A chargeback is when a client disputes a card payment with their bank, and an ACH return is when a bank transfer is reversed. For a card chargeback, select Respond in the Chargebacks report and submit your evidence. For an ACH return, message the Handoff team in the in-app chat.
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What a chargeback and an ACH return are
A payment reversal happens when a client's bank pulls money back after a payment was made. The name depends on how the client paid.
Card payments: a reversal is called a chargeback. The client disputes the payment with their card issuer, sometimes months later.
Bank (ACH) payments: a reversal is called an ACH return, for example when the account has insufficient funds or the client says the payment was not authorized.
Reversals are uncommon. While a card chargeback is open, the disputed amount is held back from you until the bank decides.
Where to see and respond to a chargeback
Handoff does not notify you when a chargeback is filed, so check the report if you suspect one. The Handoff team may also contact you.
Select Settings > Finance & payments > Chargebacks. The page is titled Disputes.
Find the chargeback in the list.
Select Respond.
Follow the steps that appear to add your evidence and submit your response.
The response form is part of our payment partner's screen. The steps and labels there can differ from the ones here. The Chargebacks row appears only after payments are active.
How to prepare evidence for a chargeback
The bank decides the case from your evidence, so gather it before you respond. Show that the client agreed to the work and that you did it.
Agreement: the signed proposal or contract, or an approved change order.
Billing: the itemized invoice and any payment receipt.
Proof of work: photos, signed completion forms or delivery confirmations.
Communication: texts or emails about the work or the payment.
Respond as soon as you can. Chargebacks have response deadlines set by the bank, and a missed deadline can mean you lose the dispute.
On unusually large payments, consider waiting until the work is signed off before spending the funds.
What to do about an ACH return
Handoff has no in-app response for ACH returns. Message the Handoff team in the in-app chat as soon as you learn of one, and we will explain what happened and your options. The invoice list can show a Failed status on a payment that did not complete.
Accounts that still use Stripe
If Finance & payments shows a Stripe Connect (Legacy) section, your account took payments through Stripe. For a dispute on one of those payments, message the Handoff team in the in-app chat and send your documents there.