Organizer guide: Understanding chargebacks and financial reserves
To safeguard your event finances, we strongly recommend that organizers plan for potential situations involving fraudulent transactions, lost disputes, and unplanned refunds. Establishing a financial reserve helps absorb the impact of chargebacks and ensures the continued smooth operation of your events.
What happens if a chargeback is lost?
If a cardholder files a chargeback and the bank rules in their favor:
- The full transaction amount will be refunded to the cardholder.
- Your organization will be charged a $15 administrative fee for the chargeback.
Can I recover the chargeback fee?
Yes. If an agreement is reached with the ticket buyer after the chargeback has been ruled in their favor, Showpass will issue a Supportive Resolution invoice to the ticket buyer to recover the refunded amount.
- If the ticket buyer pays the invoice, the organization will be refunded the full chargeback amount.
- The $15 administrative fee will also be reimbursed to the organization.
Tip: Keeping clear documentation of all transactions, communications, and refund policies helps support your case in the event of a dispute.
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