Have you received a dispute? Learn to respond to and counter disputes with Kajabi Payments.
In this article:
- How do I know if I have a dispute through Kajabi Payments?
- How to respond to a dispute
- How do I counter a dispute?
How do I know if I have a dispute through Kajabi Payments?
If one of your customers files a dispute, you will receive an email from payments.risk@kajabi.com including the details of the dispute, and the amount of the dispute (plus a $15 fee) will be withdrawn from your Kajabi Payments balance.
If your Kajabi Payments balance does not have enough funds to cover the fee and the disputed amount, funds may be pulled from your connected bank account.
Not to worry - you may get the money back if you win 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 the industry standard and is not specific to Kajabi Payments.
How to respond to a dispute
When a customer files a dispute, Kajabi serves as the intermediary between you and the issuing bank filing the dispute. The final resolution of the dispute is determined by the cardholder's issuing bank.
If you have a dispute, review the details of the dispute in your dispute notification email. Then, reach out to the customer to attempt to rectify the issue.
In any dispute situation, Kajabi recommends revoking access to any content that was purchased (if possible).
How to revoke a customer's product access.
When you should accept the dispute:
- If the dispute is a case of Legitimate Fraud - where it does appear that a compromised method was used, we recommend that you do not fight these disputes, accept them, 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.
- If your customer was due a refund and it was never processed.
- If goods or services were not provided to completion or were not provided to the standards set out at the time of purchase.
When you should try to counter the dispute:
- 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 cancellation date.
How do I counter a dispute?
If you have decided to counter the dispute, respond to the dispute notification email and let us know.
The following are examples of evidence that you may want to include in your email:
- Written communications with the customer (via email, social media, chat function, etc.)
- If delivering goods or services electronically, provide 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.
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 dispute.
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
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.
