Chargebacks can feel complicated, but they’re simply a way for donors to dispute transactions with their bank. Here’s a breakdown of what chargebacks are and what the common outcomes mean.
What is a Chargeback?
A chargeback happens when:
- 💳 A donor disputes a transaction with their bank or
- 🏦 An ACH donation initially processes, but the bank later returns the funds.
Dispute Process
- Chargebacks originate through the donor’s financial institution and follow the bank’s dispute process.
- A donor’s bank may also temporarily credit the funds back to the donor while it investigates the claim, but this doesn't mean the chargeback is resolved.
Chargebacks vs. Refunds
- ⚖️ Chargeback: Initiated through the donor’s bank or due to a returned ACH payment. The final outcome is determined by the bank.
- 🔄 Refund: Initiated through the Dashboard and processed by our payment processor.
This distinction helps explain why chargebacks follow a different resolution process and typically take 5–15 business days to finalize. (Statuses can change, even if a transaction was previously authorized.)
Chargeback Outcomes
Once the bank reviews the dispute and evidence, the chargeback will finalize with one of two outcomes:
- ✅ Chargeback Won: The bank accepted the evidence and returned the funds to your account.
- ❌ Chargeback Lost: Dispute was not upheld, and funds remain with the donor.
- The chargeback donation will appear in a deposit batch along with any applicable fees.
For additional insight, you can filter the Contributions table by status and review the history of a specific donation for dispute details.