When a customer files a chargeback with their credit card issuer, it means that they are disputing a charge and asking the card issuer for a refund. A customer might file a chargeback because they do not recognize a charge or did not authorize a payment. In some cases, if fraud has occurred, the bank may issue the chargebacks on behalf of their customer. Consumers have up to 6 months to dispute any charge.
Chargeback data (including a reversal) is automatically pulled into Eleyo. When a chargeback happens, the system creates a "refund-like" transaction and indicates appropriately on financial reports for bank reconciliation. For reversals, the system creates a new payment, linked to all previous history and displaying correctly on financial reports.
Note: Partial chargebacks may be handled offline, depending upon the complexity of the partial chargeback. If you have questions about a specific chargeback, for fastest service, it is recommended to reply to the chargeback notification email received by the district/program.
What to do when a Chargeback Occurs
Your district/program can handle chargebacks in several ways. If the chargeback was issued in error, you can create a pending payment in the system and require the customer pay the amount due. You can also use an adjustment to write-off the amount that was disputed. The decision on what to do would be district/program determination based on the specific situation.
- Point to Finance
- Select Chargebacks
- Select the desired Chargeback and select Show Chargeback to view details
Viewing Chargebacks on Transactions Reports
Chargebacks are part of the financial reconciliation process and are included on Transactions Reports as well as Daily Transactions Reports. Below is an example of a Chargeback line item on a Transactions Report.