022, the cardholder will normally have until 5/1/2022 to submit the chargeback.
What happens after I submit the necessary documentation?
The Bill.com Dispute Support Team will review the information you provide to us and will send that information to the cardholder’s bank as evidence of why you are disputing the chargeback.
How long does the dispute resolution process take and when will I receive a decision from the cardholders bank?
Dispute resolution normally takes between 30-45 days from the day the Bill.com Dispute Support Team submits the evidence. The resolution of the chargeback dispute is not controlled by Bill.com and sometimes the process takes longer.
What happens to my account if the dispute is resolved in favor of the cardholder?
If Bill.com already deducted the chargeback from your bank account then if the dispute is resolved in the cardholder's favor, your bank account balance will not change and you will not receive the payment. The funds deducted from your bank account are returned to the customer/cardholder.
What happens to my account if the dispute is resolved in my favor?
Bill.com will process a credit to your bank account.
Should I contact the cardholder to resolve the dispute?
Yes, it is recommended that you contact the cardholder. If they state the dispute was an error they should contact their bank to cancel the chargeback.
Bill.com will make reasonable efforts to represent your case with the documentation and information available to us. However, please note that the cardholder's bank will decide the dispute. Bill.com cannot guarantee that Your challenge will be successful and is not responsible if the cardholder’s bank rules in favor of the cardholder.
Tips for avoiding chargebacks
Consider the following tips for preventing chargeback/disputes and protecting your business:
- On the invoice describe your products and services in as much detail as possible.
- Make return and refund policies easily accessible to all customers. Ensure that these policies are available to customers during the purchase.
- Provide easy access to customer service. Ensure customer service contact information is visible so customers can contact you with questions or concerns.
- Use a shipping method that provides a tracking number and requires a signature from the recipient for high value merchandise.
- Keep records of the date on which the merchandise was shipped, the shipping method used, and any available tracking information for at least 6 months past the order date.
- Keep records of the date on which services were provided, including pictures of before and after the service (if possible).
- Retain a copy of the order confirmation email or receipt that was provided to your customer.
- Retain a copy of any communication that you had with the customer.
