Question:

• What do I do when a Client challenges a payment?
• What happens when a Client does a chargeback?
• How do I settle Credit Card Disputes?

Environment:

• Clio Manage

Additional Information:

• A dispute is when a lawyer's client formally challenges a charge on their card or bank account with their bank. Merchants (ie. law firms) are notified when a dispute is filed and then they'll have a limited time to respond to or challenge the dispute (eCheck disputes/reversals cannot be challenged). 

Procedure:

Dispute Resolution Process for Credit Cards:

When a client disputes a credit card charge, law firms will be informed by Clio via email. Only administrators and the primary subscriber would receive these emails. The firm is also charged a $15 fee for the chargeback. 

The email will include a "Respond to dispute" button that takes firms to a page where they can begin the process of responding to the dispute. Everything has been designed to be as self-serve as possible so it's easy and fast for law firms to respond.

 

Dispute Resolution Process for eCheck (ACH):

Since eCheck reversals (or disputes) cannot be challenged by the merchant, this means that law firms will have to directly contact their client to attempt to resolve the issue.

The funds will be taken from the merchant’s operating account right away by the bank and a new transaction showing the funds being removed will have a Chargeback label.