Chargebacks refer to the process of a customer disputing a charge that has been made on their account, claiming that they did not authorize it. Chargebacks can occur due to various reasons such as fraudulent activities, technical issues, or simply due to misunderstandings.
What A Customer Receives
Chargebacks are mailed to the customer's primary contact on the merchant account with the credit card processor. They wouldn't appear in One Church Software. Unfortunately, we don't know if one happens, and so there isn't a way for us to mark them in One Church Software automatically.
How to Process Chargebacks
You will need the Limited Write Contribution permission to perform this action.
Details of the chargeback are emailed to the merchant account holder, your church. The email includes details of the chargeback as well as the next steps.
Depending on the outcome, a manual transaction will need to be added as an adjustment, as appropriate (i.e. in cases where the resolution is not in the merchant’s favor).
An example:
The $20.19 original donation resulted in a chargeback due to insufficient funds. The manual addition of $-20.19 would need to be added to the Transactions section to indicate the chargeback. The donor and designation would be the same as the orginal, effectively nullifying the original donation
See How do I add contributions?
For accounting:
A chargeback is income that was taken back, so it should be categorized as a negative on the income account to which the original deposit was made. A chargeback fee is an expense, so it would be categorized as an expense.