What happens if a payment is disputed?

In the event of a dispute, we will inform the Payee when a payment is disputed by a Payer. If you receive a dispute notification, you should reach out to your Payer (client) to resolve the reason for the dispute.

For businesses that receive a dispute for the first time, one of our team members may reach out to you first. For future points of contact, we will communicate through email only.

Dispute Overview

A ‘disputed transaction’ can arise for a variety of reasons. The most common types of disputed transactions include fraudulent transactions, unrecognized transactions, unauthorized transactions, duplicate processing, and recurring transactions.

You should take steps to avoid payment disputes by your clients to keep your account in good standing. Disputes are a very rare occurrence, but there are a few things you can do to decrease your chances of a client disputing a payment made to you:

1. Clearly communicate payment policies to clients before entering into a transaction. It should be clear to the client that payments will be coming from their bank account and should include information about payment timing and the client's consent to charges.
2. You should obtain written consent from clients to charge their accounts for the products or services provided. You can have a separate, signed, up-to-date, and accurate contract outlining payment terms and conditions.
3. Send payment receipts to clients' emails following payment collection. Forwardly can send these automatically for you.

You will need to contact your client to try to resolve the reason for the dispute. It is possible that the client did not recognize the transaction. You will need to reach out directly to your client to resolve the reason for the dispute. Pending transactions cannot be canceled. We will issue refunds to your client only after the funds are fully settled.

When does Forwardly process the reversal of payments from an account?

We will process a reversal as soon as your client has a dispute. If we receive a payment dispute, we will immediately debit your bank account for the disputed amount. You will have to resolve and settle these disputes directly with your client.