Documenting a chargeback

Here’s our recommendation for posting a chargeback on an invoice.

Add a note including a date to the original credit card payment such as “Chargeback 5/1/2016” so you know when you were notified by the bank of the chargeback.

From there, you would need to add two manual fees.  To do so, just select "Add Items" on the drop down and choose "Fee":

  1. The first manual fee is used to cover a Chargeback service fee.
  2. The second manual fee is used to record a Chargeback adjustment which causes the invoice to show a Balance Due and allow you to accept a new payment.

G/L Code Users: When you run a financial report, you want to retain the original credit card receipt and the new one. So the chargeback adjustment should go to a G/L code that is not considered new revenue.  We recommend creating a G/L code called “Chargebacks”, to avoid booking new revenue when processing a chargeback.

 

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