A chargeback through WePay occurs when your client contacts their bank or credit card company to dispute a credit card charge. Common reasons for chargebacks include:
- Charge on statement is not recognized (this appears as WPY*yourcompanyname)
- Client did not receive product or service
- Client was unsatisfied with product or service
- Credit card was stolen or used without permission
The best thing you can do when you’ve received a chargeback is to contact your client immediately. Your client can contact their bank and cancel or reverse the chargeback process. This is by far the fastest and most effective solution. When a chargeback is issued, the following happens:
- The funds are instantly withdrawn from your WePay account
- A $15 non-refundable chargeback fee is deducted from your WePay account, this appears as an expense in your FreshBooks account
- If funds are not available in your WePay account, funds are withdrawn from your connected bank account
- WePay will send you an email with the details of the chargeback. You can either:
- Concede, if you cannot prove the goods or services were not provided
- Challenge, if the payment was wrongfully disputed, and provide supporting documents
- You have 5 business days to challenge the chargeback
- Once WePay receives your chargeback challenge and supporting documents, WePay will contest the chargeback on your behalf with the appropriate credit card company or issuing bank. The timing for this process varies and can take up to 90 days
- If you win the chargeback, WePay will send you a notification and release the disputed funds back to your account - this can take up to several business days for WePay to process. You'll also need to manually mark your invoice as paid again with the steps here. The $15 non-refundable chargeback fee will still remain as an expense in your FreshBooks account.
For more details on chargebacks and what you can do to avoid them, review WePay’s details here.