Understanding Disputes in PbN Payments

When you use a payment system like PbN Payments, it's essential to understand what a "dispute" is and how it works. A dispute happens when a customer (or patient) questions a payment and asks their bank to reverse the transaction. This process is known as a "chargeback."

Types of Disputes

Disputes can arise for several reasons, including:

• Fraud: The cardholder claims that the transaction was unauthorized.
• Consumer Disputes: The customer is unhappy with the product or service received.
• Processing Errors: Mistakes in handling the transaction, such as being charged twice.
• Authorization Issues: The transaction was not properly authorized.

The type of payment method used can affect whether a dispute can occur. For example, credit card payments can be challenged, while bank transfers typically cannot.

Key Terms

• Issuer: The bank or financial institution that issued the customer's card.
• Chargeback: The process of returning the payment to the customer after a successful dispute.
• Reverse Chargeback: The money is returned to them if the merchant successfully defends against the chargeback.

The Dispute Process

When a patient disputes a charge, the dispute goes through several stages:

1. Notification of Fraud (Optional): PbN Payments might notify you of potential fraud before a chargeback happens. This early warning allows you to act, such as issuing a refund to avoid a chargeback or blocking the customer.

2. Request for Information (Optional): The customer's bank may ask for more details about the transaction. This is not yet a chargeback, but it could lead to one if you don't respond in time.

3. Notification of Chargeback: The customer's bank initiates a chargeback. You can defend against this by providing evidence that the charge was legitimate.

Defending Against a Chargeback

If you want to contest a chargeback, you'll need to submit documents proving that the transaction was valid. If the evidence is accepted, the money will be returned to your account, and the dispute will end.

However, if the bank rejects your defense, the dispute can escalate:

1. 1st Chargeback: The money is withdrawn from your account. If you don't defend, or if your defense is weak, this stage may end the dispute.

2. Information Supplied: Your defense documents are reviewed by the bank.

3. Chargeback Reversed: If your defense is accepted, the money is returned to you.

4. Pre-arbitration (for some cards): If the bank doesn't accept your defense, they may escalate the dispute further.

5. 2nd Chargeback: In the final stage, the bank can issue a second chargeback, which you cannot contest. This concludes the dispute process.

Understanding these steps can help you manage disputes more effectively and protect your business's revenue.