TABLE OF CONTENTS


What is a chargeback?

A chargeback occurs when a cardholder disputes a transaction on their credit or debit card statement, leading to a refund.


Chargeback Timeframe

  • Federal law allows chargebacks within 60 days of the billing date.
  • Some banks may offer longer periods based on their policies.


How Will I Know If a Chargeback Occurs?

  • Email Notification: PropertyBoss will notify you via email with chargeback details.
  • Bank Deduction: If you notice an unexpected deduction, a chargeback may have occurred before PropertyBoss receives notice. This process may take one business day.

What is the chargeback process?

  1. Transaction Occurs: A cardholder makes a payment using a debit or credit card.
  2. Cardholder Disputes Charge: They file a dispute with their bank.
  3. Chargeback Initiated: The bank temporarily credits the cardholder and contacts PropertyBoss.
  4. Funds Deducted: The disputed amount is withdrawn from your account.
  5. You Can Dispute: Provide supporting documents to challenge the chargeback.
  6. Bank Decision: 
    • If ruled against you, the cardholder keeps the refund.
    • If ruled in your favor, the cardholder is responsible for the payment, and funds are returned to you.

Handling Chargebacks in PropertyBoss

PropertyBoss recommends the following best practice steps. These are suggestions and should not preclude your operational policies.


If the Chargeback is for the Full Payment Amount

Example: A tenant disputes a $1,000 rent payment.

  1. Reverse the EFT payment on the register. 
    1. Use the chargeback or bank deduction date as the reversal date.
    2. Do not credit back the funds when prompted.
  2. Place the payment and reversal on a correcting batch.
  3. Close the batch.
  • If the chargeback is denied (ruled against you): No action needed.
  • If the chargeback is approved (ruled in your favor): 
    • Add a Tenant Payment (not electronic) for the disputed amount.
    • Use the chargeback win date or the bank credit date.
    • Place the payment on its own batch and close it.

 

 

If the Chargeback is for a Partial Payment

Example: A tenant disputes $600 of a $1,000 rent payment.

  1. Reverse the EFT payment for the full amount on the register.
    1. Use the chargeback or bank deduction date as the reversal date.
    2. Do not credit back the funds when prompted.
  2. Add a Tenant Payment (not electronic) for the remaining $400 that was not disputed.
    1. Use the original payment date for the remaining amount (e.g., August 1).
  3. Place the initial EFT payment and reversal on a correcting batch.
  4. Close the correcting batch.
  5. Place the Tenant Payment on a separate batch and close it.
  • If the chargeback is denied: No further action needed.
  • If the chargeback is approved:
    • Add a Tenant Payment (not electronic) for the disputed amount.
    • Use the chargeback win date or the bank credit date.
    • Place the disputed payment amount (ex: $600) on its own batch and close it.