Understanding Chargebacks for Registration
What is a chargeback?
A chargeback occurs when a customer contacts their bank or credit card provider to dispute a transaction instead of requesting a refund or resolving the issue directly with the organization. Once a chargeback is initiated, the card issuer reviews the information provided by both parties before making a final decision.
How does Snap respond to chargebacks?
When a chargeback is received, our team reviews the dispute and manages the response on your organization's behalf.
As part of our review, we:
- Evaluate the reason for the dispute.
- Contact the customer when appropriate to provide additional context or clarify the transaction in hopes of resolving the issue before the dispute requires evidence.
- Reach out to the organization administrator if additional documentation or information is needed to support the transaction.
- Compile all available evidence and submit it through our payment processing partners for review by the cardholder's financial institution.
Supporting documentation may include transaction records, payment history, program details, registration information, signed agreements or waivers, communications with the customer, or other relevant documentation.
Chargebacks are processed according to the timelines and requirements established by our payment processors and the cardholder's financial institution.
What can my organization do to help?
Organizations play an important role in responding to chargebacks.
If our team requests additional information, providing documentation promptly gives us the best opportunity to build a strong response. Helpful documentation may include registration forms, invoices, communications with the customer, attendance records, signed policies, or other records demonstrating the validity of the transaction.
While submitting evidence does not guarantee the dispute will be resolved in the organization's favor, complete and timely documentation can improve the likelihood of a successful outcome.
What happens if a chargeback is lost?
If the card issuer determines that the chargeback should be decided in the customer's favor, the disputed transaction amount and any applicable chargeback fees become the responsibility of the organization.
Rather than invoicing your organization, these amounts are deducted from future monthly payouts until the balance has been recovered.
Will I be notified?
Yes. If we need additional information to respond to a dispute, we'll contact the organization administrator listed on the account. Prompt responses help ensure we can submit the strongest possible evidence within the processor's required timeframe.
Can chargebacks be prevented?
While chargebacks cannot always be prevented, organizations can reduce their likelihood by:
- Clearly communicating program fees, payment terms, and refund policies before payment is collected.
- Responding promptly to participant or parent questions and concerns.
- Keeping accurate records of registrations, payments, communications, and any signed agreements or waivers.
- Encouraging customers to contact your organization or Snap Support before disputing a charge with their bank.
Frequently Asked Questions
How long does a chargeback take?
Chargeback timelines vary depending on the payment processor, card network, and the customer's financial institution. Some disputes are resolved within a few weeks, while others may take several months.
Will Snap contact customers about a chargeback?
When appropriate, yes. Our team may contact the customer to provide additional information or clarify the transaction in an effort to resolve the dispute before a final decision is made.
Will my organization be asked to provide information?
Possibly. If additional documentation is needed to support the dispute, we'll contact the organization administrator. Timely responses help us submit the strongest possible evidence.
Who is responsible if a chargeback is lost?
If the dispute is ultimately decided in the customer's favor, the organization is responsible for the disputed amount and any applicable chargeback fees. These amounts are deducted from future monthly payouts.