Review of the Chargeback Process

• When a chargeback is OPENED, it means that a customer from your organization has disputed their charge with their credit card company. 
  • • An email will be sent to the email(s) listed in Chargeback Copy To on the Programs > Configurations > General page. 
    • The money is temporarily removed from the organization's Payrix account.
    • The Payrix admin is responsible for going in and responding to the chargeback in Payrix. They can either "accept liability" or "submit documentation". That information will then be reviewed by the card brands and a decision will be made. 
• When a chargeback is CLOSED, it means that the organization has responded to the claim and it is being reviewed by the card brands.
• If a chargeback is WON, that means the chargeback was decided in the organization's favor.
  • • The money is returned to the organization's Payrix account and should be included on the next settlement distribution.
    • An email is sent to the administrator.
• If a chargeback is LOST, that means the chargeback was decided in the card holder's favor.
  • • The money is not returned to the organization's Payrix account.
    • A Miscellaneous Debit is added to the customer’s account in TeamSideline.
    • An email is sent to the administrator.

How to Respond to Chargebacks

Login to payments.teamsideline.com

• Option 1: Accept liability 
• Option 2: Submit Documentation / Evidence for Payrix to review.

Tips for Responding to Chargebacks

The chargeback process tends to favor the cardholder for several reasons rooted in consumer protection. It is important to note that TeamSideline has no control over the Chargeback process or decisions rendered. Review Payrix Tips for Disputing Chargebacks

• Understand the Chargeback Reason Code
  • • Each chargeback comes with a reason code that explains why the customer disputed the charge. Understanding that code is crucial as it can guide your response strategy.
• Gather Relevant Documentation
  • • Provide a copy of the Order Confirmation. This can be found by going to the customer account and clicking on the spy glass next to their order and saving as a PDF. 
    • Provide a copy of the Account Statement. This can be found by going to the customer account and clicking on the blue Account Statement button. 
    • Provide a copy of your Refund Policy or Cancellation Policy. This can be found in the bottom right corner of your website OR you can provide a copy of your individual programs T&Cs.
    • Provide a copy of any email communication you have with your customer. This can be found directly in your email or you can look up communication logs on your website.
• Write a Clear & Concise Response
  • • Your response should be professional and to the point.
    • Provide a brief summary of the transaction and the dispute.
    • Address the reason code directly and point to which evidence refutes that claim.
    • Include a list of attached documents and explain their relevance.
• Meet Deadline
  • • Chargebacks have strict response deadlines. Make sure to submit your response well before the deadline to avoid automatic loss of the dispute. 

Chargeback FAQS

We have compiled some of the most common questions regarding chargebacks here.

Q: If the chargeback is legitimate and the customer shouldn't have been charged or should have been given a refund and wasn't, should I just issue the refund now?

A: NO! Once a chargeback is opened, the money is removed from your account and returned to the card holder. They already have the funds. If the chargeback is legitimate, then just respond to the chargeback and "Accept Liability". 

Q: Does it cost our organization money for a chargeback?

A: Yes, it is a $20 fee that is charged from Payrix to your account when you have a chargeback. If your organization wants to charge that to the customer, you would need to add a $20 misc debit to their account and instruct them to login to their account and pay their balance.