A chargeback is when a customer contacts their financial institution to dispute a credit card or bank account transaction.
When this occurs with a member's payment, LegFi is notified by Stripe and a payment reversal with the status "Pending" will be recorded on the member's account. An email is sent to the member as well as all the Organization's Admins.
In some cases, we will have the ability to provide documentation to prove a credit card charge was valid.
After review, we will receive a status from Stripe letting us know the dispute was won or lost.
If won:
- a payment is applied to the member's account
- the reversal status is updated to "Won"
- the Organization is charged a $5 Chargeback Fee
- an email is sent to the member and the Organization's Admins
If lost:
- the payment reversal status is update to "Lost"
- the Organization is charged a $50 Chargeback Fee
- an email is sent to the member and the Organizations Admins