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  3. Understanding Card Disputes Resolution For Troly Payments

Understanding Card Disputes Resolution For Troly Payments

Updated on July 30, 2020

If you're using the Standard or Advanced Payments Add-On, Troly helps you managing and handling any credit card disputes (or chargeback). We will help to:

  • know each time the bank reports a credit card dispute
  • send you the relevant information
  • defend the case with the bank

If you use any other payment gateway (Stripe, eWay, Braintree, etc.), please refer to the relevant documentation on how to defend your transactions on your provider website.

Using Troly to handle chargebacks and disputes

What is a chargeback, disputed transaction or credit card dispute?

While different card issuers may call this differently, a chargeback is when the financial institution that issued a credit card informs a merchant that the cardholder is disputing an entry on their statement and has requested the transaction be reversed.

When does it happen?

This can happen at any time, usually when a customer is reviewing their bank statement. Typically, customers have a 90 or 120 days period after their card has been charged to raise a dispute.

Why is your customer confused?

In most cases we have experienced, customers have forgotten about your club, ignored your email message or have forgotten you have shipped to them.

In rare cases, it is possible also that your case was never delivered and the carrier has lost it, or left a card and are yet to return the parcel to you.

Most commonly the customer card statement is confusing and customers simply need to be explained why their card was charged.

When using the Standard Payments Add-on for taking online credit card payments, the customer’s bank may choose to use your legal name and-or location (e.g. ACME Wines Co, Pheasants Nest), or may instead use the Troly merchant name Your Wine Club, (or Your Wine Club, Darlinghurst, or Your Wine Club, Australia)

This may create concerns with customers as they will often not associate their purchase from you with 'Your Wine Club.'  We have taken measures to minimize this, and should these not be sufficient, we recommend using the Advanced Payments add-on as it will show your legal name in most cases.

Where is the information recorded in Troly?

If a customer happens to dispute a charge, Troly will record a new entry in your customer's activity feed (under their customer profile page). This will be recorded as soon as the bank registers the dispute:

If the customer doesn't withdraw their claim, in which case the funds will be sent back to your customer, another entry will also be recorded in their Activity Feed.

The dispute resolution process

Part 1: Request for information

When a bank notifies Troly that a dispute was raised, we will do the heavy lifting with the bank, and request that you get in touch with your customer to clarify the situation.

Within 48 hours of receiving a notice from our banking partner, we will collect and prepare the following documents on your behalf:

  • Sales Invoice: this is the most important document to show proof of purchase. If you have used a Guest Customer account, this may not be as effective in defending the transaction
  • Emails: we will send screenshots of the relevant emails for the purchase made
  • Customer order history: screenshots of the customer’s Activity Stream will be sent showing the history of order creation, payment, pickup/dispatch, and completion.
  • Parcel tracking information: a screenshot of the carrier's site displaying the parcel tracking number and delivery notification.

As soon as these documents have been collected and returned, we will respond to the bank, contact you via email and ask you to get in contact with the customer in question. The goal is to have the customer contact their financial institution and stop the dispute.

Please be informed that once we've sent all documentation, proof of delivery, invoice and any other documents to the bank, your customer's bank is the only one making a decision along with your customer's decision.

It may happen that your customer comes back to you with some more information or with a confirmation saying they will drop the claim. Note that we won't be able to reach out to your customer's bank directly or help further with the claim.

Also, bear in mind that banks don't update us once a claim is withdrawn by the cardholder. Therefore, Troly will notify you once more only if the claim is lost.

You may refund that order

If you agree with your customer to void the sale, you should only refund the customer once they have confirmed having contacted their bank and dropped their claim. Without that, both you and the bank will issue a refund, and an additional dispute fee is chargeable.

Both the dispute fee and bank refund may be debited out of your account, on top of your manual refund.

Part 2: Dispute Resolution

Within 5 business days, the bank will contact the card-issuing company to provide the documents we have provided as evidence of a genuine sale.

Your customer is normally provided a 45-day window to respond, drop or continue the dispute. You will not be notified when the bank contacts your customer to advise the charge is being defended.

Part 3A: Dispute Dropped 👍

If your customer chooses to accept the documents provided and drop the disputed transaction, no notification is provided by the bank or Troly.

Part 3B: Dispute Lost  👎

If your customer continues to dispute the charge, there is no further recourse on our part and the bank takes the decision of returning the funds to the customer.

In that case, you will be notified of this within 5 business days. As a result:

  1. The amount in question will be applied as an adjustment on your account, with an additional $40 chargeback fee charged by the bank.
  2. This accounting adjustment will go against your running balance and be adjusted or appear and be payable on your next Troly invoice, as Monies owed to Troly.

DON'T REFUND THAT ORDER!

Once the bank has refunded the transaction you should not refund the order in question. Doing so means your customer will have been refunded twice.

Both the dispute fee and bank refund will be debited out of your account, on top of your manual refund.

Helpful?

Learn more about single and bulk payments with this article. Want to know more about online payment gateways? Click here!

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