Managing Disputes and Chargebacks in Yocale
A dispute (also called a chargeback) occurs when a client contacts their card issuer to reverse a charge. When this happens, the payment amount is immediately reversed, and a dispute fee is charged to your account.
Yocale, in partnership with Stripe, helps you manage disputes by guiding you through the resolution process.
Why Do Disputes Happen?
Common reasons include:
Fraud – The client claims they did not make or authorize the charge.
Returns – The client expected a refund but did not receive it.
Dissatisfaction – The client disputes due to poor service, pricing disagreements, or unmet expectations.
Unrecognized Charges – The business name on their card statement may be unfamiliar to them.
Disputes are meant to protect consumers but can be frustrating for businesses, especially when misused.
What Happens During a Dispute
Funds Held – When a dispute is filed, the disputed amount is deducted from your payout balance.
Notification – You will be notified by email. You have 4 business days to provide evidence if you choose to challenge the dispute.
Decision by the Bank – The client’s bank reviews the evidence and makes a final ruling.
If you win: Funds are returned to you (including any counter-dispute fee).
If you lose: The funds remain with the client, and your account balance is reduced accordingly.
⚠️ The full dispute lifecycle can take 2–3 months for the bank to resolve.
Your Options When Facing a Dispute
You can have the option to see the dispute in 2 ways:
If you go to the Payment > Payment record. All business payment record you will see an alert on the payment it means there is a dispute on this payment you can open the payment to see the status of dispute.
The other option is to go to Payment > Payout and dispute and review the dispute record in detail. In here you have the option to respond to a dispute.
Option 1: Contact the client
Reach out to your client directly — sometimes disputes are errors or misunderstandings. If the client agrees to cancel (withdraw) the dispute, they must call their bank to drop it.
Option 2: Challenge the dispute
Submit supporting documentation within 4 business days.
Evidence may include:
Signed contracts, receipts, or agreements.
Email or text communication with the client.
Photos, videos, or service performed proof.
Appointment reminders or policies stored in Yocale.
A written statement explaining the situation.
The stronger and more specific your evidence, the better your chances of winning.
Option 3: Accept the dispute
If you choose not to challenge you can accept the dispute. In this case do not issue a manual refund — The payment provider will handle this for you and the funds will remain with the client.
After challenging a dispute
If the bank rules in your favour: The transaction stands, and the funds are returned to you.
If the bank rules against you, the disputed funds are permanently returned to the client.
If your payout balance cannot cover the refund, your account may temporarily show a negative balance until new payments offset it.
Can I Avoid the Dispute Fee by Refunding?
Once a dispute is initiated, the dispute fee cannot be avoided.
However, if you issue a full refund before a dispute is filed, the client cannot open a dispute later for that payment.
Best Practices to Prevent Disputes
Make cancellation and refund policies clear and visible in your booking and payment terms.
Add your policies in your online payment settings and ask the client to agree to policies before booking or payment.
Process refunds quickly if agreed upon.
Require signatures or ID checks for large transactions.
Keep documentation — receipts, communication records, and service confirmations — in case you need them later.
Use a recognizable business name for your card processing to reduce confusion on client statements.
Proactively address client dissatisfaction before it escalates.