Occasionally, donations made through Tithely may be disputed. A disputed donation occurs when a donor raises a question or disagreement about a transaction with their bank, often leading the financial institution to initiate a chargeback request. This article explains what disputed donations mean, how they affect deposits, and the impact they have on integrations.
Note: Tithely always recommends donors speak with the church admins directly to discuss refunds and does not recommend issuing a dispute for legitimate donations.
What Is a Disputed Donation?
A disputed donation is a transaction that a donor, or their bank, has flagged as unauthorized or questionable. Common reasons for disputes include:
- Donor not recognizing the charge
- Duplicate transactions
- Errors in donation amount
- Potential fraud or unauthorized use of the donor’s account
When a dispute is filed, the funds from that transaction may be temporarily withheld while the dispute is under review by the bank or card issuer.
How Disputed Donations Impact Deposits
When a dispute is filed, the transaction amount may be deducted from your deposits. Here’s how it affects the deposit process:
Note: Account owners will receive an email when a transaction is dispuited.
- Deduction of Disputed Amounts: The disputed transaction amount is held back from current or future deposits, impacting the church's immediate cash flow.
- Review and Response: The Tithely team will work with your church to gather any relevant information that might support a reversal of the dispute. This may include donation records, donor communications, or supporting documentation.
- Outcome:
- If the dispute is resolved in favor of the donor, the funds are permanently withheld and refunded to the donor’s account.
- If the dispute is resolved in favor of the church, the funds are released back to your deposits.
Impact on Integrations
Disputed donations can affect integrations, particularly for financial tracking and reconciliation. Here’s what to expect in common scenarios:
- When a transaction is refunded due to a dispute this should come across your existing integrations. For unique and infrequent situations like this, checking all platforms to ensure the transaction has been recorded correctly is best.
Best Practices to Minimize Disputes
While disputes can’t always be avoided, these practices can help reduce their occurrence:
- Clear Communication with Donors: Ensure donors know how the transaction will appear on their statement.
- Transparent Refund Policies: Having a clear refund policy available helps to resolve potential issues before a dispute is filed.
- Proactive Donation Tracking: Regularly review donation records to ensure all transactions align with your records, making it easier to respond if a dispute arises.