PracticeQ Payments: Dispute Funds Transfer
Below is what happens to the funds from a disputed transaction, and when it will affect you as the merchant.
- First, there is a $25.00 dispute fee per transaction chargeback. This amount is non-refundable, meaning it does not get returned to you even if you win the dispute, or if the cardholder decides to reverse the dispute.
- As for the transaction amount, that is first funded by the payment processor at the time of the dispute submission, and then it is withdrawn from your bank account as part of that day’s deposit batch. You will see a refund line appear on your Payments tab for that day as well, signaling that funds were withdrawn and are being held.
- For more information on deposit batching, see the article PracticeQ Payments: Deposit Schedule.
- In some cases, you may notice that the transaction funds are deposited back into your bank account once your evidence has been submitted. This is a good faith return of funds that some financial companies perform. Please note that this should not be taken as an indication that the dispute has been won, and it does not happen in all dispute cases.
- If you have received a good faith deposit and ultimately win the dispute, no further funds will be exchanged. However, the money will be deducted from your account if you lose.
- If you do not receive a good faith payment at the time of evidence upload, you must await the outcome of the dispute. You will receive the funds back if you win, or have no further funds exchanged if you lose, as the money still being held will be returned to the cardholder.