What is a chargeback?
A chargeback occurs when a consumer disputes a credit card transaction with their bank or credit card provider.
The most common claims for chargebacks are:
- An incorrect amount has been charged to the cardholder.
- The item paid for has not been received.
- The items or services delivered do not match the description.
- The chargeback system is run by the card brands (Visa, MasterCard, Discover, American Express, etc.).
What happens when I receive a chargeback?
The card issuer typically refunds the amount to the cardholder while they investigate whether the dispute is legitimate and, if so, who is responsible for paying back the money. The money is then immediately debited from the merchant’s account and held in limbo until the dispute is finalized. If you, the merchant, are not found responsible, the money will be credited back to your account temporarily and the bank or cardholder will have a certain amount of time to respond; if you are found responsible, you lose the money permanently unless you go through the small claims process to dispute the matter further. Plus, you will be charged a nominal fee by your processor for the dispute.
What do I do when I receive a chargeback?
If your customer issues a chargeback, Gravity Payments will notify you by email that an investigation is being conducted. Beginning from the time the dispute is initiated, you have 10 business days to respond before you automatically lose the dispute. Notification times vary, and can affect your response time.
If you receive a dispute notification in the mail, please respond immediately. If the response date has passed, you may be left with little recourse.
If you believe your business will be liable for a high number of chargebacks, please reach out to our support team via Dispute Manager, our chargeback-management tool.
What is Dispute Manager?
Dispute Manager is an online portal that allows you to access and respond to all retrieval and chargeback notices that have been issued to your account. With Dispute Manager, you can sign up to receive email notifications every time your business is issued a dispute.
How do I enroll in Dispute Manager?
Please review the following before attempting to enroll with Dispute Manager:
- If your merchant ID number starts with the number ‘3’, please reach out to our Support Team for alternative sign up instructions.
- If your business has more than one account or multiple locations, please reach out to our Support Team for additional help.
- If you only have one business location and your merchant ID number starts with the number ‘5’, please continue with the steps below.
Your merchant ID number is required to complete your Dispute Manager enrollment, so please make sure you have it available before clicking on the ‘Enroll’ button. Your merchant ID number can be found on your monthly Gravity Payments statement or on a chargeback notification.
Once you have located your merchant ID, click on the ‘Enroll’ button. Once you have clicked ‘Enroll’, you will be navigated to a new page, which will guide you through the enrollment process. Click ‘Begin Enrollment’ under Step 1.
Now, follow the process below to complete your enrollment:
- After clicking ‘Begin Enrollment’, you will now be prompted to complete a form with all of your account information.
- Make sure to complete all fields, including your tax ID, then click ‘Next’. Make sure to take note of the ‘Secret Question’ and your answer.
- You should receive a confirmation email within the next 24-48 hours, which will include your User ID and prompt you to complete your enrollment. Along with the User ID that is provided within this email, you will be prompted to input the answer to your ‘Secret Question’ in order to set a permanent login password.
- Once you have created your login credentials, you can now log into Dispute Manager and begin reviewing your retrievals or chargebacks.
- Make sure your pop-up blocker is disabled, as the Dispute Manager portal will pop-up in a new window.