What is a Chargeback?

A chargeback happens when a student disputes a payment with their bank or credit card company. The student’s financial institution withdraws the disputed amount from your account and holds it until the issue is resolved.

This is different from a refund, which is when you (the seller) choose to return the funds.

Student access: When a chargeback is issued, the student is automatically unenrolled from your Teachable course and any associated subscriptions are cancelled.

Why Do Chargebacks Happen?

Chargebacks can happen for a few reasons:

• Unrecognised Charges - The student doesn’t recognise or remember the charge on their statement, so they report it to their bank or credit card company.

• Fraudulent Charges - The student claims that the transaction was unauthorised.

• Product Dissatisfaction - The student is unhappy with the course and skips requesting a refund, going straight to their bank instead.

• Technical Issues - Problems like not being able to access the course can lead to frustration and chargebacks.

What To Do If You Receive a Chargeback

Receiving a chargeback can be stressful. But here are steps you can take to manage the situation effectively and potentially reverse the chargeback.

1. Review the Chargeback Notification - When a chargeback is initiated, Teachable sends you an email notification if the payment was processed through Teachable’s payment gateway. This email will inslude a link with details about the transaction, including the student’s name and the amount disputed.

2. Contact the Student - Reach out to the student directly. Often, chargebacks stem from misunderstandings that can be resolved with clear communication. Ask them about their concerns and try to find a solution. This can sometimes lead to the student withdrawing the chargeback.

3. Dispute the Chargeback (Optional) - If you believe the chargeback is unwarranted, you have the option to dispute it. Gather any relevant information, like proof of delivery, communication records, and your refund policy. Submit these through Teachable’s chargeback dispute form. Keep in mind that disputing a chargeback doesn’t guarantee you’ll win, and the process can take some time.

4. Keep Records - Maintain all communications and transaction details related to the chargeback. This documentation can be crucial in any dispute.

Common Reasons to Dispute a Chargeback

Disputing a chargeback doesn't guarantee you'll win, but sometimes students can initiate chargebacks unfairly, meaning a dispute is warranted. For example:

• The customer purchased and used the product.
  If the student has used your course, it shows they received access. This could make their complaint less valid if they've claimed it was a fraudulant or unrecognised transaction. Provide records showing the student logged in, completed lessons, or submitted assignments.

• The customer requested a refund outside the refund window.
  If your refund policy says when students can ask for refunds and they asked after this period, it could show they knew the rules but didn’t follow them. Show your refund policy and the date they asked for a refund.

• The customer dropped the dispute.
  If the student agrees to cancel the chargeback after talking with you, it means the problem is solved and they don't want to continue with the dispute. Get this in writing from the student, like an email or any other written message.

• The customer has already been refunded.
  If you already gave the student their money back, their claim isn’t valid because they’ve already received a refund. Provide proof of the refund, including the date, amount, and confirmation from your payment processor (i.e. Teachable).

And remember, there are deadlines for responding to chargebacks. So, make sure you act quickly if you're going to submit a dispute.