What is a chargeback?
A chargeback results when a resident who previously made a payment using their credit/debit card contacts their card company and claims the payment is fraudulent. We do our best to prevent truly fraudulent transactions, but sometimes residents do not remember the payment they made and request a chargeback. Unfortunately, this will result in a fee for communities, as outlined in this help article.
In addition, a chargeback will result in the full value of the original charge being refunded to the cardholder, at the community's expense. This includes any transaction fees that were charged during the process.
Here is an example:
Let's say your community charged a resident $100 and received $97 after transaction fees were deducted. If the resident issues a chargeback via their credit card company, your community's payments balance will be reduced by the full $100, plus a chargeback fee will be deducted from the payments balance.