What is a Payment Dispute?
A payment dispute is when a customer doesn't recognise or authorise a payment that has been taken from their bank account. The customer challenges this transaction with their bank, with the intention of seeking a full refund, or clarification of what the transaction was for.
Fear not... this can be resolved so that everyone comes out a winner. All it takes is some prompt communication with WeTeachMe and the customer that has raised the dispute.
The steps WeTeachMe takes when a dispute is raised:
- When a dispute is lodged by the customer, WeTeachMe will flag the payment in the system and hold the original payment amount.
- Notification emails will be sent to both parties involved.
- If the dispute is resolved (in WeTeachMe's favour), the payment funds will be released to the vendor.
- If dispute is not resolved (in WeTeachMe's favour), the payment funds and an additional dispute fee from Stripe will be debited against the vendor.(https://stripe.com/docs/disputes#fees)
Please note that the only time a vendor can issue a full refund is before a payment dispute has been logged or after it is resolved.
Payment Disputes In Your Vendor Dashboard
All ongoing or resolved disputes will be reflected in your vendor dashboard. Dispute status, held funds and applied bank charges if lost will be highlighted within the order. The balance for withdrawal will also indicate any held funds.
Ways to Resolve
- If you, the vendor recognise that you have made an error and for example have over charged the customer, then the fastest way to resolve this would be to REPLY TO ALL in this email thread to notify all parties concerned.
REPLY TO ALL will allow WeTeachMe to log relevant evidence for the bank to review, this will allow for funds to be released and you can then issue a refund.
Implications if Left Unresolved
A swift reply would be greatly received by both parties to ensure that the bank doesn't reverse the transaction. If they do, it could result in:
- The customer losing their spot in the class.
- The vendor having to absorb the original order amount in full.
- The vendor will have to absorb a dispute fee from the bank.
- The vendor having to absorb all associated transaction fees.
- The vendor not being able to resell this spot.
The bank will operate on a strict timeframe for the dispute to be resolved. It is therefore advised to respond immediately to any correspondence from The WeTeachMe Team.
I am a customer, what does it mean for me and how can it be resolved? Find out more here