Overview
The purpose of this article is to assist Boulevard customers with learning about common dispute reasons that their clients use to issue disputes through their Card Issuing Bank(s) and recommendations on how our customers can address and respond to the dispute.
Common Dispute Reasons
Merchandise/Services Not Received.
Goods/Services Not as Described.
Canceled Merchandise/Services.
Canceled Recurring Transaction.
Duplicate Billing.
Other Fraud - Card Absent Environment.
Before you respond to a dispute, first take note of the Reason that the charge is being disputed. If you are caught off guard by this dispute, we recommend first calling your client to understand why they issued a dispute. It is possible they did it in error and/or they may be willing to compromise and have the dispute reversed with their Card Issuing Bank.
Merchandise/Services Not Received
Your client is telling their Issuing Bank that they are disputing their transaction due to not coming in for a service or purchasing a product. This code is often used for when a business has a Cancellation Policy in place that a cardholder (your client) violates and this results in their being billed a Late Cancel/No-Show fee. In the Response you draft and the evidence that you provide to the Card Issuing Bank for review; you will want to address the reason and call out why it is inaccurate and tell your story as to why that is.
Did they come in for the service?
Did they purchase a product?
Did they sign anything before or during the service (ex: policy or receipt)?
Do you have Before/After photos?
If you are a Medspa, do you have a copy of ID and/or Insurance?
Goods/Services Not as Described
Your client is telling their Issuing Bank that they are disputing their transaction due to the Services they Received were Not as Described. Meaning, what they thought would be performed did not meet their expectations. Cardholders (your client) will often also use this dispute reason when they are charged a fee related to a Late Cancel/No-Show fee. In the Response you draft and the evidence that you provide to the Card Issuing Bank for review; consider the following that can be added to your response:
Did they have a documented consultation with a professional informing them of what to expect that you have a copy of with a date and a signature?
Do you display on your website a list of your services with a note about what will be done during the service and what to expect?
Do you disclose an Intake Form to your clients that outlines what will be performed that they are required to review, acknowledge, and sign?
Did your client provide feedback during their appointment and/or after, before they issued a dispute that would allow you to accommodate them if it is within reason?
Did you offer an accommodation that the cardholder (your client) refused?
Canceled Merchandise/Services and Canceled Recurring Transaction
Your client is telling their Issuing Bank that they are disputing the transaction due to their claim that they have requested to Cancel either a Service or a recurring transaction (i.e. Membership). Visa, Mastercard, Discover, and American Express require that once a cardholder (your client) requests to cancel that you as the business are not able to charge their card again. The Issuing Banks will side with your client if a request comes through and they are charged after the request.
Additionally, the cardholder (your client) is not required to provide proof to their Issuer the date & time or method they requested to cancel.
It is recommended that you set a Cancellation Policy and/or Membership Agreement that clearly discloses how your client is required to Cancel with your business (ex: “To cancel you will need to send it in writing to our email contact@businessname.com”). A way to capture this is through a form that your client is required to acknowledge by signing and dating. Boulevard has Forms that can assist with capturing this information.
For more recommendations about setting parameters for a Cancellation Policy please view our article here.
Items to consider before responding to this reason for a dispute:
Did you disclose your Cancellation Policy to your client?
Do you have a copy via text, form, or email that shows they acknowledged receiving it?
Did they get 24-hours notice of your policy before a fee was applied for a Late Cancel/No-Show?
Did you attempt to assist your client with rescheduling before applying a fee?
Did you send text and/or email reminders that also included your Cancellation Policy?
Do you have a written copy of their request to cancel that you can highlight the date they requested as well as the email and/or phone number they requested from?
Duplicate Billing
Your client is telling their Issuing Bank that they are disputing the transaction due to their belief they were charged for the same transaction twice. It could be they paid for another person for the same service (ex: family member coming in at the same time) or it could be an accidental error where your front desk charged them twice which you should be able to locate under their history in their profile. If you do discover a duplicate was charged, do not issue a refund. The dispute acts as a refund and you can Accept & Close the case if you agree to that there was a duplicate charge.
Other Fraud - Card Absent Environment
Your client is telling their Issuing Bank that they are disputing their transaction due to their not authorizing participating in the transaction. This is often used when a Cancellation Policy fee is commenced for your client when they Late Cancel or No-Show an appointment and this is also seen when your client requests to cancel a recurring transaction such as a Membership fee and they are continued to be billed.
To prove this reason code is inaccurate/invalid you will want to call out why that is and explain to the Issuing Bank why this transaction occurred and provide any supporting documentation that will showcase from your side specific details, dates, signatures on forms, text messages or emails, etc. that show the validity of this transaction from your side.