How to Respond to a Dispute With Kajabi Payments

Have you received a dispute? Learn to respond to and counter disputes with Kajabi Payments.

Note:

Kajabi Payments is currently only available to Kajabi Heroes whose businesses are registered in the US, Canada, Australia, the United Kingdom, and select European countries.

How do I know if I have a dispute through Kajabi Payments?

If a customer files a dispute, a banner will appear on your Payments Overview page, notifying you that you have a dispute that requires action. You can also view all of your disputes, no matter their status, on the Disputes Page. Learn more.

To view disputes that require action:

From your Kajabi Dashboard, navigate to Payments.
On the Payments page, select the Disputes tab.

When a new dispute is filed, you’ll also receive an email from payments.risk@kajabi.com with dispute details. The disputed amount, plus the associated dispute fee will be withdrawn from your Kajabi Payments balance. If your balance does not have sufficient funds to cover the fee and the disputed amount, funds may be pulled from your connected bank account. However, you may get the disputed amount back if you end up winning the dispute.

In the dispute process, the burden of proof is placed on you to prove that the disputed charge is a valid transaction. This is industry standard and is not specific to Kajabi Payments.

How do I respond to a dispute?

When a customer files a dispute, Kajabi relays information between you and the cardholder’s issuing bank filing the dispute. The final decision on the dispute is determined by the issuing bank.

Steps to respond to a dispute.

Review the dispute details on the Transaction detail page.
If possible, reach out to the customer to attempt to rectify the issue.
In any dispute situation, Kajabi recommends revoking access to any purchased content while the dispute is ongoing.

Learn how to revoke a customer's product access.

When to accept a dispute:

You should accept a dispute if:

The dispute is a case of Legitimate Fraud—where it does appear that a compromised payment method was used, we recommend that you do not fight these disputes. Instead, accept it and revoke access to the product purchased so the fraudster does not continue to have free access to whatever they purchased. Kajabi Payments employs various tools and strategies to help protect merchants from fraudulent transactions.
The customer was owed a refund that was never processed . Goods or services were not provided to completion or were not provided to the standards set out at the time of purchase.

To accept a dispute:

From your Kajabi Dashboard, navigate to Payments.
Select the Disputes tab.
Click on the disputed amount that you want to respond to.
Choose to Respond to dispute.
In the response modal, select Accept dispute.

When to counter a dispute:

You should counter a dispute if:

You have reason to believe the rightful cardholder is accessing the content purchased and is trying to obtain goods/services for free
A customer claims that they haven’t received a good or service, but you have evidence it has been delivered and content has been consumed.
A customer claims they were billed erroneously, but you have evidence that they purchased multiple unique products/offers in quick succession
A customer claims to have canceled a subscription or service in accordance with your Terms of Service, but they continue to access content after the cancelation date

How do I counter a dispute?

To counter a dispute:

From your Kajabi Dashboard, navigate to Payments.
Select the Disputes tab.
Click on the disputed amount that you want to counter.
Choose to Respond to dispute.
In the response modal, select Counter dispute.
Select the primary reason you believe the issuing bank should overturn the dispute.
Include details about the product or service involved in the dispute.
Select the type of product or service that is being disputed.

The following are examples of evidence that you may want to include in your counter dispute:

Written communications with the customer (via email, social media, chat function, etc)
If delivering goods/services electronically, proof that it was delivered to the rightful customer.
Access logs of the customer consuming your content. Upon your written request, Kajabi will export access logs from our system on your behalf to supplement your evidence.
Any additional logs from other third parties that you may have can also serve as compelling evidence.
You can only submit one file per type of evidence, so if you have several files representing one type of evidence, combine them into a single, multi-page file.

After submitting evidence to counter a dispute, it can take up to 2-3 months for the issuing banks to issue a resolution on the disputes.

For the majority of institutions, reviewing disputes and evidence is a manual process that follows varying policies, so there are no guarantees the resolution will be in your favor even with the most well-presented evidence.

If a dispute is resolved in your favor, the disputed amount will be returned to you. If the issuing bank rules in the cardholder’s favor, the funds will not be returned to you.

Have more questions? We are always here to help. Don't hesitate to reach out to payments.risk@kajabi.com with any assistance you may require surrounding disputes.