Customer Dispute Frequently Asked Questions
What is a credit card chargeback/dispute, and what are the steps involved?
- Instance when a customer sees a charge on their credit card statement and takes steps to reverse the charges
- Customer contacts their bank to reverse the charge
- The customer’s bank charges the vendor (in this instance, Teamworks) an equivalent amount to the dispute in question (the vendor is charged the amount of the transaction in question, and the customer receives a credit back to their account)
- Chargebacks are most commonly initiated for the following reasons:
- The customer either does not recognize or does not remember the reason for the charge on their account
- The customer ordered goods and/or services and does not receive them
- The customer is not happy with the product or service and is unable to resolve the issue with the business directly
- The charge is legitimately fraudulent
- The customer was charged more than once for the same purchase
How does this affect Teamworks/my camp business?
- When a chargeback is initiated from a camp customer, funds are automatically taken from Teamworks and returned to the customer
- Teamworks is alerted by our payment processor that a dispute/chargeback has occurred
- If Teamworks is unable to win or come to a resolution on a dispute, we will pass the charge back to the camp by either charging your credit card on file, or sending an invoice to you
What else should I know about chargebacks/disputes?
- Each time a chargeback/dispute is initiated, there is a $15 processing fee on-top of the disputed amount that is charged to Teamworks by the payment processor. Currently, Teamworks does not pass the $15 charge associated with disputes to the camp customers
- If Teamworks is successful in winning a dispute, Teamworks will receive the money back. However, customers are able to re-dispute. For this reason, it’s important for a representative from the camp to reach out to customers after the first dispute to determine the reasoning for the dispute, and to encourage them not to re-dispute
- Having a clear cancellation policy on your camp website will greatly increase your chance of winning a dispute. Reaching out to a customer who has disputed a charge and explaining to them what the charge was for, and having them acknowledge in writing that they understand the charge will further increase the likelihood of winning a dispute
Why would Teamworks charge my camp business for a chargeback/dispute?
- Ultimately the camp is your business, and aside from the processing fee charged and retained by Teamworks, the revenue generated for these camps flows through Teamworks and back to the camp business. Teamworks is acting as the intermediary for payment processing – if camp payments were not flowing through Teamworks, the camp would be the entity being charged and managing each dispute. Teamworks only seeks to recoup the amount that was taken from our business.
- Teamworks has the ability to create payment links that your staff can send to the family to try and recoup funds. This option is helpful if Teamworks has to charge your camp business for a dispute.