How Union Handles Disputes (Chargebacks)
A dispute (also known as a chargeback) occurs when a cardholder questions a payment made to your business through their card issuer. To initiate a chargeback, the issuer (customer) creates a formal dispute on the card network which will immediately reverse the payment, pulling the money for the payment - as well as one or more network dispute fees-from Stripe. After, Stripe debits your balance for the payment amount and dispute fee. Please visit Understanding Disputes for more information.
When Union see's a dispute/chargeback has been made by a customer, we will follow the standard process you see below. Our team may reach out to you with further requests on how you would like us to manage the dispute for you in cases where more additional information is required. Here are some instances:
- High disputed amount
- Unusual amount of disputes made by a single customer
- Disputes with fraud reasons
- Disputes with double charge reasons that Union detects could be true
Disputes Debits
When a dispute is received, Stripe/Union will debit your account until the banks results are listed (disputed amount + processing fee). There becomes an opportunity to submit evidence in order to prove the charge was legitimate and potentially overturn the dispute. The following options are available:
- Submit evidence
- Immediately "Accept" the dispute
To help ensure there are no double refunds until the dispute outcome has been listed, Union will block orders from being refunded that a customer has filed a chargeback on.
In the case of a subscription, Union will cancel the customer's subscription (when the dispute is received) to ensure there are no future charges on the customer's account. If the customer "accidentally" filed a dispute, they will be prompted to purchase a new pass to complete their registration.
Once the issuers bank has finalized the outcome, the following actions will occur:
- If the issuers bank decided to rule in favor or the business, the dispute will be considered "won" and you (the business) will be returned the dispute amount minus the $15 processing fee.
- At this time, the order will become available to refund in Union if you wish to refund your customer directly.
- If the dispute falls in the customer's favor, nothing will happen (the funds have already been deducted).
What Does Union Say?
Union reviews each dispute and combs through as may details as we can depending on the reason that was defined by the customer. Below, you'll see a structure of what a dispute looks like when submitting evidence is taken.
Why should you win the dispute?
While each reason will hold different options, here are some examples:
| Options to Choose | When Union will Use | Suggestive Workflows/Evidence or Addition text to Add |
|---|---|---|
| Cardholder withdrew the dispute | Verification the cardholder dropped the dispute | You contacted the client, have written verification customer dropped the dispute. |
| The refund or cancellation request was made after the date allowed by your terms | Clearly stated cancellation and refund terms in Union or on business website. | Can save a PDF or provide a screenshot of all the listed places the terms have been stated. |
| The cardholder received the product or service | The customer was actively accessing content (registering and attending classes or replays) during the billing cycle for the dispute filed. | Customer’s subscription overview shows activity during for this billing period. |
| Other (Required to add Text) | No communication or limited details | The cardholder did not cancel their monthly auto-renewing subscription before the next billing cycle or contact the support channels (available 7 days a week). |
Submitting Evidence
Union takes immediate action by reviewing the filed dispute and begin collecting evidence to submit to the issuers bank. Please see below in ways you can support by lessening the turn around time.
Depending on the reason for the dispute, Union is typically looking for the following details to submit.
- Clear, visible, easy to read cancellation/refund policy (i.e in your waiver, pass description, automated emails).
- Written communication that the customer had withdrawn the dispute with their bank.
- Communication with the customer (either with your or Union support)
- Terms & Disclosures
- Receipts
- Signature (i.e. if your policies are in the waiver and they signed the waiver)
- Credit or Voucher offered?
- "Other" examples: Proof the customer used the subscription during the time when it was meant to be canceled, additional customer communication, proof of other purchases made, and more.