An Overview of Credit Card Disputes

 The purpose of this document is to provide you more in depth information with regards to industry dispute handling.


Overview

In the past, Xola has paid for disputed charges out of pocket at the time the dispute is filed, and charged the Seller (you) for the amount and fee only after the dispute is resolved in favor of the cardholder. In cases where you won or it was dropped, you would have seen no change to your balance. Moving forward we must comply with industry standards and regulations for credit card payment processing.

Henceforward you will see that funds and fees are deducted from your Xola balance at the time the dispute is filed. If the dispute is resolved in favor of the credit card holder, then there are no further actions. If the dispute is resolved in your favor, then the funds and fee will be added back to your Xola balance at the time of resolution and you will be notified via email.

Example of the email you will receive when a dispute is filed

Subject: You have a credit card dispute for $$$$
From/Reply-to: chargebacks@xola.com

We're sorry to report that one of your customers has disputed a $$ charge. The credit card processor has deducted this amount and a chargeback fee of $15 from your account balance.
Our dispute resolution team will challenge this dispute by submitting evidence on your behalf and by contacting the customer to make sure that they recognized the charge. If the dispute is resolved in your favor this amount will be returned to you at the time of resolution.
If you have any questions about this or would like to submit special evidence please write to chargebacks@xola.com or just reply to this email.

Here's some more details about the charge that was disputed:
Trip name: <experience name>
Booked on: <order creation date localized>
Arrival date: <arrival date & time localized>
Booking link: <URL to booking details page>
Dispute type: <dispute type>

Please read this article for more information about Disputes.

 

Fighting Disputes

To set expectations: Disputes are almost always resolved in favor of the cardholder because it is the issuing bank who decides the result of all disputes and it is usually in their best interest to make their customer happy. Losing the occasional credit card dispute should be considered a cost of doing business and factored into your budget.

The best thing you can do to win a dispute is to avoid it in the first place by communicating with dissatisfied and tardy/absent customers and offering refunds, coupons or assistance in rescheduling.

Another important thing to know about disputes is that if you issue a partial refund on a transaction, the cardholder can still dispute the full amount of the charge and win the full amount. For this reason we advise against offering a partial refund to an upset customer.

In the case of every dispute, Xola will submit standard evidence on your behalf such as the date of service and service documentation (your confirmation email including cancellation policy, other considerations and terms of service). You may send us additional evidence to submit but the deadlines for responding to disputes are short, so we ask that you reply to our notification within three days if you would like us to include it.

Please note: Your cancellation policy and/or terms of service will not have much impact on the resolution of a dispute. Though they are great for setting customer expectations, if a customer cancels and is not eligible for refund according to your cancellation policy they are still likely to win the dispute.

There are several types of dispute you may encounter (there are others, but you are unlikely to encounter them):

1. Fraudulent
What it means: The owner of the card says that they didn’t authorize the charge. This is the most common reason for a dispute and can happen if the card was lost or stolen. It can also happen if the cardholder doesn’t recognize the charge as it appears on the billing statement from their bank.
Required to overturn dispute: Get the cardholder to withdraw the dispute by helping them identify the charge or prove to the bank that their cardholder did authorize the transaction.
What Xola will do: In addition to submitting standard evidence, Xola will attempt to contact the cardholder to help them recognize the charge, but often this type of dispute is actual fraud (i.e. someone purchased a service from you with a stolen card) and not possible to win.

2. Unrecognized
What it means: The customer doesn’t recognize the charge appearing on their card statement.
Required to overturn dispute: As with fraudulent disputes, get your customer to withdraw the dispute by helping them identify the charge.
What Xola will do: In addition to submitting standard evidence, Xola will attempt to contact the cardholder to help them recognize the charge. These are the easiest type to win as often the customer did simply forget about the charge or what it was for. If the customer replies saying they do recognize the charge, we will ask them to drop the dispute. It is crucial to winning this type of dispute that the customer actually contact their bank to drop the dispute. If they do not drop the dispute after telling us they will, we may ask you to contact them directly to request they contact their bank to cancel it.

3. Product not received
What it means: The customer says they did not receive the products or services purchased.
Required to overturn dispute: Demonstrate that the customer received a physical product or offline service prior to the date the dispute was initiated, or made use of a digital product or online service prior to the date the dispute was initiated.
What Xola will do: In addition to submitting standard evidence, Xola will attempt to contact the cardholder to help them recognize the charge as this type of dispute is sometimes submitted by customers who did not recognize the charge. Another common reason for this type of dispute is that the customer cancelled or was absent, and did not receive a refund. This type of dispute is difficult to win regardless of your cancellation policy, but to give yourself the best chance make sure to include a Cancellation Policy in the description for every one of your listings.



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