Handling Payment Disputes

If you are a sports organization account administrator or a team owner accepting payments, you may occasionally have to deal with payment disputes (aka chargebacks) from your registrants and team members. This can be a frustrating experience but we are here to help! Below we have assembled all the information you need to understand and handle chargebacks appropriately to assist in getting them resolved as quickly and painlessly as possible. 

In this article

What is a payment dispute/chargeback?

Chargebacks are transactions that have been disputed by the payment cardholder. They are a form of customer protection provided by the issuing banks, which allows cardholders to file a complaint regarding fraudulent transactions on their statement. Once the cardholder files a dispute, the issuing bank makes an investigation into the complaint. Cardholders may dispute a transaction when they don't recognize the charge on their statement, the purchase received by the cardholder may not match what was advertised, or the services/items that were purchased were not received by the cardholder, etc. 

Payment Dispute Process

  • TeamSnap is notified of the chargeback by the cardholder’s bank
  • The cardholder's bank automatically reverses the charge, and the funds are debited from your Integrated Payments account to cover the chargeback cost. All charges including processing fees will be deducted from your account. In the case the chargeback is decided in your favor the funds will be resubmitted to your integrated payments account.
  • TeamSnap's Payments team will reach out to the organization owner and CC the organization commissioners. The notification will come from payments@teamsnap.com. 

Dispute Response Options

As the transaction merchant, you can either concede or challenge the dispute:

  • If you concede the chargeback, you are accepting responsibility and the chargeback is resolved in favor of the cardholder, meaning the funds that were debited from your Integrated Payments account are returned to the cardholder and the chargeback is complete
  • If you challenge the chargeback, you must provide supporting evidence proving that the payer's claim is false. 
    • TeamSnap then submits the supporting evidence to the credit card network (e.g. Visa, Mastercard, Discover, etc.) for their decision on the chargeback.
      • If the credit card network rules in the cardholder’s favor, the funds are not returned to your Integrated Payments account
      • If the credit card network rules in your favor, the funds are debited back to your Integrated Payments account
      • In both scenarios, TeamSnap will notify you of the credit card network’s decision

What to Do If You Receive a Chargeback

If you are notified of a chargeback, TeamSnap will let you know the chargeback type. The most common claims/chargeback types are either that the cardholder never authorized this payment, or that the goods/services were not delivered as described. Any contesting evidence must refute the chargeback type. You can then make your decision whether to concede or contest the chargeback.

How to Avoid Payment Disputes

You'll want to make sure that your fees and any additional items your participants are going to be paying for have clear descriptions and pricing, as well as any additional details that will ensure the participant has a clear expectation for the product or service that they will be receiving. We also recommend creating a short and simple refund policy that is clearly displayed during the registration process. It is also highly recommended to make your contact information highly visible so that participants with any issue can reach out directly before submitting a chargeback. You'll want to make sure that you are in regular communication with your participants to keep them updated on season start dates and changes and you'll want to make sure that you are responsive to inquiries from your participants. 

You can include this information in your registration instructions, on your organization's website, or on a required waiver or document as part of registration. You also want to ensure you have a way to show the participant attended/participated/received service/or that the service was available to them.

Common Questions

How long does it usually take to resolve a contested chargeback?

Card networks receive hundreds of thousands of chargebacks every year. Due to timelines for card networks and issuing banks, the chargeback can take up to 45 days to be resolved.

I already issued a refund for this transaction, why did I still get a chargeback?

You can receive a chargeback up to 120 days after the original transaction. Cardholders tend to reach out to both the merchant and their bank to receive the disputed funds. Sometimes the bank still issues a chargeback - even   after you provide a refund - since the bank is not aware of this refund. If this happens, you may want to challenge the chargeback and TeamSnap can assist with providing evidence of the refund being issued.

Once a chargeback has been resolved in my favor, can it be resubmitted by the cardholder?

If you win the chargeback, the cardholder is still able to chargeback the transaction once again. This occurrence takes various names depending on the card network. Visa refers to it as pre-arbitration, while MasterCard calls it a 2nd chargeback. The entire chargeback process begins again with the filing of a second chargeback. Once the process finishes, the issuing bank determines whether to rule in favor for you or the customer once again, and it won't necessarily come to the same determination as the first decision.