Managing Payment Disputes with Squarespace Payments

Payment disputes occur when customers contest transactions through their bank. Here's how to effectively manage these situations.

Common Dispute Reasons:

• Fraudulent charges
• Unreceived refunds
• Duplicate transactions
• Product/service not received
• Unsatisfactory product/service quality
• Subscription cancelation issues
• Unrecognized payments

Understanding Chargebacks:

• Disputed funds and a $20.00 fee are immediately deducted from your transfer balance
• If insufficient funds exist, money is drawn from your linked bank account
• Inquiry requests (from American Express and Discover) don't incur immediate fees

Viewing Disputes:

1. Open the Finance panel
2. Click "View details" next to "Review a recent payment dispute"

Dispute Status Types:

• Dispute open
• Response sent
• Deadline passed
• Dispute won
• Dispute lost

Managing Disputes:

To Accept a Dispute:

1. Open Finance panel
2. Click "View details" next to the dispute
3. Select "Accept the dispute"

To Contest a Dispute:

1. Access Finance panel and click Orders
2. Select the disputed payment
3. Click "Respond to dispute" or "New response"
4. Submit relevant evidence:
   • Refund policy/Terms of Service
   • Refund refusal explanation
   • Delivery tracking information
   • Customer communication records
5. Save draft or submit response

Important Notes:

• Response time varies between 20-45 days depending on card type
• Reminders sent 5 days and 2 days before deadline
• No refunds possible once dispute is filed
• Bank decisions typically take 60-75 days
• Winning disputes results in transaction amount return
• Chargeback fees may or may not be refunded based on bank decision
• Non-response results in automatic dispute loss

Best Practice: Always attempt to resolve disputes directly with customers before proceeding through formal channels.

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