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Contest a Credit Card Chargeback

Tenant payments made via credit card can later be disputed and have chargebacks issued, these disputes must be contested in a timely manner.

Charlie avatar
Written by Charlie
Updated over a month ago

šŸ’³ What is a Chargeback?

A chargeback is when a tenant’s credit card payment is reversed by their bank. This typically happens when the cardholder claims:

  • The charge was unauthorized

  • They didn’t receive the product/service

  • They were due a refund that wasn’t issued

The bank pulls the funds back from your account and opens a dispute.

āš ļø ACH Return vs. Credit Card Chargeback

Unlike credit card chargebacks, ACH returns can’t be disputed and are fully controlled by the tenant’s bank. If a tenant's ACH payment is returned (e.g. due to insufficient funds or closed account), it’s final.

šŸ“ Common Chargeback Reasons

The Federal Trade Commission and other regulatory bodies mandate a fair amount of protection to consumers using credit cards. Among other protections, cardholders have the right to accurate billing, protection from unauthorized charges, and the right to dispute charges for goods or services that are different from those described. In addition to regulatory protections, different banks and credit card issuers may provide additional rights and/or protections.

Most often, card issuers will issue chargebacks for one of the following reasons:

  • Fraud or unauthorized use — The Card was used without the cardholder's authorization

  • Goods or services were not as described — Goods or services provided were materially different from they were described or agreed to

  • Goods or services not delivered — Paid for an item or service that was never received or provided

  • Return credit not processed — Item returned or canceled a service within a merchant’s policy, and never received credit

  • A recurring billing was not stopped — A subscription service continued to be billed after it was canceled

  • Incorrect amount — The amount charged was incorrect

Generally, chargeback abilities are limited to 120 days from the transaction date, but some institutions will consider disputes further back. The validity of a chargeback is at the sole discretion of the issuing bank.

šŸ›  How to Contest a Chargeback

If a tenant disputes a payment:

  1. You’ll receive an email from RentRedi with the dispute details.

  2. The disputed amount will be withdrawn from your payout balance.

  3. You can submit evidence to contest the chargeback within 30 days.

šŸ” To submit evidence

  1. On your RentRedi dashboard, click the three-line menu at the top left

  2. Click Rent

  3. Click Payment Accounts

  4. Click Open dashboard on your payment account

  5. Click Reports, then click Transaction Reports

  6. Click Disputes

  7. You will see the disputed payment having an "Action Required" status

  8. Click the payment

  9. Submit any relevant evidence that the charge was valid (i.e., Lease, utility charge, etc.)

RentRedi’s payment processor will review and submit the evidence you’ve provided as part of the dispute process. Please note that the final decision rests solely with the issuing bank.

🧾 Timelines and Expectations

The typical process of a credit card dispute is as follows

  1. Payee contacts their bank and disputes a charge (generally limited to 120 days from the transaction date)

  2. RentRedi will alert the account owner via email of the dispute within 1 business day

  3. Funds are returned to the payee and withdrawn from the merchant, plus a $15 chargeback fee

  4. Merchant contests the dispute (must be done within 30 days of the dispute)

  5. The issuing bank makes a final decision on the dispute after considering the evidence (the review process can take up to 60 days)

  6. The dispute is closed -- If the issuing bank decides in favor of the merchant, funds and the chargeback fee are returned

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