Assisting with Chargebacks & Returned E-Checks (Centerbase Payments)

When dealing with chargebacks and returned e-checks, the following steps are crucial for maintaining accurate financial records and responding appropriately:

1. Refunding the FBO Account

To ensure the amount disbursed matches the transactions since the last disbursement, the first step is to restore the FBO to its pre-chargeback or pre-returned-check levels.

• How to Refund the FBO:
  • In the Merchant Portal, navigate to Withdrawals > Schedule Withdrawal > Advanced Options.
  • Fill out the form with these settings:
    • How Often Would you Like to Withdraw: One Time
    • Amount Type: Actual
    • Amount: Enter the amount of the chargeback or returned check
    • Bank Account to Deposit Withdrawal: Select the account from which the funds will be drawn
  • Ensure to check the "Debit" box at the bottom of the form. If unchecked, the funds will move out of the FBO to the bank account selected instead of being added to it.

The adjustment will take effect on the next business day, allowing disbursements to trust accounts to accurately reflect the original transactions, thereby avoiding any issues with co-mingling of funds.

2. Responding to a Chargeback

Once the financial adjustments are made, it's important to address the dispute through the Merchant Portal.

• How to Respond to the Chargeback:
  • Navigate to Disputes in the Merchant Portal.
  • You will have two options for responding to the dispute:
    • Accept Liability: Choose this option if you wish to voluntarily concede to the dispute.
    • Provide Evidence: If you believe the transaction was valid, respond to the issuing bank with compelling evidence to support the legitimacy of the transaction.

This structured approach helps ensure that your firm handles financial disputes efficiently and maintains compliance with financial standards.

After addressing the initial financial adjustments, it's essential to manage the chargeback through the Merchant Portal effectively.

Procedure for Chargeback Response:

• Access the Disputes section within the Merchant Portal.
  • You will be presented with two main options for handling the dispute:
    • Accept Liability: If appropriate, you can choose to accept responsibility for the dispute voluntarily. This is generally selected when the merchant acknowledges an error or when it is strategically more feasible to accept the chargeback.
    • Provide Evidence: If you believe the charge was legitimate, you can respond to the chargeback by submitting compelling evidence to the issuing bank. This evidence should validate the transaction and support your case against the chargeback.

This process ensures that your response to chargebacks is handled promptly and efficiently, maintaining the integrity of your financial practices and ensuring that every transaction disbursed to the trust account aligns perfectly with the actual transactions, thereby preventing any potential issues of co-mingling funds.