Chargebacks and Disputed Payments


A chargeback is a payment made to you that is formally disputed by your patient and reversed by their bank or credit card provider. This may be because the patient does not recognise the descriptor in their bank statement, or they mistakenly believe a fraudulent payment has been made when you charge their card.

Chargebacks are processed from Halaxy's merchant account, not yours. This means if a patient fails to withdraw a chargeback dispute in time, Halaxy is out of pocket and is required to recoup the funds from you. This is due to processes put in place by Visa, Mastercard and American Express and is beyond Halaxy's control.

If a chargeback is processed, your invoice will also be marked as unpaid due to the charge being reversed. In the event that we win the dispute or the customer successfully withdraws the dispute, we will remove this chargeback on your invoice.

Who is authorising the chargeback?

The card provider processes the chargeback at the patient's request. Halaxy has no control over this.

Why does Halaxy need to recoup funds from me?

When a chargeback is filed, Halaxy is immediately debited the full amount of the chargeback plus processing fees to cover the costs of refunding the cardholder and processing the dispute. Please note that it is Halaxy's account that is debited, not yours; the money you received from processing the transaction remains in your account.

Halaxy must recoup the funds from you in order to balance our account. You can prevent this by asking the cardholder to withdraw the dispute and submitting evidence to us to help us contest the chargeback. If either of these actions succeeds, the funds are returned to us, so there will be no need for us to recoup funds from you.

What to do when a patient disputes a payment

When a patient disputes a payment, you will receive an email from us notifying you. At this point, you should speak to the cardholder to clarify the issue and, if appropriate, get them to withdraw the dispute with their bank. Only the cardholder can ask to withdraw the dispute. When this occurs, please email us and provide signed, written evidence that the patient has withdrawn the dispute.

When a dispute occurs, you are also required to provide us with evidence that the charge is legitimate and that you had authority to charge the patient. We will use this evidence to attempt to contest the dispute. Suitable evidence includes:

  • the SMS from the patient authorising the payment

  • a signed consent form with acceptance of terms and conditions

  • proof of attendance of an appointment

  • written evidence from the patient confirming receipt of a service, including responses to SMS reminders and other communications

The window for withdrawing a dispute is limited, and Halaxy is debited the full amount plus chargeback fees as soon as a chargeback is filed (even before an outcome is decided). This means Halaxy is out of pocket and the patient is refunded at our expense, not yours (the funds you received from initially processing the payment remain in your account).

What happens when a dispute is lost

You will be advised by email when our account is debited or if the dispute is lost. When this happens, your invoice will be marked as unpaid, and Halaxy will need to recoup the funds from you. The easiest way to manage this is to simply re-process the payment on the invoice and then notify us; when this occurs, we simply retain the funds instead of disbursing them to you as normal. This balances all accounts.

If you do not re-process the payment, we may be required to charge your credit card or withhold payments from future Auto Payments to recoup the chargeback amount plus any additional charges and fees.

You will be notified by email throughout the process. Please stay in contact with both Halaxy and your patient so that disputes can be resolved as soon as possible.

Protecting yourself from chargebacks

The best way to protect yourself from chargebacks is to ensure your patients know what you are charging for and properly authorise payments. Halaxy offers a variety of ways to protect your practice:

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