How can I avoid customer disputes?
Customer disputes are inevitable when operating a business, but in most cases, they occur when there is a lack of transparency about a payment plan and the associated fees. There are a few ways you can ensure clarity and minimise the disputes:
- Inform the customer that Ezypay is your billing provider
- Be upfront about the cost of the goods or services. Remove any hidden costs.
- Be clear about customer-paid Set-Up Fees, Transaction Fees and failed payment fees.
- Ensure the person paying has consented to the payment and you have proof of this consent.
- Keep track of goods or services provided to the customer, the time/date of delivery and the cost
What is a chargeback?
When a customer does not recognise a transaction, they can lodge a dispute with their bank. If this occurs, Ezypay will be notified and asked to provide supporting documents which the bank uses to decide if a credit is due to the customer. This type of credit is called a chargeback.
When a transaction is disputed on a master card or visa card transaction, the card schemes (Master Card and Visa Card) will always favour the customer regardless of documents provided.
This does not mean the customer does not owe you or your business any moneys, it just means that it can’t be deducted from that card any more and prior transactions may be returned to the customer and will be deducted from your upcoming settlement.
You may pursue the customer for these funds via direct communication with the customer, small claims court or debt collection.
How does Ezypay support me when there is a customer dispute?
When Ezypay is contacted by the bank, we will let you know about the dispute and provide guidance and assistance on gathering the required documentation. If you cannot be reached, Ezypay will defend the case on your behalf, utilising any documentation that we have on file.
What supporting documentation is required?
When it comes to handling disputes, the more information that we can provide, the better your case outcome will likely be. Typically, the following documentation will be requested by the bank and can increase the chances in successfully defending a case.
|Evidence Required by Bank
|A screenshot/copy of the truncated card number supplied for their agreement
|Signed Direct Debit Authority form
|A screenshot/copy of `click to accept´ that the cardholder agreed to merchant’s T&Cs
Signed Membership Agreement form
|A screenshot/copy of the cardholder`s access/login
|Screenshot of system indicating customer has accessed the merchant’s facility (in the case of a fitness studio, for instance) or proof customer has attended online training (in the case of online training)
|Documentation showing proof that the service was provided to the cardholder
|Confirmation e-mail or copy of invoice that describes the services provided to customer
|A screenshot/copy of credit/refund if already processed by the merchant
|Copy of refund issued via cash or cheque
How are chargebacks handled by Ezypay?
When a dispute is raised by a customer that made a card payment or bank debit payment, the amount disputed (including any fees) will be deducted from your next available settlement. If the dispute is dropped by the customer or the case dismissed by the bank, Ezypay will return these funds in your next settlement. In this scenario, any adjustments made to your settlement will be visible in the settlement report as a `Chargeback` (for the initial deduction) and `Chargeback Reversal` (for a credit) if the funds are returned to you.
Below is the dispute process flow –