PracticeQ Payments: Disputes

Payment disputes have become more common recently; the PracticeQ Payments team is happy to provide this guide for managing disputes. 

• For cardholders aware of the dispute process, a dispute can be seen as an "easy refund" path to avoid working with a merchant to resolve a disagreement about payment. 
• Dispute fraud (knowingly submitting a fraudulent dispute) is also on the rise, so it is important for merchants to protect themselves against dispute submissions. 
• Disputes can harm your reputation with card companies and payment processors, especially when they are lost. Card companies and payment processors, along with their funding banks, both have a risk threshold when it comes to working with merchants. This is based on many criteria such as your services/products and your credit. Fraud risk and risk of disputes is also considered when these companies work with you. If your ratio of payments vs. disputes is too high, processors may refuse to work with you.

What is a Dispute/Chargeback?

• A chargeback is a dispute initiated by a customer against the merchant who accepted their card as payment in exchange for goods or services. The chargeback process is available as a protection for cardholders against fraud and merchants who do not provide their product/service as promised. 
• When a bank receives a chargeback dispute from one of their cardholders, they open an investigation by contacting the processor (PracticeQ Payments) and requesting evidence that the product/service was provided. PracticeQ Payments will then notify the merchant of the chargeback and advise as to what documentation should be provided. 
• While rare for most merchants, chargebacks can be a costly and time-consuming strain. Dishonest cardholders try to take advantage of the system and the burden is on the merchant to prove that they fulfilled their commitment to the cardholder. 
• We recommend that you respond to all disputes as quickly as possible and try to resolve issues with your customers before they result in a dispute/chargeback.

Common Dispute/Chargeback Reasons

• Fraudulent transactions.
• Duplicated charges.
• Not as described/defective merchandise.
• Services not provided or merchandise not received.
• Refund not processed after returned item.

How Can I Avoid a Dispute?

• PracticeQ offers tips here: PracticeQ Payments - Dispute Prevention.

I see a Dispute - Now What?

• You can submit evidence to fight the dispute. Read more here: PracticeQ Payments: Address a Dispute.

Money Matters

• You may be wondering what exactly happens to the funds from the disputed transaction, and when it will affect you as the merchant. Read more here: PracticeQ Payments: Dispute Funds Transfer.

Win/Loss Decision

• Ultimately, it is not PracticeQ, nor PracticeQ Payment's processor, who decides who wins or loses a dispute. The cardholder’s financial institution/card company will review the evidence provided and render a decision following their review of both sides.
• At this stage, usually shortly following the respond by date, you will see the dispute State update to Won or Lost. Reach out to us if you would like further information on the decision made. Sometimes the cardholder’s financial institution will include details when advising our processor of the dispute decision, but not in all cases. 

Pre-Arbitration

• Pre-arbitration is a stage that occurs when the cardholder/issuer appeals/rejects the documentation provided by the merchant. 
• Read more about pre-arbitration and arbitration here: PracticeQ Payments: Dispute Arbitration.

If you have any issues uploading dispute documentation, or receive an error, please contact support at hello@intakeq.com to ensure this is handled.