Automated Handling of Payment Disputes and Chargebacks

Hi there,

Release date: 18th September 2024

What's New?

We are pleased to introduce an improvement to Lavanda PMS: Automated Handling of Payment Disputes and Chargebacks. This feature streamlines the management of payment disputes for Stripe transactions, automating the previously manual process of handling disputes and reversals.

When a Stripe payment (via card or SEPA) is initially successful but subsequently disputed by the payee, the payment will now be automatically marked as 'disputed'. If the dispute leads to a refund, the system will reverse the payment and create a payment reversal note for accounting purposes (Journals/Allocations), marking the payment as 'reversed by dispute'. In cases where the dispute fails, the dispute flag will be removed, and the payment will remain as successful.

Key Features:

• Automated Dispute Flagging: Payments via Stripe are automatically marked as 'disputed' when a dispute is raised.
• Automated Reversals: If a dispute results in a refund, the payment is reversed, and a payment reversal note is automatically generated for accurate accounting.
• Dispute Resolution: If the dispute is unsuccessful, the payment will retain its 'successful' status, with the dispute flag removed.
• No Partial Reversals: There are no partial refunds or reversals; the entire payment is reversed if the dispute is won by the payee.

Why This Change?

Previously, this process relied on manual Stripe notifications and manual creation of payment reversals, leading to inefficiencies and an increased risk of bad debt. Automating this process allows us to manage higher volumes of disputes more effectively while reducing operational risks.

Impact:

This feature improves operational efficiency by automating the handling of payment disputes, eliminating the need for manual intervention. It helps reduce the risk of errors, ensures accurate accounting, and lowers the potential for bad debt.

Getting Started:

Begin exploring this feature in Lavanda PMS to enjoy the improved management of payment disputes and chargebacks.

Warm regards,

Team Lavanda