What is a ‘Chargeback’?

A ‘chargeback’ occurs whenever an invoice charged via a checking account is contested by either the member or it is rejected by their bank. If it is the member contesting, it is because they are disputing the validity of a charge.

If the bank rejected the transaction, this caused by insufficient funds or a closed/incorrect account.

The PT Transactions report will detail the reason that an invoice was declined and would be the best place to reference for details about specific charges.

Note: ‘Chargeback’ applies strictly to invoices that are funded through credit/debit card.

Applying a ‘Chargeback’

During a ‘chargeback’, the billing status of that Member’s agreement gets switched to ‘Inactive’. This prevents further invoices from generating.

Removing a 'Chargeback’

If, later, the ‘chargeback’ is revoked and the invoice is paid, the agreement’s billing status will then be switched back to ‘Active’. Any previously suspended invoice left in the package will now regenerate. As a result, the first suspended invoice to immediately follow the previously ‘chargeback’-ed invoice will auto-bill the day after its regeneration. If a second suspended invoice exists, it will auto-bill two days after its regeneration. If a third exists, it will auto-bill after three days. (This logic applies to all remaining, previously suspended invoices.)

Note: Any agreement with a ‘chargeback’ invoice paid prior to July 8th, 2016 will still possess an ‘Inactive’ billing status. Need an earlier agreement’s billing status set back to ‘Active’? Please contact our support team.