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 the funds to be returned to them. A customer might file a chargeback because they do not recognize a charge or did not authorize a payment. In some cases, if the card has been compromised (fraud, lost, stolen), the card issuing bank may create the chargebacks on behalf of their customer. Consumers have up to 6 months to dispute any charge. Either the full amount or a partial chargeback can be issued for the transaction. Partial chargebacks may be handled offline, depending upon the complexity of the partial chargeback.
When a chargeback (or chargeback reversal) happens, the appropriate data is automatically pulled into Eleyo. The main Dashboard will reflect Chargebacks this Month under the Operations section. The system creates a transaction that is treated similar to a refund. The disputed funds are debited from the system and are indicated appropriately on financial reports for bank reconciliation. For chargeback reversals, the system creates a new payment, linked to all previous history and displaying correctly on financial reports.
If you have questions about a specific chargeback (including wanting to try to fight the chargeback and try to recover the funds), for fastest service, it is recommended to reply to the chargeback notification email received by the program. The team that handles chargebacks will provide recommendations on what documentation to provide if you wish to try to fight the chargeback. Once that documentation is submitted to the banks involved, it is a process that can take time to resolve. The team that handles chargebacks will inform you if there is a reversal. If you do not know which staff receive the emailed chargeback notifications, please contact Support.
What to do when a Chargeback Occurs
Your district/program can handle chargebacks in several ways. If you have communicated with the consumer and the chargeback was issued in error, for a Course enrollment, you can create a pending payment in the system and require the customer pay the amount due. You can also use a credit adjustment to write-off the amount that was disputed. For child care payments, the system will automatically apply the amount due to the balance owed on the account. You can use a credit adjustment to write off that amount if necessary. The decision on what to do would be district/program determination based on the specific situation.
Viewing Chargebacks from the Dashboard
- Select the Dashboard tool from the top toolbar
- Select Chargebacks this Month
- When the list is displayed, select the desired one then select View Chargeback to see the details.
Viewing a specific Chargeback
- 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.