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Understanding Stripe Disputes & Chargebacks

A dispute occurs when a customer contacts their bank or credit card issuer to contest a payment made through Pebble. When this happens, the bank initiates a formal process to investigate the claim, which temporarily places a hold on the funds while the case is reviewed.

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.

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 and Stripe to cover the administrative costs of the investigation.

  • The Dispute Hold: When a dispute is lodged, the bank places a hold on the disputed 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 is 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).

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. 

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.