What is a chargeback?

What is a chargeback?

What is a chargeback?

Suppose a credit card owner does not recognize or agree with a payment on their statement. In that case, their credit card company will instantly recover the funds from the merchant, through their payments processor, upon their request.

If a chargeback is issued against you and the funds were already sent to your bank account, we would need to recover them from that account. This recovery process can take up to ten days to complete and may result in the payments you receive during this time being held until the funds are fully recovered.

Payment processors are under strict regulations to comply with chargebacks, but a chargeback can be challenged and, in some cases, won in the merchant’s favor, meaning the funds would be taken back from the client and returned to you.

How can I dispute a chargeback?

If a chargeback is issued against you, we will immediately notify you and give you the option to challenge it. You will have five business days to initiate the challenge and will be asked to provide supporting documentation such as a signed contract, photos of work completed, copies of text messages or emails where the client indicated satisfaction with the completion of the work, etc. The email you receive will have specific instructions on how to do this.

We will then fight the chargeback on your behalf and notify you of the results. Ultimately the credit card company has the final say, and we are bound by card network regulations to comply with their decision. Still, in clear cases where the chargeback is fraudulent or a mistake, we may be able to win your funds back for you.

Chargebacks can take a long time to resolve, and while we are working as quickly as possible for you, we are ultimately on the credit card company’s schedule. Chargeback disputes can take up to 45 days to resolve. In some very rare cases, they can take up to 90 days.

For more information, check out:

How can I protect myself against chargebacks?

How to protect yourself from scams and fraud


    • Related Articles

    • How can I protect myself against chargebacks?

      How can I protect myself against chargebacks? If you haven’t already, please be sure to check out our guide. What is a chargeback? to learn about how chargebacks work and how they can affect you and your payments. Because of the high risk of ...
    • Five important reasons to avoid chargebacks

      Five important reasons to avoid chargebacks Written by Success-Team Updated over a week ago   Situations where your client wants their money back after paying you can be challenging to navigate. In some cases, you may agree with them, while in ...
    • What is WePay?

      Lendio's invoicing solution allows businesses like your to  collect payments directly from your customers through a partnership with WePay. WePay is an online payment service provider powered by Chase that provides an integrated payment solution so ...
    • What is the fee rate for Sunrise Pay?

      Sunrise Plus Customers: the standard rate for Sunrise Pay 2.55% and 30 cents for credit cards. For ACH: 0.5% for ACH payments and 30 cents. For Free Sunrise Customers: the standard rate for Sunrise Pay 3.55% and 30 cents for credit cards. For ACH: ...
    • What is a reserve limit?

      What is a reserve limit? Written by Success-Team Updated over a week ago Reserve limits are a payment processor's way of protecting you from chargebacks. When you first start using Sunrise Pay, your reserve limit is set to $10k a week. You can still ...