Overview
A dispute, also called a chargeback, is when a customer contacts their bank or card issuer and asks for a payment to be reversed instead of coming to you directly.
The money is pulled back while the bank investigates. You get a window to respond with evidence that the work was done and the charge was valid.
This article covers what happens, what you need to do, and how to reduce the chance of it happening again. It applies to online card payments taken through MotionOps Payments.
How It Works
A dispute follows a fixed sequence, and the deadlines are set by the card networks, not by MotionOps:
The customer disputes the charge with their card issuer.
The funds are held on your account while the case is open.
You are notified via email.
You respond with evidence, or accept the dispute. Typically, our Customer Success team assists you in this process and reaches out proactively.
The issuer decides. If you win, the funds are returned. If you lose, the reversal stands. The typical timeframe depends on the bank, payment processor, and related institutions.
Deadlines are hard. Once you receive the email, if you miss the response window, the dispute is decided against you automatically, even when you had good evidence.
How to Respond to a Dispute
The processor usually asks for KYC details, and our Customer Success team assists you in providing all the details throughout the entire process. You'll be in good hands.
A good response needs to prove knowledge of who the customer is (full name, billing and service address), what type of work was done (MotionOps proposals and invoices are proof of that), and additionally, any digitally signed contracts always help - which is where MotionOps Service Agreements and signatures come in handy.
What Evidence to Send
The stronger your paper trail, the better your odds. MotionOps already holds most of what you need:
The signed proposal or service agreement showing the customer agreed to the work and the price.
The invoice showing what was billed and when.
Before, progress, and after photos from the job, which show the work was actually performed.
Completed checklists signed off on site.
Timesheets showing when your crew was on site.
Any change orders the customer approved, if the dispute is about the amount rather than the work.
The Job Card Report pulls proposals, timesheets, invoices, checklists, and waivers for a work order into one printable document, which makes it a practical single attachment for a dispute response.
Reducing Disputes Before They Happen
Get the agreement signed before work starts. A signed service agreement is the single most useful piece of evidence in a dispute.
Tell customers about the service fee up front. An unexpected 3% on a card charge is a common trigger for a customer calling their bank instead of you.
Use a recognisable business name. Customers dispute charges they don't recognise on their statement. [confirm: what descriptor appears on the customer's card statement, and can it be changed?]
Photograph every job. Before and after photos answer the most common dispute reason, which is that the work was not done or not done properly.
Answer the phone. Most disputes start with a customer who couldn't reach you. Resolving it directly and issuing a refund yourself costs less than losing a chargeback.
Refund or Dispute
If a customer is unhappy and you agree they should get their money back, refund them yourself rather than letting it become a dispute.
A refund is under your control, settles quickly, and does not count against you. A dispute is decided by someone else, ties up the funds while it runs, and
See Refunding a Payment.
Things to Know
Disputes apply to online card payments. Cash and check payments you recorded manually cannot be disputed through a card issuer.
Response deadlines are set by the card networks and cannot be extended.
Funds are held or withdrawn while a dispute is open, before any decision is made.
Winning a dispute returns the funds. It does not undo the temporary withdrawal, so your cash flow is affected either way.
A refund and a dispute are separate transactions. Issuing a refund does not close an open dispute.
Troubleshooting
Money disappeared from my account and I don't know why.
Check for an open dispute. Disputed funds are withdrawn as soon as the case opens, before you have responded. Open Invoices page and filter our Disputed status, and keep an eye on your email for a Chargeback notification.
The customer says they never disputed anything.
Disputes are sometimes filed by a spouse or business partner on the same card, or triggered by a statement descriptor the cardholder didn't recognise. Ask the customer to contact their bank and withdraw the dispute, then respond with your evidence anyway in case they don't.
I missed the response deadline.
The dispute is decided against you and cannot be reopened. Contact the customer directly to arrange payment another way.
Have questions? Reach out via the support chat or email support@motionops.com.