If a customer disputes a payment
If one of your customers disputes a payment that’s appeared on their bank statement, we’ll email you with details of the dispute.
You’ll need to reply to the email with proof that you supplied the goods or services as was expected and agreed to. The customer’s bank will then review the documentation to determine if a chargeback is required.
If your customer's bank determines that the chargeback is required, Stripe will process it. Stripe will either debit the charge against:
the amount you're waiting to be paid from other transactions, or
from your nominated bank account.
Don't worry, if a chargeback would put your balance into the negative, it'll be charged against your bank account.
How to avoid chargebacks and disputes
As chargebacks aren’t usually easy to resolve – and you might also incur other fees if you’ve received a chargeback – you should do your best to avoid customers having to resort to initiating a chargeback:
Make sure your invoices have accurate and detailed descriptions of the items or services you’re providing.
Ensure you've recorded the customer's shipping address and that it appears on the invoices you send them.
Supply the goods or services as was agreed to by you and your customers.
Get in touch with your customers if you expect the delivery of items to be delayed.
Have a refund/return/exchange policy that your customers can turn to if there is an issue with the transaction, rather than having to go through the chargeback process.
MYOB's role in chargebacks
MYOB's role is to collect information about disputed transactions and pass this on to Stripe to help them resolve the chargeback. MYOB doesn't assess the merits of a chargeback claim, nor do we initiate or handle chargebacks – this is the responsibility of your customer’s financial institution.