The following are the FAQs about handling chargebacks from customers when using the D-Tools Payment solution.
Q: How will I be informed of a chargeback?
A: You will receive an email from D-Tools informing you that you received a chargeback. The email will contain the transaction details and the customer's information.
Q: What is the fee for contesting a single chargeback?
A: You will incur a fee of $25 to contest a chargeback, whether on a Credit Card or an ACH payment.
This fee helps us cover the costs of processing the chargeback, investigating the dispute, and other related expenses.
Q: What happens when a customer files for a chargeback?
A: When a customer files a chargeback, the transaction amount relevant to the chargeback is taken from your bank account and temporarily credited to the customer's account.
Additionally, the $25 fee to contest the chargeback is deducted from your bank account.
If you win the chargeback dispute, the transaction amount is refunded to your account from the customer's account and credited in the next deposit.
Q: What are the reasons customers initiate chargebacks?
A: Customers may initiate chargebacks for one of the following reasons.
Fraud - here, the customer does not recognize the transaction and believes their card has been compromised.
Authorization - here, the customer believes proper authorizations weren’t completed before settling the transaction.
Processing Error - here, the customer may have experienced issues when processing the transaction.
Consumer Disputes - here, the customer has faced issues with project execution or service fulfillment.
D-Tools will provide you with the chargeback reason code and a description of the code in the emails you receive about chargebacks.
Q: How do I contest a chargeback?
A: Upon receiving the email from D-Tools about a chargeback, collect all evidence listed here for the chargeback reason and submit the evidence under "Billing > Chargebacks" on Cloud.
Ensure that the rebuttal letter is descriptive and has all details about the evidence.
Check out this article for more details.
D-Tools will contest the chargeback on your behalf using the evidence you provide and help you win the dispute if the chargeback is unwarranted.
You can check the progress of all your chargeback disputes on Cloud.
Q: What evidence should I provide to contest a chargeback?
A: When you receive an email from D-Tools about a chargeback, you should gather evidence to contest the chargeback.
Here is a table depicting the different chargeback reasons and the types of evidence required for each reason.
Gathering and including all required evidence when contesting a chargeback dispute increases your chances of winning the dispute.
Here is a brief description of the different types of evidence.
Evidence | Description |
Rebuttal letter | A rebuttal letter is a recap of what your evidence package includes and how it argues against the reason code of the chargeback. |
3DS proof | Evidence that the transaction in question went through the process of 3D Secure authentication, including the ECI code returned with the authentication. |
Proof of credit | Screenshots showing that a refund was issued for this customer.
It is recommended to include timestamps and any transaction IDs if available. |
Transaction history | History showing that this customer has had multiple non-disputed transactions with you in the past. |
Invoice | Copies of any invoices related to that transaction.
It is a bonus if this invoice includes a wet signature or electronic signature from the cardholder. |
Proof of delivery | Tracking details with delivery pictures showing that the cardholder received their product.
For digital purchases, email delivery or login history will also work. |
Recurring billing agreement | Screenshots highlighting that the cardholder agreed to enter a recurring agreement. |
Photographic evidence | Screenshots showing the cardholder has the product or was present during the time of service. |
Signed purchase order | Copies of any purchase order that has a wet or electronic signature from the cardholder. |
Email or other historical communication | Any records you have of communication with the cardholder can be beneficial in disproving fraud or showing that you were unwilling to resolve the issue.
Equally as important, you can explain that the cardholder never contacted you, disproving a credit being owed or a cancellation not taking place. |
AVS verification | Proof that, as a merchant, you confirmed that the address that was provided to you related to the transaction and/or shipping. |
Proof of authorization | Proof that the customer understood what they were being billed for and the amount before the transaction occurred. |
Q: How do I prevent chargebacks?
A: While never completely avoidable, you can take a few steps to lower your chargeback risk.
The best practices listed below are based on how D-Tools' customers usually operate and the Cloud app capabilities they can leverage to implement the best practice.
Allow for payment-related grievances to be heard easily
Set up an email or alias to address payment-related issues with your customers. If the customer can settle the issue with you, they are much less likely to file for a chargeback.
Introduce customers to your payment support process in the proposals
Describe your company's process for supporting payment-related issues in the proposal. Highlight that your customers can contact the designated payment support email or alias to resolve payment-related disputes.
Step up your project execution and service fulfillment efforts
Cloud has built-in capabilities for Field users to gather photographic evidence via the photos of the installation, repair, and replacement activities they perform at the work site.
Ensure your Field users update the tasks, events, and service call work summary with photographic evidence.
Ensure your Field users obtain a customer sign-off for the tasks, events, and service activities.