Best Practices to Help Us Protect You Against Chargebacks

Article Summary: Explanation of how chargebacks work and tips to avoid these reports from clients.

What is a chargeback?

Clients (“cardholders”) obtain credit/debit cards from their issuing bank. A chargeback serves as a form of customer protection provided by the issuing bank that allows clients to file a complaint regarding alleged fraudulent transactions on their statement. After the client files a dispute, their issuing bank investigates the complaint.

NOTE: Clients can dispute transactions at any time and for any reason with their banks.

Does StyleSeat help me fight chargebacks?

Yes! If you feel a chargeback was reported incorrectly, and you should not be held liable, our Fraud team is here to support you. When we receive a chargeback from your customers financial institution, we will reach out to you via email to inform you of the report and partner together to gather evidence to send to the bank to fight the dispute.

If a client disputes a valid charge, providing additional evidence can help with understanding the dispute. Additional evidence may include:

  • Screenshots of text message/direct message/email communication with your client
  • Photos of your completed work (if applicable)
  • Any other form of documentation or explanation you can provide

How can I avoid chargebacks?

We have provided a few best practices to assist in reducing chargebacks or preventing the loss of a chargeback dispute:

  • Gather valid contact information on your client such as their legal name, email, and phone number.
  • Advise the client that they may see “Stripe, Ca” or some variation on their statement as it is StyleSeat’s payment processing partner.
  • To assist your client in recognizing the charges from their appointment, please advise the client that their bank statement may also include the following format: SS [your salon/shop name here]
  • Take before and after pictures of your client.
  • Advise the client that tips and appointment totals can be charged separately.
  • Make sure your client isn't being charged through StyleSeat when they shouldn't be.
  • If you have a No-Show/Late Cancellation policy:
  • If your salon/shop requires “Customer Intake Forms”, highlight the No-Show/Late Cancellation policy. (You can find templates for these via Google search.)
  • Save outgoing and incoming text messages, emails, and/or phone calls showing you reached out to them prior to charging them the No-Show/Late Cancellation fee or if your client cancels within 24 hours of their appointment start time.

NOTE: Attempt to proactively solve the issue with the client in order to avoid them going through their bank to get their money back. If the dispute is the result of the misunderstanding, the client can ask their bank to withdraw the dispute.

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Modified on Wed, 17 May 2023 at 02:48 PM