Overview
When an end-payer initiates a dispute with their bank or credit card provider, the resulting chargeback process is handled directly within the Tesorio platform for all Tesorio Pay users.
You cannot stop chargebacks with self-service refunds. If a chargeback is already initiated, you must manage it through this disputes workflow.
If you are using the Stripe integration rather than Tesorio Pay, you must continue to manage disputes and evidence submission within the Stripe dashboard.
The Chargeback Lifecycle
Once a dispute is filed by a customer, the following automated workflow begins:
Fund Retrieval: Funds are automatically pulled back and dispersed to the party filing the dispute. This is standard procedure for all payment processors.
Notification: Administrators will receive an email and in-app notification from Tesorio.
Review: The dispute will appear in your Tesorio dashboard with high-level details including status and key dates where you can review and accept or defend the dispute.
Submit Evidence: Once evidence is submitted, the dispute is sent to the underlying card scheme or bank for adjudication.
Resolution: You'll receive follow-up notification upon resolution being issued and the status will update appropriately. If won, your customer will be re-charged the payment amount
Managing Chargebacks
To manage or contest a dispute, navigate to Tesorio Pay > Disputes > Chargebacks.
Identify the Dispute from the list and click into it. Choose whether to defend or accept the chargeback.
If you choose to defend, select the reason you're defending the chargeback. You can choose between:
The merchandise was received by the shopper
The goods and services were provided
Select Continue.
Upload evidence for your defense. Documents must be:
In English
A4 or US Letter size (recommended)
A maximum of 2MB for PDF and 10MB for JPG, JPEG, TIFF
Select Submit.
Once submitted, Tesorio forwards this evidence to the underlying bank or card scheme. You will receive updates upon resolution and the status will update in Tesorio.
Lost: You will not receive the funds.
Won: The customer is re-charged the amount of the payment, and this will appear in the scheduled payout sweep post confirmation of a successful dispute defense.
Tesorio and our payment processor cannot influence the final verdict of a chargeback.
Fees and Reconciliation
Every chargeback incurs a $25 fee. The cost of the chargeback (and fee amount) is withheld via your next scheduled sweep.
We reference the chargeback cost/fee in the payout report so you can reconcile it with the funds hitting your external account for tracking purposes.
Here is how the financial reconciliation is handled:
Scenario | Financial Impact |
Initial Filing | The disputed amount + $25 fee is withheld from your next scheduled payout sweep. |
Lost Dispute | The withheld funds and fee remain with the bank; no further action is taken. |
Won Dispute | The customer is re-charged. The original payment amount will appear in your next payout sweep following the successful defense. The $25 fee is not refunded. |