Understanding Chargebacks and Disputes on Fundraisers

What is a chargeback?

A chargeback occurs when a cardholder contacts their bank or credit card provider to dispute a transaction instead of requesting a refund directly. Once a chargeback is initiated, the card issuer determines the outcome after reviewing the information provided by both parties.

How does Snap respond to chargebacks on fundraisers?

When a chargeback is received, our team reviews the dispute and determines the appropriate response.

If the chargeback appears to be valid, we may accept the dispute.

If we believe the donation or purchase was legitimate, we submit supporting evidence through our payment processor to help the card issuer make an informed decision. Evidence may include transaction details, fundraiser information, and other relevant documentation.

Chargebacks are processed according to the timelines and requirements established by our payment processors and the cardholder's financial institution.

The impact of a chargeback depends on when it is received.

During an active fundraiser

If a chargeback is initiated while your fundraiser is still active, the disputed amount is deducted from your fundraiser's current balance. As a result, the funds available for payout may be reduced until the dispute is resolved.

After a fundraiser has concluded

If a chargeback is received after your organization has already received the fundraising funds and the dispute is ultimately decided in the cardholder's favor, Snap absorbs the cost of the chargeback and any associated processing fees. Your organization will not be invoiced or asked to repay those funds.

Can chargebacks be prevented?

While no fundraiser can completely eliminate chargebacks, the following best practices can help reduce the likelihood of disputes:

• Encourage supporters to keep their donation confirmation email or receipt.
• Clearly communicate the purpose of your fundraiser and what supporters can expect.
• Remind supporters that charges will appear on their payment statement according to the payment processor's billing descriptor.
• Respond promptly if a supporter reaches out with questions about a donation before they contact their bank.

Frequently Asked Questions

Can my organization dispute a chargeback directly?

No. Chargebacks are managed through Snap's payment processing partners. Our team reviews each dispute and submits evidence when appropriate.

Will my organization owe money if a chargeback is lost after we've been paid?

No. If the chargeback is received after your fundraiser has been paid out and the dispute is ultimately lost, Snap covers the chargeback amount and any associated fees. Your organization will not be billed.