Understanding Lost Disputes & Fees
1. Who Makes the Decision?
Pebble does not decide the outcome of any payment dispute.
When you submit a counter-claim, Pebble compiles your evidence and submits it directly to the cardholder's bank via Stripe. The final decision rests entirely with the card-issuing bank (e.g., Barclays, HSBC, Monzo) and the card network (Visa/Mastercard).
Pebble acts solely as your payment facilitator. We are on your side throughout the process, but banking networks operate as independent arbitrators and their decisions are final.
2. Why Do Banks Rule in Favour of the Cardholder?
The banking system operates on a "merchant guilty until proven innocent" model. Unlike a traditional legal process, card issuers place the full burden of proof on the business.
Common reasons banks uphold disputes include:
- Strict Electronic Proof Standards: Banks review evidence using automated and rigid criteria. If written comms or attendance logs do not explicitly disprove the cardholder's claim, the bank defaults to protecting their cardholder.
- "Proving a Negative": In disputes claiming "cancellation requested," banks often demand proof that a customer didn't cancel prior to a charge. Even when you provide cancellation logs and T&Cs, bank review algorithms sometimes dismiss merchant evidence if the cardholder insists otherwise to their bank.
- Household Miscommunications: If a joint account holder or partner reported a charge as unrecognised in their banking app, the bank treats it as unauthorised fraud unless the cardholder formally calls their bank to withdraw the claim.
3. Understanding Bank Dispute Fees
When a dispute occurs, banking networks charge processing and administrative fees. Pebble passes these fees through strictly at cost with zero markup.
| Scenario | Fee Structure | Total Cost to Provider |
|---|---|---|
| Option 1: Accept / Timeout | £15 Bank Admin Fee | £15.00 + Original Transaction Reversed |
| Option 2: Lost Counter-Claim | £15 Bank Admin Fee + £20 Challenge Fee | £35.00 + Original Transaction Reversed |
| Option 3: Won Counter-Claim | £15 Bank Admin Fee | £15.00 (Original Transaction Maintained) |
- Why is there a £15 fee even if I win? The £15 fee is a non-refundable admin penalty charged by the card networks (Visa/Mastercard) simply for opening a dispute file.
- Why is there an additional £20 fee for a lost counter-claim? Banks charge an extra fee to cover the administrative cost of processing and reviewing contested evidence files when a challenge is unsuccessful.
As outlined in Pebble's Terms & Conditions, payment processing and bank-levied dispute fees are the responsibility of the account holder. Pebble does not profit from dispute fees.
4. Recovering Your Money Outside the Banking System
A bank chargeback is purely a card payment reversal—it does not cancel the legal contract between you and the customer.
If a parent attended your sessions or breached your cancellation terms, they still legally owe you for the service delivered and any resulting costs.
You have full right to recover these funds directly:
- Issue a Direct Invoice: You can issue a direct invoice to the customer via Pebble or email for the unpaid session fees, alongside the £15 or £35 bank chargeback fee.
- Contact the Parent Directly: Reach out to explain that their bank's automated dispute resulted in an unpaid balance on their account that needs to be settled directly.
- Small Claims Court / Debt Recovery: If a customer refuses to pay for services delivered under your agreed Terms & Conditions, you can pursue the outstanding balance through small claims court.
If you require transaction logs, booking records, or attendance summaries to assist with direct debt recovery, please reach out to finance@bookpebble.co.uk and our team will be glad to assist you.