We know that the dispute process can be confusing and frustrating. Please use this article for suggestions and next steps if one of your customers disputes a charge with their bank or credit card company. OMG will work on your behalf to send our CC processor, Stripe, all the necessary information.
The Dispute Process
When one of your customers disputes a charge, we're notified by the credit card processor who has been contacted by his or her bank. The bank automatically refunds the transaction and passes on details of the disputed charge to the credit card processor. They pass on the information to us so we can provide it to you. Since the payment has been returned to your customer, we'll deduct this amount and the chargeback fee ($15.00) from your payment method on file. You can see this on your Billing tab under Dealer Settings.
The good news is that you still have a chance to resolve the dispute and receive the amount and fee back. You can respond to the dispute and we will work with the credit card processor; your customer's bank then makes the ultimate decision about how to resolve the dispute. If the dispute is resolved in your favor by your customer's bank or credit card company, we'll return both the disputed amount and the fee.
Disputes are handled by your customer's bank, so we don't have any specific information about how this payment will be reviewed. However, we do want you to have the best chance possible in responding to these disputes.
Steps to take when you receive a dispute
1) We first suggest that you contact the customer to understand why they disputed their charge. If they disputed the charge in error you should have them contact their bank to officially drop the dispute.
2) Send evidence to email@example.com by the response date given on the email that you received. Evidence can include email correspondence with your customer, tracking information, terms of service on your store, etc.
Note: You should also email firstname.lastname@example.org even if the customer has agreed to drop the dispute.
3) Once evidence is submitted to the dispute email, OMG will submit the evidence you provide on your behalf to our CC processor to be reviewed by the customer's bank or credit card company.
4) The dispute process can take quite a while—it’s not unusual for us to not hear from the bank for 60-70 days after the dispute.
5) If the dispute is Won, the billing email address on file will receive a notification via email and the funds will be returned to your account in 5-10 business days.
Frequently Asked Questions
I want to just give the customer a refund instead. Can I do that?
Unfortunately, once a dispute has arrived, there’s no way for you to refund the charge. Your customer has already received the amount of the dispute back from their bank, so if you agree with the decision to refund, you don’t need to take any action and your customer will keep their funds.
My customer said the dispute was a mistake. How do I get the dispute reversed?
First, have your customer call their bank and let them know they want to drop the dispute. This is critical as the bank won’t know your customer has dropped it unless your customer tells them.
Secondly, even though the customer has already agreed to withdraw the dispute through their bank, you must still submit evidence to us for the dispute. Your evidence should indicate to the bank that your customer wishes to drop the dispute and must include any email evidence where the customer says that. If your customer has specific complaints that led to the dispute, be sure to address those in the evidence.
Note: Failing to provide evidence even though the customer agreed to drop the dispute could still result in you losing the dispute.
After following those two steps, we have to wait for the bank to let us know that the dispute has been closed in your favor. As soon as they do, we will return the full amount of the charge and the associated $15.00 fee to you. You will also receive an email notifying you that the dispute was closed in your favor.
Pro Tip: You can expedite the process after the customer has dropped the dispute with a few additional steps. The customer will need to provide an official bank letter stating the dispute has been dropped which they should receive this from their bank within 7 days of withdrawing their dispute. They can also send a screenshot of their statement showing they have been re-billed. This must include the last 4 digits of their account number. With this information, our CC processor will be able to return the funds without having to wait for the bank to let us know the dispute has been dropped.
Is there a fee for disputes?
Yes, you incur a $15.00 fee when there is a dispute on one of your transactions. If the dispute is resolved in your favor, however, the fee will be refunded.
My customer's credit card was compromised. Can I change their card on file?
You won't be able to change the customer's credit card info within OMG. The customer will still need to contact their bank to OK their charge even if their card has been compromised. The bank will typically handle transferring this legitimate charge to their new card.
Can I submit late evidence?
Please note the respond by date on the customer information. This is the last day that evidence can be submitted to fight the dispute. Once that day has passed no more evidence can be sent in. Failing to submit evidence may result in a lost dispute.
What happens when the dispute is lost?
Unfortunately, we do not have insight into how the customer's bank reaches a decision. If the dispute is lost, the bank has decided that the funds stay with the customer and will not be returned to you. If the dispute is lost you will need to work directly with your customer and they would need to pay you back directly.