This is a long article. If you have only one takeaway, know that we will help guide you through the process. This article is intended to help you understand the process, so you are armed with the information and can better explain it to your patient.

If a member has disputed a transaction with their bank, you're in for a good bit of "hurry up and wait". The dispute process can take upwards of 3 months to fully run its course, and is governed almost entirely by the member's bank handling the dispute. 

What is a dispute?
Seems like a silly question, but the specifics can be helpful to understand. If a cardmember encounters a transaction they don't recognize or don't agree with, they may contact their bank (the card issuer) and dispute the legitimacy of the transaction. At that point, the bank launches an investigation. See an example below:

Scenario

Your office collects $30 from John's Wells Fargo card for his monthly membership. John doesn't recognize the charge, so he contacts his credit card company, Wells Fargo, to dispute a $30 transaction.

The bank will ask him to provide a reason for the escalation. Some (but not all) options include (1) unsatisfied with the service received, (2) did not receive product/service, (3) duplicate billing, or (4) fraud.

When dispute is initiated...

• Wells Fargo communicates dispute to Stripe

• Stripe withdraws $30 from Office account (reversal)

• Stripe charges $15 "chargeback" fee to office account

• Stripe sends $30 to Wells Fargo to return to John

• Wells Fargo credits $30 back to John's account

• VisionHQ notifies Office that John has disputed transaction

• VisionHQ platform reflects dispute requiring response (red menubar flag)

• VisionHQ places John's membership into "disputed" status (cancelled)

Another scenario:  Office contacts John and John closes dispute with Wells Fargo

• Wells Fargo closes dispute (unknown time period)

• John's account is re-charged $30

• Office receives $30

• $15 chargeback fee is removed

***Stripe will sometimes require documentation confirming "rebilling" of fees before releasing funds back to Office****