LeagueApps Gateway Disputes

IMPORTANT COVID-19 UPDATE

We are closely monitoring COVID-19 dispute response guidance from credit card providers. If a dispute is COVID-19 related, first review these guidelines before submitting evidence. 

---

A dispute occurs when one of your customer’s challenges a payment they made to you with their card issuer. While LeagueApps is the payment gateway of record, we do not play a role in dispute decisions. Your customer's credit card company will review each claim and unilaterally make the decision to refund or uphold the payment.

Evidence for all disputes must be submitted within 5 days of the dispute date.

When a customer files a payment dispute, the card company initiates a chargeback (or a refund) until the dispute is resolved. If the dispute is accepted or challenged and deemed lost then the refund to your customer is finalized; if the dispute is canceled by the customer or challenged and deemed won then your organization is credited back the disputed amount. Failing to submit evidence results in an automatic refund to the customer.

RESOLVE A DISPUTE

*After you submit evidence, please give the LeagueApps system 24-48 hours for the dispute's Status to update from "Needs Response."


COVID-19 Evidence Guidelines

If you have received a dispute that relates to goods or services that you were unable to provide to your customer due to a government order or prohibition and you would like to contest the dispute, we recommend that you submit the following evidence where possible as additional information (in a single file), along with the standard evidence.

1. A statement that you were unable to deliver the relevant goods or services because of a government order or prohibition.

2. A copy or description of the relevant government order or prohibition.

3. If applicable, a copy or description of any relevant government regulations that permit you to offer your customers a voucher, credit or substitute goods or services instead of a refund.

4. If applicable, a statement that you provided the customer with a voucher, credit or a substitute good or service in accordance with your terms and conditions or applicable government regulations.

5. If applicable, details of the voucher, credit, or substitute good such as an identifier, dates, and a description.

6. If applicable, a statement that you are not required to provide a refund to the customer in accordance with your terms and conditions or applicable government regulations.

7. If applicable, a copy of the relevant sections of your terms and conditions.

8. If applicable, a copy of your checkout flow showing how customers accept your terms and conditions.

Click here for more information. 


Dispute Statuses

Each dispute will have a status based on what stage of the process it's in.

  • Needs Response or Waring Needs Response - Challenge or accept the dispute. After submitting evidence or accepting a dispute, this status in LeagueApps can take up to 48 business hours to update.
  • Under Review or Warning Under Review - The dispute is under review by the customer’s card issuer. The review process varies per bank and can take up to 12 weeks. You will be automatically notified once a decision is made.
  • Won - The cardholder’s bank ruled against the customer’s claim and returned the disputed payment to your account.
  • Lost - The cardholder’s bank ruled in favor of the customer’s claim, and the disputed payment is refunded. This can happen because your organization accepted the dispute, no evidence was submitted to challenge the dispute, or insufficient evidence was submitted to overturn the dispute.
  • Warning Closed: the case has timed out and did not escalate into a full chargeback; similar to a "won" status.

 

Best Practices for Refund Policies

Make your organization's policies specific to your business and not generic. Here are some best practices that can help your organization have stronger evidence against disputes.

  • When there is a reasonable reason that a refund cannot be processed, write it out as explicitly as possible in your refund policy and in dispute evidence submissions.
    • For example: “{Business Name} cannot offer refunds for participating in a sports program such as a camp or team because the money collected in registration fees goes directly towards paying coaches for their time, field space, insurance, equipment, and other fixed costs. All of which are expenses that cannot be recouped after a registrant has participated in a program or if a registrant cancels within a week of the program start date."
  • Include a link at the end of your policies stating how a customer can contact your customer service with questions. 
  • Have your policies show that the business is open to customer concerns (this is a good way to catch the bank’s attention and show that you care about customer concerns and refunds.)
  • Add multiple waivers to your LeagueApps account, one for every policy you want to defend in the case of a dispute. For example, you can add a specific waiver for your organization's "Refund Policy" and we also suggest having your refund policy posted on your website.
  • When submitting evidence against a dispute it is helpful to:
    • Upload a screenshot that shows the customer must explicitly agree to the policy by accepting the waiver on LeagueApps before progressing to submit payment.
    • Upload the signed waiver from LeagueApps. 
    • Provide text and a screenshot of your organization's policies and include information about where and when the customer is shown these policies. 

Dispute Categories

When a payment is disputed by a cardholder, their bank assigns it a category. Below are descriptions of each dispute category along with required information to overturn the dispute claim.

Credit not processed

The customer claims that the purchased product was returned or the transaction was otherwise canceled, but you have not yet provided a refund or credit.

Required to overturn dispute: Demonstrate that you have refunded your customer through other means or that your customer is not entitled to a refund.

How to respond:

  1. Get in touch with the customer. If you understand what their complaint is, there is a chance for you to explain the misunderstanding or to make it right. If you’re able to resolve the issue with your customer, you can ask that they withdraw the dispute. If they agree to do this, you should still submit evidence for the dispute and include a statement that the cardholder said they will withdraw the dispute including any email correspondence.
  2. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program (attendance log, check-in sheet, emails, etc.)
    2. Include screenshots of your refund policy, a signed waiver that includes your refund policy, and a screenshot of where the customer sees and agrees to the refund policy. These documents help demonstrate that the customer was aware of your refund policy before submitting payment. 
  3. If you believe that your customer was entitled a refund that you did not provide, you can Accept the dispute. You cannot issue a refund via LeagueApps while a payment is being disputed. 

 

Duplicate

The customer claims they were charged multiple times for the same product or service.

Required to overturn dispute: Demonstrate that each payment was for a separate product or service.

How to respond:

  1. Determine if your customer was incorrectly charged multiple times. If they were, you should accept the dispute. You cannot issue a refund via LeagueApps while a payment is being disputed.
  2. If there have been two or more separate payments, you should get in touch with your customer. If you understand what their complaint is, there is a chance for you to explain the misunderstanding or to make it right. If you’re able to resolve the issue with your customer, you can ask that they withdraw the dispute. If they agree to do this, you should still submit evidence for the dispute and include a statement that the cardholder said they would withdraw the dispute including any email correspondence.
  3. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit.
    1. Collect any and all information documenting that each payment was made separately, such as copies of receipts. If the receipts don’t include the items purchased, be sure to include an itemized list. Each receipt should clearly indicate that the payments are for separate purchases of items or services.
    2. If you’ve been able to get in touch with the customer you should be sure to address any concerns they had in your evidence.

 

Fraudulent

This is the most common reason for a dispute and happens when a cardholder claims that they didn’t authorize the payment. This can happen if the card was lost or stolen and used to make a fraudulent purchase. It can also happen if the cardholder doesn’t recognize the payment as it appears on the billing statement from their bank.

Required to overturn dispute: Get the cardholder to withdraw the dispute by helping them identify the payment or prove to the bank that their cardholder did authorize it.

How to respond:

  1. First, try to get in touch with the cardholder. Sometimes people forget about payments they make. It’s also possible that there is an additional cardholder on the account or someone they authorized to use the card (e.g., a spouse) made the payment and were unaware of it at the time. If this is the case, ask them to let their bank know that they want to withdraw the dispute. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favor. If they agree to do this, you must still submit evidence for the dispute and include a statement that the cardholder agreed to withdraw the dispute including any email correspondence.
  2. If you believe the payment was actually made using a stolen credit card, you will need to accept the dispute. The credit card networks place liability for accepting fraudulent payments with you, the business.
  3. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program (attendance log, check-in sheet, emails, etc.)
    2. Include screenshots of your refund policy, a signed waiver that includes your refund policy, and a screenshot of where the customer sees and agrees to the refund policy. These documents help demonstrate that the customer was aware of your refund policy before submitting payment. 

 

General

This is an uncategorized dispute, so you should contact the customer for additional details to find out why the payment was disputed.

If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 

  1. ​Include any proof that the customer participated in the sports program (attendance log, check-in sheet, emails, etc.)
  2. Include screenshots of your refund policy, a signed waiver that includes your refund policy, and a screenshot of where the customer sees and agrees to the refund policy. These documents help demonstrate that the customer was aware of your refund policy before submitting payment. 

 

Product not received

The customer claims they did not receive the products or services purchased.

Required to overturn dispute: Prove that the customer received a physical product or offline service, or made use of a digital product or online service. This must have occurred prior to the date the dispute was initiated.

How to respond:

  1. First, get in touch with your customer. Understanding why they filed the dispute will be important for helping make sure your customer gets the product and will give you critical information to prevent this from happening to others. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favor. If they agree to do this, you must still submit evidence for the dispute and include a statement that the cardholder agreed to withdraw the dispute including any email correspondence.
  2. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program (attendance log, check-in sheet, emails, etc.)
    2. Include screenshots of your refund policy, a signed waiver that includes your refund policy, and a screenshot of where the customer sees and agrees to the refund policy. These documents help demonstrate that the customer was aware of your refund policy before submitting payment. 

 

Product unacceptable

The product or service was received but was defective, damaged, or not as described.

Required to overturn dispute: Demonstrate that the product or service was delivered as described at the time of purchase.

How to respond:

  1. First, get in touch with your customer. If you understand why they’re dissatisfied, there is a chance for you to explain the misunderstanding or to make it right. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favor. If they agree to do this, you must still submit evidence for the dispute and include a statement that the cardholder agreed to withdraw the dispute including any email correspondence.
  2. If your customer made no attempt to return the product or cancel the service, or if you provided a replacement product or service, make sure to include proof of this in your evidence submission.
  3. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program or received the product (attendance log, check-in sheet, emails, etc.)
    2. Include evidence that shows the product/program description clearly describes the product/service that the customer received. Labeling programs or products in a clean and thorough way helps with this. 
    3. Include screenshots of your refund policy, a signed waiver that includes your refund policy, and a screenshot of where the customer sees and agrees to the refund policy. These documents help demonstrate that the customer was aware of your refund policy before submitting payment. 

 

Subscription canceled

The customer claims that you continued to charge them after a subscription was canceled.

Required to overturn dispute: Prove that the subscription was still active and that the customer was aware of, and did not follow, your cancellation procedure.

How to respond:

  1. First, get in touch with your customer. If you understand what they believe happened, there is a chance for you to explain the misunderstanding or to make it right. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favor. If they agree to do this, you must still submit evidence for the dispute and include a statement that the cardholder agreed to withdraw the dispute including any email correspondence.
  2. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program or received the product (attendance log, check-in sheet, emails, etc.)
    2. Include screenshots of your refund/cancellation policy, a signed waiver that includes your policies, and a screenshot of where the customer sees and agrees to the policies. These documents help demonstrate that the customer was aware of your policies before submitting payment. 

 

Unrecognized

The customer doesn’t recognize the payment appearing on their card statement.

Required to overturn dispute: As with fraudulent disputes, get your customer to withdraw the dispute by helping them identify the payment.

How to respond:

  1. First, try to get in touch with the cardholder. Sometimes people forget about payments they make. It’s also possible that there is an additional cardholder on the account or someone they authorized to use the card (e.g., a spouse) made the payment and were unaware of it at the time. If this is the case, ask them to let their bank know that they want to withdraw the dispute. Having the cardholder withdraw the dispute is by far the best way for you to make sure a dispute is resolved in your favor. If they agree to do this, you must still submit evidence for the dispute and include a statement that the cardholder agreed to withdraw the dispute including any email correspondence.
  2. If the customer is not reachable or refuses to withdraw the dispute, you will need to submit evidence that proves the customer is not entitled to a refund or credit. 
    1. ​Include any proof that the customer participated in the sports program or received the product (attendance log, check-in sheet, emails, etc.)
    2. Include screenshots of your refund/cancellation policy, a signed waiver that includes your policies, and a screenshot of where the customer sees and agrees to the policies. These documents help demonstrate that the customer was aware of your policies before submitting payment. 

 

VIDEO: Disputes Deep Dive

 

FAQs

(1) Is there a timeframe that a customer is able to dispute a transaction?

All banks vary in the amount of time they allow a customer to dispute a charge. Typically, after 120 days, the dispute possibility is low. But, because of the thousands of banks throughout the world, Stripe does not have a time frame of when a customer can dispute a charge.

 

(2) Can I refund a customer while their Invoice is Disputed?

When a dispute is filed on a payment, that puts the LeagueApps Invoice into a "Refund" state. While the Invoice is in this state and the dispute is being reviewed by the banks, no actions can be taken on the invoice (ex: delete future installments or refund installments). 

Once the dispute is settled (marked Won or Lost) then the invoice is taken out of the Refund state and installments can be edited/removed and charged going forward. 

Was this article helpful?
0 out of 0 found this helpful