Manage chargebacks

How chargebacks work

Chargebacks are initiated by the cardholder in collaboration with their bank. A client may initiate a chargeback for various reasons, with these being the primary ones:

• Services/products are defective not as described: 
  The cardholder reports that the service or product they received did not match the description given at the time of purchase.
• Canceled services/products: 
  The cardholder claims to have returned products or canceled services, yet they have not received the corresponding refund.
• Unauthorized transaction: 
  The charge was not authorized by the cardholder.
• Non-delivery: 
  The cardholder has made payment for a service or product that they have not received.
• Delayed refund: 
  The cardholder requested a refund, but the process took longer than expected.

Understanding the process

During the dispute process, our goal is to assist you in presenting the relevant evidence to the cardholder's bank, maximizing your chances of safeguarding your sale.

This is what happens when a client initiates a chargeback:

1. The cardholder contacts their card-issuing bank to file a complaint.
2. The bank identifies the disputed transaction and proceeds to provide an instant refund of the disputed transaction amount on the cardholder’s bank account.
3. Simultaneously, this action triggers a deduction of the disputed amount and a penalty charge on Fresha’s end.
4. Fresha will send you an email to notify you about the chargeback raised against your business. You will have 5 days to submit the information requested by your cardholder's bank. The bank is looking for any supporting evidence you can provide concerning the transaction, including but not limited to contracts, invoices, email exchanges, or documented proof of delivery.
5. If the dispute is won, the funds are sent back to Fresha. However, if the dispute is lost, the funds remain with the cardholder and will be automatically deducted from your Fresha wallet.

Preventing chargebacks

Chargebacks are common when processing card payments and, in most cases, lie outside your control. Your swift response and a few proactive chargeback prevention efforts stand as your most effective means to protect your funds.

Below, we've outlined some handy practices that could help reduce the occurrence of chargebacks:

• Choose secure payment methods: 
  Opt for in-person payments, where clients physically tap, insert, or swipe their cards at the point of sale, reducing the risk of fraud. Instead of using Manual card entry, utilize methods like payment links, QR codes, capturing card details, or requesting upfront deposits. These methods involve client participation while cutting out the additional payment processing costs incurred with manual card entry.
• Make sure your policies are clear:
  Keep your memberships, pricing, cancellation policies, and return policies comprehensive and accessible to clients at all times. Try communicating these policies by:  
  • Having them readily available on your website.
  • Highlighting them within your custom receipt message.
  • Creating a form outlining the policies for first-time clients.
• Maintain accurate client records:
  Protect your business by updating client information regularly. Consider taking photos of the services provided. This can be a great way to showcase your exceptional work and provide evidence if a client disputes the quality of services received.

Preventing fraud

Keeping an eye out for any unusual activity is important for spotting and dealing with possible fraud. Here are some tips to help you spot suspicious transactions:

• Watch out for clients with unusual contact details in their accounts, including names or email addresses. If you're unsure about someone's identity, ask them for ID and the last four digits of their card to double-check.
• If a new client starts making multiple purchases over a short time, verify their identity and confirm that they own the card used.
• When someone wants to manually add their card details, ask for ID. That way, you can match the name on the card to their ID.
• If a client is using a gift card that doesn't belong to them and cannot provide the purchaser's name, reach out to the person who bought the gift card for verification.