Client Initiated a Chargeback (Dispute)

If a client disputes a payment made through Healthie, it's important to understand how the chargeback process works and what steps you can take to respond. This guide outlines how chargebacks are handled, what actions are required from you as a provider, and how Healthie supports you through the process.

Understanding Client-Initiated Chargebacks

A chargeback occurs when a client disputes a charge directly with their bank, claiming the payment is invalid. The dispute is handled between banks, so neither Healthie nor Stripe can influence the outcome. However, we can help you navigate the process by submitting evidence on your behalf, displaying dispute data, and tracking status.

When a client initiates a chargeback, you can submit evidence to support the charge's validity. If you don't respond or lose the dispute, the payment will be reversed and deducted from your future transfers.

Common reasons clients initiate a chargeback include:

• Client doesn't recognize the charge and reports it as fraud (Note: Healthie charges display your business name and/or package name)
• Client claims they didn't receive services
• Client believes they canceled and the charge is unauthorized

Notification of a Client-Initiated Dispute

To ensure you're notified of client-initiated chargebacks (disputes), please ensure the following settings are enabled:

1. Permission for Failed Payment Notifications must be turned on.
2. Email notifications for failed payments must be enabled in your personal notification settings.

Additionally, if you want to receive updates on the outcome of a dispute, you’ll need to have a specific permission enabled in your provider profile. If this permission isn’t turned on, you won’t receive the notification.

If you don’t have access to update this setting, an account owner or admin can make the change on your behalf.

For step-by-step instructions, refer to this guide:

[Deep Dive: Team Member Permissions]

If your client initiates a chargeback for a payment processed via Healthie, you will receive an e-mail notification with the next steps that you will need to take. 

Track and View Disputes within Healthie

When a client initiates a dispute, Stripe will pull in the dispute information on the backend, and Healthie will display it within your Payments > Disputes tab. Information displayed includes:

• Client name
• Provider associated with the chargeback
• Invoice ID (if an invoice was created in relation to this payment)
• Dispute amount
• Dispute reason
• Dispute status

Options for Managing a Dispute

Once disputed, you cannot refund the charge directly. You must either accept the chargeback or submit evidence to contest it.

When a charge is disputed, you have three options:

1. Accept the chargeback: If you accept the chargeback, reply to the chargeback email letting us know, so that we can let your bank know.
   • Our payment processor will withdraw the charge amount, plus the chargeback fee of $15 per transaction, from your bank account.
2. Contact your client to withdraw the chargeback: If you believe this is confusion on your client's part, reach out to your client to call their bank to withdraw the chargeback, and reply to the chargeback email with written evidence that it is withdrawn.
   • Once a dispute has been initiated, it is best to have your client contact their bank and cancel the dispute on their end, rather than having you run an additional, new charge.
3. Submit evidence: Reply to the chargeback email with evidence of services provided:
   • Confirm the client ID
   • Attach compelling evidence (see categories below)
   • Time limit: Usually 7–21 days to respond. If you don't submit evidence by the deadline, the cardholder wins automatically.
   • Healthie will submit this on your behalf to the client's bank. You'll see funds withdrawn (minus $15 fee) during review, then returned if you win.

We'll need a response from you on how to proceed, and will send you a reminder if needed. If you don't respond, the client automatically wins and retains the disputed amount.

Recommended Evidence to Contest the Chargeback

If you choose to dispute the chargeback, you will need to submit evidence to Healthie. This can be done by replying directly to the chargeback email notification.

You can submit files for multiple categories, BUT only one file per category. Label each file with the correct category name. If you have multiple documents for any single category, you'll need to combine them into one PDF for that category.

• Customer Communication - Any correspondence between you and the client related to the transaction. If you have multiple emails, texts, or calls, combine them all into one PDF in chronological order.
• Customer Signature - Signed policies and agreements (Cancellation/no-show, financial agreement, consent for services). If you have multiple signed documents, merge them into one PDF.
• Duplicate Charge Documentation - If a duplicate charge occurred and was already refunded, provide proof or proof that the disputed charge is not a duplicate transaction.
• Receipt - Payment confirmation for the charge.
• Refund and Cancellation Policy - Your organization's policy for refunds and cancellations.
• Service Documentation - Proof that services were provided such as screenshots of upcoming, past or no-show/canceled appointments from their client overview, charting notes with health info redacted, and screenshots of program progress. If you have multiple screenshots or documents, combine them all into one PDF.
• Shipping Documentation - Tracking details, delivery confirmations, or shipping receipts if a physical product was involved. If you have multiple shipping documents, merge them into one PDF.
• Terms Disclosure - Any terms and conditions the client agreed to regarding the purchase.
• Other - Any additional supporting evidence that does not fit in the above categories. If you have multiple miscellaneous documents, combine them into one PDF.

To help you resolve this dispute quickly and efficiently, we recommend you provide us with information.

Chargeback Resolutions

There are a few resolutions possible once a chargeback has been initiated:

• Dispute won: If you have submitted evidence and win a dispute (the bank has ruled in your favor) you will receive a deposit with the amount of dispute
• Dispute lost: If you have submitted evidence and you do not win a dispute (the bank has not ruled in your favor) money will not be returned to your account
• Dispute partially won: Sometimes the bank returns only part of the disputed amount to you. This may be because 1) they believe the cardholder is entitled to part of the amount, 2) they are accounting for a previous refund you made on the payment, or 3) if the credit card is in a different currency than the charge, exchange rates may have fluctuated during the review period. If this is the case, you will receive the partial payment deposited into your account, and you will see this transaction as expected as a deposit in your bank account.

You'll be notified via email of the dispute status, and you'll also be able to track the dispute within your Payments > Disputes dashboard.

Stripe's Policy on Dispute Fees

When a client initiates a chargeback, Stripe automatically charges a $15 dispute fee. This adjustment is made to cover the costs incurred by Stripe in managing disputes. As Healthie integrates with Stripe as our payment processor, Healthie customers incur any Stripe fees.

Regardless of a dispute outcome (won or lost) the $15 dispute fee will not be returned. This pricing policy change went into effect September 15, 2023 (please refer to Stripe documentation here).