A chargeback occurs when a patient disputes a card payment made to you and requests a refund from their bank or card issuer.
Chargebacks usually happen when:
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The patient does not recognise the charge described in their bank statement, or
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The patient mistakenly believes a fraudulent payment was made when you charged their card.
When this happens, you receive a notification from email from Halaxy.
This article details what happens in a chargeback, why you were charged, and what you can do to resolve it and get your funds back.
Important
This process is controlled externally by financial institutions - such as Visa, Mastercard and American Express - and is beyond Halaxy’s control. Any payment provider using these card services are subject to the same process. For more information, please see our terms of service.
Click the arrows to view the entire chargeback process step by step.
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1. Your patient disputes the charge with their card issuer.
The chargeback process begins when the patient requests a refund for their card payment made to you. If it is their bank's policy, the patient may be refunded immediately.
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2. The bank charges the full disputed amount to Halaxy - not you.
This means Halaxy is now out of pocket because of the patient's payment dispute.
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3. Halaxy recovers the amount from you until the chargeback is resolved.
To recoup the funds, Halaxy charges you the amount through your stored credit card and notifies you of the chargeback.
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4. To recover your funds, you have the following options:
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Request your patient to withdraw the chargeback (recommended): Speak to the patient to clarify the issue, and if appropriate, get them to withdraw the dispute with their bank. If the patient withdraws the chargeback and the bank confirms and accepts the withdrawal, the funds are returned to Halaxy, notified via official communication channels. Halaxy then returns the funds to you. This is the quickest way to recover your funds.
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Submit evidence to prove the charge was valid: The bank allows time for you to submit evidence to prove the card payment was valid. You must provide this evidence to Halaxy within 14 days of notification, which may include:
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Copy of the invoice
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SMS payment authorisation from the patient
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Any terms and conditions the patient agreed to
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Caution
All banks have their own policies and protocols for chargebacks, some of which may never result in a reversal of the dispute. See our tips on how to protect your practice from chargebacks.
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5. The card issuer decides if the chargeback is valid or not.
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If the chargeback is won or the patient withdraws their dispute, Halaxy returns the funds to you.
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If the chargeback is lost, the patient is refunded by their card issuer, and you are charged an additional $30 penalty by the card issuer.
Note
The card issuer may take up to 90 days to determine the outcome of the chargeback.
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The card issuer processes the chargeback at the request of your patient.
If the patient requests to withdraw their dispute within a reasonable time frame, the card issuer may potentially withdraw it. Halaxy has no control over this chargeback process as it is handled externally.
Speak to the patient to clarify the issue, and if appropriate, get them to withdraw the dispute with their bank. However, until we receive confirmation from the bank from the official channels that the chargeback is won (i.e. the dispute is withdrawn), the funds will not be returned.
As soon as Halaxy receives notification from the card issuer from their official communication channels, we will return the funds.
The best way to protect your practice from chargebacks is to ensure your patients know what you are charging for and properly authorise payments. Halaxy offers a variety of features to protect your practice:
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Use payment limits and SMS authorisation to ensure all charges are authorised by patients.
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Customise your statement descriptor to a label that your patient will recognise on their bank statements, such as your name or practice name.
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Require consent to your practice's terms and conditions, such as your cancellation policies.
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Require upfront payment from patients when they book appointments.
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Obtain signed consent forms to authorise the practice to charge the customer's card for appointments and/or cancellations.
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Use two-way appointment reminders to gain confirmation from patients before appointments.
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