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Handling Payment Disputes with WePay

If you are a team owner accepting Team Payments powered by WePay, you may occasionally have to deal with payment disputes (aka chargebacks) from your 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. 

What is a 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. 

What happens when a chargeback is submitted?
  • WePay is notified about the chargeback by the cardholder’s bank
  • WePay automatically debits the funds from your WePay account to cover the chargeback cost, and they notify you about the chargeback. WePay will then provide you with information and guidance to keep you informed on the status of your chargeback via email.
  • There may be a $15 non-refundable fee for the chargeback that is assessed when the chargeback is originally filed; this will be withdrawn from your merchant account, or your bank account if the funds are not available in your merchant account.
What are my options when dealing with a chargeback? 

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

  • 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 WePay account are returned to the cardholder and the chargeback is complete
  • If you challenge the chargeback, you must provide supporting evidence
    • WePay 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 WePay account
      • If the credit card network rules in your favor, the funds are debited back to your WePay account
      • In both scenarios, WePay will notify you of the credit card network’s decision
What should I do if I receive a chargeback?

If you are notified of a chargeback you should review the information carefully, paying particular attention to the chargeback type. You can then make your decision whether to concede or contest the chargeback.


  1. Click the Concede button in the chargeback email notification you received from WePay, OR
  2. Log into your WePay merchant portal
    1. Click the Reporting tab
    2. Click the Chargebacks tab
    3. Click Concede
    4. Click Yes, I want to concede to confirm


  1. Gather the appropriate supporting evidence documentation required for the chargeback type
  2. Click the Challenge button in the chargeback email notification you received from WePay, OR
  3. Log into your WePay merchant portal
    1. Click the Reporting tab
    2. Click the Chargebacks tab
    3. Click Challenge
    4. Select the payment type, enter the payment date, upload your supporting documentation, and enter any additional details as needed
    5. Click Submit
How long does it usually take to resolve a contested chargeback?

Due to timelines for card networks and issuing banks, the chargeback can take up to 45 days to be resolved.

What can I do to avoid chargebacks?

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. 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 can include this information in your Invoice description or on a team website. You can let your participants know that the charge should be appearing on their statement as the account name that you use to register your WePay merchant account followed by WePay. 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.

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, we encourage you to challenge the chargeback and provide evidence about the refund being issued.

Do I always need to supply evidence to contest a chargeback?

For two chargeback types - recognition chargebacks and refunds, WePay will contest automatically and additional documentation is not needed. If either of these scenarios occurs, you will be notified via e-mail, but you will not need to take any action.

What are the chargeback types and required documentation evidence for each?

Please check the documentation needs listed in WePay's help center here: Documentation Needed Based on Chargeback Type

I want to make sure I send the correct documentation, do you have any examples?

Glad you asked! WePay has some great sample documentation you can view: Sample Documentation

How many days do I have to submit my evidence?

From the day that you receive your first chargeback notification, you will have  5 business days to submit your evidence. This window ensures that WePay has sufficient time to represent the evidence to the cardholder’s bank and/or card network within their allocated timeframes. Late submissions of evidence will be evaluated on a case-by-case basis and submitted accordingly.

What file formats do I need to use for my document evidence?

Currently, WePay accepts JPG, JPEG, TIF, TIFF, PNG, and PDF files. Please keep in mind that there are size limitations on files, so you may want to submit screenshots if necessary. For instance, if you would like to submit your refund policy but the file size is too large, you can take a screenshot of the page with the cardholder’s signature.

I have submitted all my documents, when will I know the status of the chargeback? And where can I see my status?

Your merchant portal will provide you with the latest information on your chargeback status. You will receive e-mail notifications regarding your chargeback as well. Once you receive notification about a chargeback, it will take approximately 20 days for AMEX to resolve the chargeback, and 45 days for all other card networks to resolve.

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. 

There’s still one more opportunity for the issuing bank to dispute the transaction if the issuing bank sides with the merchant in the event of pre-arbitration/second chargeback. The issuing bank can push the dispute to arbitration, automatically charging a $250 fee to the merchant. If the merchant wins arbitration, the issuing bank returns the $250 fee. If the merchant loses, they’re assessed an additional $250 fee.

If you'd like any additional information feel free to check out WePay's Help Center on Chargebacks/Disputes.

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