Chargebacks occur when a cardholder disputes a charge with their financial institution (such as a bank or credit card provider). This institution will investigate whether the cardholder (e.g., an attendee) should receive a refund. The bank’s first step is to request additional information from the merchant. When using N’joy’s payment processing, N’joy acts as the merchant, meaning we handle chargebacks on your behalf. Once the bank has reviewed the documentation provided by both the cardholder and the merchant (a process that can take up to 120 days), it will decide whether a refund is warranted. You can reduce the risk of chargebacks by establishing a clear refund policy and responding promptly to refund requests.
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How do chargebacks happen?
To initiate a chargeback, cardholders dispute a charge with their bank or credit card provider. The most common reasons for disputing a charge include:
- Not receiving the advertised services.
- Being promised a refund that was not received.
- Not recognizing the charge.
Important: Chargebacks can occur even if an event has a "No refunds" policy and are especially likely if the event is canceled without offering a refund or credit.
What happens when a cardholder initiates a chargeback for one of my events?
While no payment system can guarantee the absence of chargebacks, N’joy has a higher than industry average success rate in winning disputes, thanks to a specialized team that handles chargebacks. This saves time and potentially reduces your losses. It’s important to note that N’joy is not obligated to dispute chargebacks that we believe are likely to be lost, or that should be refunded according to your refund policy or N’joy’s Organizer Refund Policy Requirements.
In some cases, N’joy may contact you to request additional information to help dispute the chargeback on your behalf. Our success in these disputes improves when event creators follow best practices and respond quickly to our requests. We will use the information you provide, along with the details of your event, to dispute the chargeback, including:
- Proof that the order was legitimate.
- Proof that the attendee was at the event.
- Your event's refund policy.
Once the bank reviews the documentation from both the cardholder and the merchant (a process that can take up to 120 days), it will decide whether a refund is warranted. If the bank rules in favor of the merchant, no further action is required and the order is not refunded. If the bank rules in favor of the cardholder, it will issue a refund and the total order amount will be charged to your account, minus N’joy’s service fee and payment processing fee.
When the bank decides to refund the charge, N’joy sends an email to the address on your account. Here are the steps to follow:
- If the event has not yet occurred, ensure that you scan the tickets or credit attendees by ID. Refunded tickets are not valid for your event. If the attendee wants to use their ticket, they must purchase a new one. There is no way to reverse a refund.
- If the event has already occurred, you will see a charge in the charges and credits section of your Finance workspace. The charge will be for the net sales of the order only. N’joy waives all service and processing fees and covers any bank fees.
- The charge will be applied to your next payout. If no payouts are scheduled before the end of the month, the charge will be invoiced to your account. Learn more about viewing and paying invoices.
How can I reduce the risk of chargebacks?
While you can’t completely prevent chargebacks, you can reduce their risk by following these steps:
- Clarify expectations: Make sure attendees know what to expect from the event, including accurate details on the event page and establishing a refund policy. If event details change, communicate the changes and options to attendees as soon as possible. Issue necessary refunds through N’joy to keep a record and provide proof in case of chargebacks.
- Respond promptly to refund requests: Respond to all requests within two business days to reduce the likelihood of chargebacks. If you decide to deny a refund request outside your policy, consider offering an alternative solution, such as a discount or credit for a future event, and document any agreement.
- Use a regularly monitored email address: Ensure that the primary email address on your N’joy account is one you check regularly so you don’t miss important notifications about refund requests and chargebacks.