Understanding Stripe Disputes & Chargebacks

Why do customers raise disputes?

Most disputes in the activity sector are not due to intentional fraud, but rather a lack of recognition. Common reasons include:

• Unrecognised Transactions: The parent doesn't recognise the name (set to your Provider name) on their bank statement.

• Third-Party Card Usage: This is a frequent cause. A spouse, partner, or grandparent may have used their card to book the activity. When the cardholder sees the charge, they don't associate it with the child's club and report it as "unauthorised."

• Service Not Provided: The parent claims the activity was cancelled or their child didn't attend, and they feel a refund is due.

• Cancelled Authorisation: The parent believes they cancelled their subscription or re-enrolment before the charge was taken.

Understanding Disputes

How Charges Appear on Bank Statements

Transactions processed through Pebble appear on the cardholder's bank statement under your business name (or trading name), not under "Pebble". If they (or a joint account holder or partner who owns the card) do not recognise the transaction, they may flag it as "unrecognised" with their bank without consulting the person who booked the class.

Bank Dispute Reason Codes

When a dispute notice is opened, the bank assigns a pre-set category. It is important to know that these reasons are automated drop-down options selected by the cardholder's bank, not personal feedback written by the parent. For example:

• "Fraudulent / Unauthorised transaction": Standard bank terminology for an unrecognised charge, not identity theft or hacking. It usually happens when a partner doesn't recognise the statement line or Stripe Link defaults to a saved household card.
• "Product defective / not as described": This is the default category banks assign when a customer taps a button in their banking app to report a service issue or fee disagreement.

Stripe Link & Saved Wallet Cards

Many transactions on Pebble are processed via Stripe Link—a secure 1-click checkout option (similar to Apple Pay) managed directly by Stripe which makes it quick and easy for customers to complete their purchase.

When a customer checks out using Link, the system automatically saves their payment details to their Link wallet for faster future checkouts. On subsequent bookings, Link defaults to their saved card. This can occasionally lead to disputes if:

• A customer previously entered a spouse's, partner's, or secondary card while logged into Link.
• Link defaulted to that saved card during checkout without the customer taking close notice.
• The secondary cardholder sees an unexpected charge on their statement and reports it to their bank.

Stripe Link is managed directly by Stripe- neither Pebble nor providers have access to a customer's saved wallet details. If a parent is unsure why a card was billed, they should log in at app.link.com/wallet to view, remove, or update their saved cards, or visit support.link.com for support.

The Financial Impact & Fees

Pebble does not charge you for disputes, nor do we profit from them. These fees are levied directly by the banks to cover the administrative costs of the investigation.

• The Dispute Hold: When a dispute is lodged, the bank places a hold on the amount. This payment is essentially frozen- it cannot be refunded until any dispute has settled. 

• Initial Admin Fee (£15): A £15 admin fee is levied by the bank for the processing of the dispute.

• Challenging a Dispute (£20): If you choose to counter the dispute by submitting evidence, an additional £20 fee may be levied (so the total fee increases to £35).

  • If you challenge the dispute and the bank rules in your favour, the £20 fee is cancelled and the original booking payment is retained by you. The £15 fee is still charged by the bank.

  • If the bank rules against you, the original payment will be reversed, and the full £35 fee will be payable.
  • If you choose not to challenge the dispute, and the cardholder does not cancel it before the deadline, the dispute will automatically go against you, in which case the original payment will be reversed and the  £15 admin fee will be payable.

Why liability sits with the Provider

While Pebble provides the technology to facilitate your bookings, the legal contract for the service exists between you (the provider) and the customer (the parent).

Because you are the recipient of the funds and the one delivering the service, the bank holds you liable for the transaction. Pebble acts as the platform (the "agent"), but we cannot legally defend a dispute on your behalf because we do not have the direct record of service delivery (e.g., we cannot prove the child attended your specific session). This aligns to our T&Cs.

How to handle a dispute

You do not need to monitor Stripe for these. Pebble will send you an email when a dispute is raised. This email will contain the specific details of the transaction and clear instructions on your two options:

1. Accept the Dispute: If the customer is correct (e.g., a refund was promised but forgotten), you can choose to accept it. The  payment to you will be reversed, and you will be invoiced to pay the £15 fee.

2. Challenge the Dispute: If you believe the charge was valid and have proof of service (attendance logs, signed T&Cs, etc.), you can ask us to challenge it. We will guide you through the evidence submission. If you win, the booking payment is retained by you, and the £20 fee is cancelled. The £15 fee however will still be invoiced. 

Matching Evidence to the Dispute Reason

Card-issuing banks review counter-claims using strict electronic guidelines. When gathering evidence, you must tailor your submission to the specific reason the dispute was raised:

• For "Fraudulent / Unauthorised" Claims: Showing that a child attended class is not enough on its own to win a fraud claim. The bank's position is that the cardholder never authorised the money to be spent in the first place (e.g., if a parent used a partner's card without their knowledge).
  • To win a fraud claim: Evidence must prove the cardholder was aware of or authorised the purchase—such as email exchanges with the account holder, matching account details, or (ideally) asking the parent/cardholder to contact their bank to withdraw the claim.
• For "Product Defective / Not as Described" or "Subscription / Cancellation" Claims: Here, showing service delivery and contractual agreement holds the highest weight:
  1. Written Communications (Highest Impact): Email threads, WhatsApp messages, or text exchanges where the parent confirmed attendance, acknowledged a notice period, or agreed to terms.
  2. Attendance Registers (High Impact): Official register screenshots confirming the child physically attended classes during the billing period in question.
  3. Terms & Conditions (Supporting): Your agreed cancellation policy or booking terms (highlighting notice periods agreed to at checkout).

Pro-Tips for Preventing Disputes

Prevention is always the most cost-effective strategy. To keep your dispute rate low:

• Process Refunds and Cancellations Promptly: If a parent is due a refund, process it through Pebble immediately. It is much cheaper to refund a booking than to lose the money via a dispute.

• Check for Third-Party Payers: If the name on the payment doesn't match the parent, remind them that the cardholder might see the charge.

• Transparent Policies: Ensure your cancellation and refund policies are up to date and setup correctly to show during the booking process.

• Communicate the "Statement Name": Remind parents what name will appear on their bank statement (this will be your provider name, as setup in Pebble)
• Speak to the customer: The best chance of having a dispute resolved in your favour is to have the cardholder cancel the dispute with their bank.