Manage Transactions

Chargebacks

The difference between a credit and a chargeback

A credit is the result of a donor requesting that a donation be refunded. For example, duplicate or multiple charges, or an incorrect amount.

A chargeback is the result of a donor who calls the card issuer to file a dispute. The card issuer is the initiator of the chargeback process while GiveDirect and the charity are the recipients of a chargeback.

A retrieval request is the result of a donor asking for clarification of a credit card charge before a dispute is submitted. This request is handled offline and will not be recorded in the Control Panel. If clarification, such as a registration form or proof of shipped merchandise is required, GiveDirect will contact the charity.

Chargeback procedures

When GiveDirect is notified of a chargeback, a new line item will be entered into the Control Panel. The charity will receive an email notification of the chargeback. Upon receipt of the notification, the charity should contact the donor to determine if there was a misunderstanding, i.e. the donor did not recognize the billing descriptor on the card statement, or the donation was made by one card holder without notifying the other card holder(s) . If the chargeback was requested due to a misunderstanding, then the donor must call the credit card issuer to request a chargeback reversal.

Since donations are voluntary and the donor usually does not receive services in exchange for the donation, it is almost impossible to rebut a chargeback. However, if a payment was made in exchange for a service, such as an event ticket, auction item, or payment for other services, the charity must provide proof that such service was received and/or used by the purchaser.

If the charity can provide such proof and if the documentation is accepted by the credit card issuer as valid proof/documentation, then a chargeback reversal will be submitted by the card issuer. Acceptance of documentation as valid proof of service or receipt of merchandise is totally dependent on the policies and procedures of the card issuer. The card issuer's judgement is final.

Once a transaction has entered the chargeback process, the charity SHOULD NOT issue a refund; let the refund be handled through the chargeback channels. Issuing a credit will convolute the process and may result in a transaction refunded twice at the expense of the charity.

Time line

The charity will have approximately three weeks to respond to a chargeback and approximately one week to respond to a retrieval request.

It may take a credit card company 4 to 6 weeks to accept or reject a rebuttal.

Arbitration

If a disputed transaction is $5,000.00 or more and the charity wishes to rebut the chargeback, the credit card company will automatically proceed with arbitration. If the charity loses the arbitration case, the credit card company will assess an arbitration fee which could be as high as $5,000.00. The charity will be liable for any arbitration fee charged to GiveDirect. Arbitration fees are not disclosed beforehand and once assessed the fee is final with no recourse available to either the charity or GiveDirect.

Financial responsibility

Distributions of donation proceeds are made in good faith that your donor(s) will not dispute transactions which result in a chargeback or refund. If a transaction is disputed, and amounts are refunded to the donor after distribution to the charity is made, the organization is responsible to reimburse GiveDirect for such amount(s). If the refunded amount exceeds the next month's transactions, the deficit will be debited from the charity's bank account on the next regular distribution date.

A chargeback reversal cannot be recorded unless the reversal is processed by the card issuer and funds are received back into our bank account. Once funds are returned a distribution will be made to the charity on the next regularly scheduled deposit date.

General policies

As a general rule, if a dispute was submitted due to a duplicate transaction or in the case of donor who claims that a recurring donation cancellation was requested, GiveDirect will automatically accept the chargeback without seeking the charity's input.

If the chargeback is for other reasons, i.e., claims that the donor did not receive requested merchandise, or merchandise was defective, the charity will be notified and allowed the opportunity to provide documentation to disprove the donor's claim. It is important that a rebuttal is submitted in a timely manner. Once the dispute period passes, all rebuttal rights are suspended by the credit card issuer.