Chargebacks with CashFlow

Summary:

A chargeback is a customer-initiated refund for a contested credit card transaction. The customer’s issuing bank charges you the contested amount, and you have the opportunity to submit a “representment” in response to contest the chargeback. OpenSolar will inform you of any chargebacks and support you throughout the process. 

This article provides an overview of the chargeback process, as well as recommendations to minimize chargebacks from your customers. 

Table of Contents:

What to expect from a CashFlow chargeback

Notification

Initial charge

Representment

Resolution

Fees

Best Practices to Avoid Chargebacks

What to expect from a CashFlow chargeback:

Notification:

If a customer submits a chargeback, OpenSolar will be notified and will email you with the chargeback information. You can then choose to accept or fight the chargeback. 

If you agree that the chargeback is valid or you do not believe you have the evidence to disprove the charge, you do not need to take any action. 

If you disagree with the customer’s claims and have evidence to back this up, you can choose to fight the chargeback by submitting a “representment” within 7 days. OpenSolar will facilitate this process for you.

Initial charge:

When a chargeback is initiated against you, the value of the contested transaction will automatically be charged to your CashFlow balance, along with a chargeback fee. If the value of the charge is higher than your current balance, the balance will reflect the negative difference. 

Important note: If you are notified of a chargeback, do not issue a refund to your customer for the contested payment - whether or not you plan to fight the chargeback. Money has already been charged to your CashFlow balance for the purpose of refunding the customer, so an offline refund at this time would be duplicative.

Representment:

If you choose to fight the chargeback, OpenSolar will work with you to prepare a response with evidence to back your claim. Beyond the evidence available in OpenSolar (e.g., invoices and system emails), we may request content from you, such as screenshots of customer communication outside of OpenSolar.  

Resolution:

After you represent a chargeback, the next step is for the issuing bank to review any evidence that you have submitted and deliver a verdict. Once the verdict is delivered, OpenSolar will update your account and inform you of the verdict. 

If the issuing bank agrees with your assertion that the chargeback is invalid, OpenSolar will return the disputed amount to your account. You will receive the full chargeback amount, but the fees will not be returned.

If the issuing bank decides your evidence was insufficient, or you chose not to fight the chargeback, the funds will remain with the cardholder.

Note: It can take up to 120 days for the issuer to deliver a final verdict on your representment.

Fees:

When a customer submits a chargeback, you will be charged a fee in addition to the value of the contested transaction. If you choose to fight the chargeback, you will be charged an additional representment fee.

These fees are documented within the "(ii) Chargeback Management Options" section of the Pricing Agreement on your CashFlow Documents page.

These fees are non-refundable and will not be returned, regardless of the outcome of your representment.  

Best Practices to Avoid Chargebacks:

The best way to handle chargebacks is to avoid them in the first place. OpenSolar suggests the following best practices to minimize contested transactions:

• Fast and responsive customer service: Address customer concerns promptly and professionally to resolve issues before they lead to chargebacks
• Clear refund communication: If you issue an offline refund, ensure that your customer knows what to expect. Let them know when and how you send the payment when they can expect to see the payment in their bank account, and anything else your customer needs to know.