IN BRIEF
If your business uses the iClassPro Payments Platform, the System records chargebacks on the family ledger for you. Each chargeback, chargeback reversal, and second chargeback gets its own entry under the original payment. The family's balance updates to match. This article shows what staff see on the ledger and how charges and the Technology Fee change. It also explains why you can't refund a payment while a chargeback is open.

• Overview
  • Key Details
• Accessing the Feature
• Step-by-Step Instructions
  • Reviewing Chargeback Entries on the Ledger
  • When a Chargeback Is Recorded
  • When a Chargeback Is Reversed
  • When a Second Chargeback Is Recorded
• Additional Details
  • How the System Chooses Which Charges to Adjust
• Troubleshooting & FAQs
• Related Articles

This article only applies to businesses on the iClassPro Payments Platform. This is the platform that gives you the PAYMENTS page. If you use iClassPro Payment Services (Merchant Portal), see What is a Chargeback?.

Overview

A chargeback happens when a cardholder disputes a payment with their card issuer. The cardholder can dispute the whole payment or just part of it.

When the payment processor reports a chargeback, the System updates the family ledger for you. It:

• Adds a chargeback entry under the original payment.
• Takes the charged-back amount off the charges the payment was applied to.
• Adjusts the Technology Fee on the payment, if one applies.
• Updates the family's balance.

If the chargeback is reversed later, or if the card issuer issues a second chargeback, the System adds new entries for those events, too.

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Key Details

• Each chargeback event has its own entry. The System never edits or removes older entries. This way, the ledger shows the full history of the dispute.
• Only the disputed amount is removed. For example, if a family disputes $30.00 of a $100.00 payment, the other $70.00 stays applied to the family's charges.
• Amounts always show as positive numbers. A reversal reads as "Chargeback Reversed: +$30.00." It never shows as a negative amount.
• Some details are for staff only. These include the payment processor's reference number, the chargeback reason code, and the chargeback status. They only show in the Office Portal. Families can't see them.
• You don't need to delete the payment to balance the ledger. The System has already accounted for the chargeback.

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Accessing the Feature

1. Go to the FAMILIES page and find the family.
2. Select the currency symbol/ledger icon. This opens the family's ledger options.
3. Select Full Ledger. This shows the family's complete ledger.
4. In the dropdown under the family information, change the view from Charges to Payments. You will now see the family's payments, where chargeback entries are listed.

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Step-by-Step Instructions

Reviewing Chargeback Entries on the Ledger

1. Open the family's ledger. Follow the steps in Accessing the Feature.
2. Find the original payment.
3. Expand the payment to see its line items.
4. Review the chargeback entries listed under the payment. Each entry shows:
   • The payment processor's reference number.
   • The chargeback status, amount, date, and reason code.
   • The amount of that chargeback event.

Chargeback entries show in red. Reversal entries show in black and are labeled as reversed.

• To learn what a reason code means, see What Do the Chargeback Reason Codes Mean?.

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When a Chargeback Is Recorded

When a chargeback is recorded against a payment, here is what happens:

• A chargeback entry is added under the payment.
• If a Technology Fee applies to the payment, a separate entry shows the Technology Fee adjustment.
• The charged-back amount is taken off the charges the payment was applied to.
  • The amount the payment paid toward those charges goes down by the chargeback amount.
  • The balance owed on those charges goes up by the same amount.
  • If the payment was applied to more than one charge, the System follows a set order. See How the System Chooses Which Charges to Adjust.
• The payment's unapplied balance stays at $0.00. The charged-back money does not show up as a credit.
• The System recalculates the Technology Fee on the payment so it matches the amount that is left.
• If the whole payment is charged back, the payment is also marked as returned.

Example: A family pays $100.00 toward a $100.00 tuition charge. There is no Technology Fee. The cardholder disputes $30.00. After the chargeback is recorded:

• The payment shows $70.00 applied.
• The tuition charge shows a $30.00 balance.
• The family owes $30.00.

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When a Chargeback Is Reversed

A reversal means the card issuer gave the disputed money back to your business. When a reversal is recorded:

• A reversal entry is added under the payment. It shows in black and is labeled as reversed.
• The reversed amount is added back to the payment as an unapplied credit.
• The reversed amount is not applied to the charge again on its own. The charge keeps the balance that the first chargeback created.
• The Technology Fee on the payment goes back to its full amount.

To clear the charge balance, apply the payment's unapplied credit to the charge. To learn how, see How Do I Apply Payments/Credits in Family Ledgers?.

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When a Second Chargeback Is Recorded

A second chargeback is the last stage of a dispute. It means the card issuer did not accept your evidence and took the disputed money back again. When a second chargeback is recorded:

• New chargeback entries are added under the payment. This includes a new Technology Fee adjustment entry if a fee applies.
• The payment, charges, and Technology Fee update the same way they did for the first chargeback.
• The earlier chargeback and reversal entries stay on the ledger.

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Additional Details

How the System Chooses Which Charges to Adjust

If a payment was applied to more than one charge, the System takes the chargeback amount off in this order:

• First, it takes the amount off the charge with the smallest applied amount.
• Next, it moves to the charge with the next smallest applied amount.
• It keeps going until the full chargeback amount is accounted for.

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Troubleshooting & FAQs

• Do I need to delete the payment after a chargeback?
  • No. The System records the chargeback for you. You don't need to delete the payment to balance the ledger.
• Why can't I refund this payment?
  • You can't refund a payment while it has an open or lost chargeback. If the chargeback is fully reversed, refunds are available again.
• After a reversal, why does the charge still show a balance?
  • Reversed money goes back to the payment as an unapplied credit. Apply the credit to the charge to clear the balance.
• Why did the Technology Fee change?
  • When part of a payment is charged back, the System lowers the Technology Fee to match the amount that is left. If the chargeback is reversed, the fee goes back to its full amount.
• What do families see?
  • The family's account balance and statements in the Customer Portal reflect the chargeback. Families can't see staff-only details, such as the reference number, reason code, and chargeback status.

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Related Articles

• What is a Chargeback?
• What is the PAYMENTS>"Disputes" View?
• What Do the Chargeback Reason Codes Mean?
• How Do I Apply Payments/Credits in Family Ledgers?
• What is the Bank Deposit Report (FIN-2)?

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