A chargeback occurs when a patient disputes a card payment you made and requests a refund from their bank or card issuer.
Chargebacks usually happen when:
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The patient does not recognise the charge described in their bank statement, or
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The patient mistakenly believes a fraudulent payment was made when you charged their card.
When this happens, you receive a notification email from Halaxy.
This article details what happens in a chargeback, why you were charged, and what you can do to resolve it and get your funds back.
Important
This process is controlled externally by financial institutions - such as Visa, Mastercard and American Express - and is beyond Halaxy’s control. Please note that financial institutions charge a non-refundable $30 processing fee (including GST) to handle a dispute, which applies regardless of the outcome. Any payment provider using these card services are subject to the same process. For more information, please see our terms of service.
Click the arrows to view the entire chargeback process step by step.
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1. Your patient disputes the charge with their card issuer.
The chargeback process begins when the patient requests a refund from their card issuer.
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2. The bank charges the full disputed amount to Halaxy - not you.
This means Halaxy is now out of pocket because of the patient's payment dispute.
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3. Halaxy recovers the amount from you until the chargeback is resolved.
To recoup the funds, Halaxy charges you the amount through your stored credit card and notifies you of the chargeback.
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4. To recover your funds, you have to request your patient to withdraw the chargeback.
Speak with the patient to clarify the issue and, if appropriate, have them withdraw the dispute with their bank. If the patient withdraws the chargeback and the bank confirms and accepts the withdrawal, the funds are returned to Halaxy, notified via official communication channels. Halaxy then returns the funds to you.
Caution
The bank will automatically transfer the disputed funds to the patient in the next 14 days unless the dispute is withdrawn. It is important to contact your patient immediately to resolve the issue. See our tips on how to protect your practice from chargebacks.
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5. The card issuer decides if the chargeback is valid or not.
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If the chargeback is resolved in your favour, Halaxy returns the funds to you.
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If the chargeback is resolved in your patient's favour, the patient is refunded by their card issuer.
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The card issuer processes the chargeback at the request of your patient.
If the patient requests to withdraw their dispute within a reasonable time frame, the card issuer may potentially withdraw it. Halaxy has no control over this chargeback process as it is handled externally.
Halaxy acts strictly as the payment intermediary between your practice and the global card networks (such as Visa, Mastercard, and American Express).
When a patient initiates a dispute, the card issuer automatically debits the funds from the payment processor. This is a standard regulatory protocol enforced across the entire financial industry, meaning the process is identical regardless of the payment system or provider you use.
Halaxy does not initiate, manage, or benefit from chargebacks. Because these disputes require significant administrative handling and cause clear disruption to your practice, our sole focus is to provide you with the documentation needed to manage the claim and protect your revenue.
Speak to the patient to clarify the issue, and if appropriate, get them to withdraw the dispute with their bank. However, until Halaxy receive confirmation from the bank from the official channels that the chargeback is won (i.e. the dispute is withdrawn), the funds will not be returned.
As soon as Halaxy receives notification from the card issuer from their official communication channels, Halaxy will transfer the funds.
The best way to protect your practice from chargebacks is to ensure your patients know what you are charging for and properly authorise payments. Halaxy offers a variety of features to protect your practice:
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Use payment limits and SMS authorisation to ensure all charges are authorised by patients.
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Customise your statement descriptor to a label that your patient will recognise on their bank statements, such as your name or practice name.
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Require consent to your practice's terms and conditions, such as your cancellation policies.
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Require upfront payment from patients when they book appointments.
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Obtain signed consent forms to authorise the practice to charge the customer's card for appointments and/or cancellations.
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Use two-way appointment reminders to gain confirmation from patients before appointments.
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