A chargeback, which is also called a dispute, occurs when someone questions a payment made with their card. This could be one of your supporters or someone who believes their card was used without permission on your Buy Me a Coffee page.
When a chargeback happens, the card issuer or bank follows a formal process, taking the disputed amount and an extra fee from your account. But don't worry, you can defend yourself. You can explain your side and show proof that the payment was legitimate.
If the dispute is resolved in your favor, you'll get the disputed money back. However, if the card issuer agrees with the person disputing the payment, you won't receive the funds. It's important to note that resolving a dispute takes about 2-3 months before the bank reaches a final decision.
Breakdown of the chargeback process:
If a supporter tells their bank they have a problem with a payment, the bank starts a chargeback.
Creators are notified through email and dashboard regarding this.
If you believe that the dispute reason is incorrect and you want to counter it, you can upload evidence by clicking on the Submit button near your dispute from your payouts page. Please note that it may take up to 24 hours for the status to change from "Submit" to "Submitted" once you have uploaded the evidence, as we require manual processing for the upload.
We can assist you with your case, even if you haven't submitted the necessary documents in the last 2 days. However, providing the required documents will strengthen your case, as we trust you can provide the best evidence to support your situation.
The bank looks at the evidence from both sides and then makes a decision that is final and cannot be appealed or challenged.
What should I do if I know the supporter who raised a dispute?
If you're familiar with the supporter who initiated a chargeback, simply talk to them to remind them of the reason for their payment. If they agree that the chargeback isn't needed, ask them to contact their bank to cancel it and request a letter confirming this cancellation. Once you have that letter, we can use it as proof to respond to the dispute and have it resolved in your favor.
What if I want to counter the dispute?
As a creator, you have the right to counter the dispute. You just need to send us proof showing the dispute isn't valid within the initial 30 days from the disputed date. After that, we'll take care of the rest. We can't control the bank's decision, but we're here to back you up and help defend your case.
How much is the dispute fee?
The fee for disputes varies by region. It's usually $15 for the United States, £20 for the United Kingdom, €20 for Europe, etc.
Will I get the dispute fee back if I win?
As per Stripe's policy, the dispute fee will not be refunded regardless of whether you win or lose. The best approach is to try to avoid disputes whenever possible.
Is it possible to prevent paying a dispute fee by refunding the charge?
If you refund the full charge before a dispute occurs, the cardholder can no longer dispute it. This means you are safeguarded from future disputes on that amount and any associated fees. However, once a dispute is initiated by the cardholder, it's no longer possible to avoid the fee.
Can I appeal a lost dispute?
Disputes are decided entirely by the entity who issued the cardholder's card. In some cases that's the card network itself (as with American Express) and in some cases that's an issuing bank (as with Mastercard or Visa). The issuer's decision is final and cannot be appealed or challenged.