A chargeback happens when a client disputes a transaction on their account and asks their bank to issue a refund. 

• Chargebacks overview
• Chargeback process
• Chargeback prevention

Chargebacks overview

Your clients may initiate a chargeback for various reasons, with these three being the primary ones:

• Unauthorized transaction - The charge was not authorised by the cardholder, indicating genuine fraud.
• Non-Delivery - When the cardholder has made a payment for a service or a product that they have not received.
• Delayed Refund - The cardholder requested a refund, but the process took longer than expected.

Chargebacks are time-sensitive (5 working days), therefore we need your prompt collaboration in addressing them as swiftly as possible.

Chargeback process

During the dispute process, our goal is to assist you in presenting the relevant evidence to the cardholder's bank, maximising your chances of safeguarding your sale.

This is what happens when a client initiates a chargeback:

1. The cardholder contacts their card-issuing bank to file a complaint.
2. The bank identifies the disputed transaction and proceeds to provide an instant refund of the the disputed transaction amount on the cardholder’s
3. Simultaneously, this action triggers a deduction of the disputed amount and a penalty charge on Fresha’s end.
4. Fresha will send you an email to notify you about the chargeback that has been raised against your business, and you will have 5 working days to submit your information requested by your cardholder's bank. The bank is looking for any supporting evidence you can provide concerning the transaction, which includes but is not limited to contracts, invoices, email exchanges, or documented proof of delivery.

If the dispute is won, the funds are sent back to Fresha. However, if the dispute is lost, the funds remain with the cardholder and Fresha will deduct the funds from your Wallet.

Chargeback prevention

Chargebacks are common when processing card payments and in most cases they lie outside your control Your swift response, coupled with a few proactive chargeback prevention efforts, stand as your most effective means to protect your funds.

Below, we've outlined some of top-tier practices aimed at reducing the incidence of chargebacks:

• Opt for more secure card transaction payment methods - For example, payment methods such as send link, QR code, capture card details or upfront deposits are more secure as they require only customer's involvement rather than relying on your own input or data collection. Charging your customers through manually entered card details is less secure and more prone to fraud, leading to additional payment processing costs for you.
• Make sure your policies (refund, return, and cancellation) are clear - It is important to maintain clarity in your memberships, pricing, cancellation policies, and return policies. Ideally, these policies should be comprehensive, and accessible to your customers at all times. Additionally, you can add a custom receipt message to highlight your policies.