In the Vault: Credit Card Chargebacks

A credit card chargeback occurs when a customer disputes a charge with their credit card company, resulting in the reversal of the payment and a corresponding reduction to UND’s bank account balance. When a chargeback is initiated, the bank notifies UND Treasury, who in turn informs the department that had originally collected the payment.

The department has two options to resolve the chargeback:
1. Provide supporting documentation to the bank (through UND Treasury) demonstrating that the charge was valid. If the evidence is accepted, the bank will reverse the chargeback and recover the funds.
2. Work directly with the customer to resolve the issue and arrange for repayment.

Important: If the department chooses not to dispute, or the bank does not accept the evidence, then UND Treasury will record the reduction of revenue by a journal entry.

Questions? UND.treasury@UND.edu