Disputes are a challenging, but inevitable part of eCommerce. It is essential to manage such disputes and respond to them as quickly and accurately as possible – thankfully, we have made it simple.
What is a Dispute?
A dispute arises when a customer initiates a chargeback with their bank or credit card issuer. This occurs when a customer reaches out to their bank directly to lodge a formal dispute claim.
However, a dispute can be overturned by the customer’s bank if they receive enough information showing that the chargeback isn’t justified. When the bank or issuer finds the dispute in the merchant’s favor, the merchant is refunded the disputed amount that had been withdrawn, including the chargeback fee. Hence, the merchant needs to provide relevant evidence to resolve the dispute in his/her favor.
Learn more about the common types of disputes discussed here.
What happens when a cardholder files a dispute on an invoice paid with B2B Payments?
Our Payments team will be notified and will follow through our Dispute Process.
Step 1: Dispute Notification
Our Customer Success or Support team will be notified almost instantly.
Step 2: Working out a response together
A member from our Account Management team will reach out to the primary account user, to let the QuickBooks Commerce merchant understand the situation (i.e. a dispute has been lodged on one of their invoices and on which invoice the chargeback claim was made).
The merchant will be advised to speak directly with the buyer to withdraw the dispute made with the bank and find solutions to handle the situation amicably as possible.
QuickBooks Commerce advises merchants to presume good faith with customers when a dispute has been lodged. Making it clear to buyers that you want to find a solution to their unfortunate experience would help you provide reassurance and gain their trust in solving the problem sooner.
Step 3: Follow-up Email
You will receive an email about the dispute lodged from the QuickBooks Commerce Customer Success team.
Step 4: Submit the Evidence
The QuickBooks Commerce Customer Success team will prepare all documentation supporting your case on behalf of the QuickBooks Commerce merchant to the Credit Cardholder’s bank.
Step 5: Three Possible Outcomes
1: Evidence submitted is deemed sufficient for the bank. The dispute is resolved in the merchant’s favor. 👏🏽
2: Partially resolved. Depending on the evidence, QuickBooks Commerce decided to partially refund back to the merchant. 🤝
3: Evidence submitted was deemed insufficient to the bank. The dispute is resolved in the buyer’s favor. 🙌🏻
What happens if the QuickBooks Commerce merchant does not agree with the dispute/chargeback filed by the customer?
In this case, the merchant will need to work with our Success Team to provide enough information proving that the chargeback is not justified.
The merchant needs to provide relevant evidence to resolve the dispute in his/her favor. The kind of evidence needed depends on the type of dispute. While it is not required that the merchant include every piece of information to have a strong case, providing as much relevant evidence (e.g. email communication with the buyer, shipping confirmation PDF) as possible greatly improves the chances of overturning a dispute.
Our Customer Success team will file the evidence on behalf of the QuickBooks Commerce merchant to the credit cardholder’s bank.
What information do I need to provide to dispute the chargeback claim?
Here is a list of the documentation our Success team will require the merchants’ to submit in order to dispute the chargeback claim from the customer:
- A written letter from your customer outlining that they are withdrawing the dispute from their bank/credit card provider (If possible)
- Customer Signature (Digital signature from the customer on the order)
- Receipt of Purchase (Sales Order confirmation email/Invoice in QuickBooks Commerce)
- Customer Communication (Refers to any communication between the Merchant and Buyer. Eg. email communication with regards to the order placement)
- Shipping Information (Refers to proof of shipping. E.g. Tracking link, Documentation, Proof of Delivery, Shipping Confirmation)
- Any additional information explaining the context of the dispute if relevant
How can I submit dispute information?
Dispute information is submitted by our Success Team before the dispute due date. There is no fixed due date. It depends on the bank and the dispute reason, but it usually varies between 7 -18 days.
How do I withdraw funds in the case of dispute loss?
When the bank or issuer finds the dispute in the customer’s favor, the amount of the dispute is withdrawn from the QuickBooks Commerce Merchant’s Account linked to B2B Payments, including the chargeback fee.
What happens if I accept a dispute from a customer using B2B Payments?
If the QuickBooks Commerce Merchant accepts a dispute or chargeback claim from the customer, the QuickBooks Commerce merchant will need to immediately notify the Success team.
Our Customer Success team will notify the bank or issuer, and the amount of the dispute will be withdrawn from the QuickBooks Commerce Merchant’s Account linked to B2B Payments, including the chargeback fee.
What if I do not accept the outcome of the dispute that is in the buyer’s favor?
If QuickBooks Commerce’s Merchant does not agree with the dispute outcome, our Success team will unfortunately not be able to do anything about it such as appeal/reason. This is because the final decision is of the Bank’s and the entire dispute process will be closed at that point.
Lost Dispute Fees
Depending on the country of business registration, the lost dispute fees vary and range from $0 to $25 in local currency.
For example, businesses in Singapore will incur a $15.00 fee when there is a dispute on one of the merchant’s transactions. If the dispute is resolved in the merchant’s favor – the fee will be refunded.
The moment there is a dispute, we reserve the right to charge merchants the disputed amount until the dispute process is closed. If a dispute is closed in the merchant’s favor, we will pay the disputed amount to the merchant and won’t charge any dispute fee.
It is the merchant's responsibility to take charge of the lost dispute fees and any additional fee(s) that might be incurred during the dispute process.
Withdrawal of Funds in Case of Disputes
In the event, the dispute is resolved in the customer’s favor and the merchant’s B2B Payments account has insufficient funds to be charged for the dispute, B2B Payments reserves the right to withdraw funds from the merchant’s linked bank account, along with the added lost dispute fees (that are different based on the country of business registration).
However, if the dispute is resolved in the merchant’s favor, this is not applicable. You can find out more about B2B Payments Terms of Service here.