About Chargebacks

What is a chargeback?

A chargeback happens when your customer disputes a card payment with their bank instead of coming to you first. As soon as the dispute is filed, the customer's bank pulls the funds back immediately — before anyone has reviewed whether the dispute is valid. You'll see this show up on the invoice as a Chargeback line item.

A chargeback is different from a refund. A refund is something you choose to issue. A chargeback is the bank taking the money back on its own, whether or not you agree with the dispute.

Why do disputes happen?

The most common reason by far is that the customer didn't recognize the charge on their statement — not that they're trying to avoid paying you. A charge from an unfamiliar business name, a delayed billing description, or simply forgetting they paid you can all trigger a dispute.

Because of this, the fastest way to resolve a dispute is often the simplest: contact your customer directly, explain the charge, and ask them to withdraw the dispute with their bank. Most banks let cardholders cancel a dispute once they confirm the charge is legitimate — and that's usually quicker than waiting on the formal review process.

Why did the money disappear right away?

Card networks are built to protect the cardholder first and ask questions later. When a customer disputes a charge, their bank reverses it immediately — before the dispute is decided one way or the other. That's why the invoice balance jumps back to "amount due" the same day the dispute is filed, not after some review period.

Can I issue a refund?

No — there's nothing left to refund. The funds are already back with your customer the moment the dispute is filed, so a refund on that payment isn't possible.

Can I still get paid?

Yes. If you'd still like to collect payment for the work, you can take payment from your customer another way — cash, check, a different card, Venmo, etc. — using Add Payment or Refund on the invoice. This doesn't affect the dispute in any way.

One thing to keep in mind: if you collect payment another way and later win the dispute, you'll end up paid twice for the same invoice. If that happens, refund your customer for the extra payment.

Is there a fee for a chargeback?

Yes. ProPay charges a $25 chargeback fee any time a payment is disputed, regardless of how the dispute is resolved — even if you ultimately win. This fee covers the cost of processing the dispute itself, separate from the disputed amount. See the full breakdown in About Tap Inspect Payments.

What happens when the dispute is resolved?

Your dispute will be reviewed and resolved by the card network — this can take up to 90 days. There are two outcomes:

• You win the dispute: the funds are returned to you, and the invoice will show as paid again.
• You lose the dispute: the chargeback stands, and the invoice stays at "amount due" unless you've already collected payment another way.

How do I contest a chargeback?

Step 1: Contact your customer. Since most disputes come from a charge the customer simply didn't recognize, reach out and explain what the charge was for. If they agree it's legitimate, ask them to call their bank and withdraw the dispute — this is usually the fastest resolution available.

Step 2: If they won't withdraw it, ask us to submit the dispute on your behalf. We can contest the chargeback for you using the signed agreement, the completed report, and proof the customer received it. Under our privacy policy, we need your explicit permission before sharing that information — so this isn't something we do automatically. Contact support to request it, and we'll take it from there.