A dispute occurs when a consumer involves their bank or credit card network to protest a charge on their statement. Some common reasons why a consumer would kick off this process is that they don't recognize a charge or that the charge is incorrect, or a different amount than they expected. When consumers initiate the dispute process, the funds are refunded to the donor by the bank and automatically withdrawn from the merchant. The interceding bank or network attempts to collect evidence from both the consumer and the merchant to mediate and decide whether the charge should be reverse or stand.
Revv donations are subject to the same process as any other online merchant.
Unfortunately, many consumers choose not to contact the merchant for a refund or resolution before kicking off the dispute process or refuse to wait the normal time for a refund to process.
Revv actively works to keep the number of disputes as low as possible. Revv often provides evidence to challenge disputes that are likely to be resolved favorably.
If the dispute is "Lost" meaning the bank sided with the donor, you will see the charge appear as disputed in your account and you will be assessed a $15 fee. This fee is levied by the financial system and passed along to the organization.
How to minimize disputes:
The best way to prevent disputes is to be transparent with donors. Make sure that if a donation is recurring that your forms clearly explain that to your donors. Disputes from donors frequently occur because they did not realize or had simply forgotten that they had made a recurring donation.
Preventing disputes is important because banks will charge your organization a fee on top of the refunded donation. If your organization has a chargeback rate higher than 1%, you could incur even higher fees and/or have your Stripe account suspended.