Tips For Preventing and Winning Credit Card Disputes

Accepting credit cards offers numerous benefits and is essential for most businesses. However, it also exposes businesses to potential disputes. A dispute occurs when a customer contacts their bank to reverse a charge. This can happen for several reasons, such as a stolen card or dissatisfaction with a product or service.

By implementing a strong dispute prevention strategy, you can minimize conflicts, reduce chargebacks, and protect your revenue. 

The following best practices will help streamline processes, improve customer satisfaction, and strengthen your case in the event of a dispute:

Be Transparent & Ensure Clear Terms and Conditions

Customers should fully understand what they agree to when they accept your terms and conditions. To achieve this:

    • Use plain, straightforward language.

    • Keep it concise and easy to read.

    • Highlight payment-related policies prominently rather than burying them in lengthy paragraphs.

    • Offer reasonable compromises, such as allowing deposits to be rescheduled within a specific timeframe or setting clear deadlines for cancellations and refunds.

At Goldie, customers must acknowledge and accept the terms and conditions before completing their booking. This acceptance is saved, serving as strong evidence in the event of a dispute. The clearer your terms, the stronger your position.

Learn more: How do I add payment terms/policies for my clients to see?

Use a Recognizable Statement Descriptor

One common reason for disputes is that customers—or their family members—don’t recognize a charge on their statement. To prevent confusion, ensure your business name or booking platform appears clearly in your statement descriptor.

Keep a Paper Trail & Communicate in Writing

Whenever possible, communicate with customers in writing. While verbal conversations can be helpful, written documentation provides the best protection in disputes. You can communicate through Goldie’s two-way SMS feature or your number, but always keep records.

Examples of effective written documentation:

    • If a client requests to cancel an appointment and you remind them of the cancellation policy, you strengthen your case.

    • If you offer to reschedule and the client declines, this written exchange supports your claim.

    • If a client expresses dissatisfaction and you provide a documented resolution or explanation, it serves as strong evidence.

    • If you have a phone conversation, follow up with an SMS summarizing the discussion for written confirmation.

Learn more: Two way texting overview

Take Photos

Taking photos of your work is beneficial for social media, future reference, and dispute protection. We recommend attaching photos directly to the appointment or as a note for easy access in case of a dispute.

Utilize Intake Forms

For high-cost, infrequent services, intake forms can be essential. These forms can include:

    • A photo of the client’s ID.

    • A signature acknowledging the service details.

    • Clear expectations about what the service includes and excludes.

Goldie Pro Plus users can integrate intake forms into the booking process. Pro users can use external tools or paper forms and attach them as photos to the client’s profile for easy retrieval.

Learn more: How can I add forms to my online booking page?

Provide Tracking Information

When shipping physical products, choose carriers that offer online tracking and delivery confirmation. Share tracking details with customers as soon as they become available.

Be Accommodating

Banks often consider several factors when reviewing disputes, such as:

    • The time between the booking and the cancellation.

    • How far in advance the cancellation occurred.

    • Whether both parties made a good-faith effort to resolve the issue.

For example, if a client places a 75% deposit for an appointment scheduled two weeks out but cancels within 24 hours of booking, the bank is less likely to rule in favor of the business, even if there’s a strict no-refund policy.

Conversely, if a client cancels a few days before the appointment, refuses to reschedule, and it’s evident that you’re losing irreplaceable revenue, you have a stronger case.

While enforcing deposit policies is a business decision, we recommend considering the time between booking and cancellation when determining whether to issue a proactive refund.

By following these best practices, you can reduce disputes, protect your revenue, and build stronger relationships with your customers.

Still can’t find what you’re looking for? Return to the Help Center homepage to search for additional articles or reach out to us - we’re always here to help.