Studios/Gyms/Instructors Dispute Process

It's unfortunate but sometimes clients will dispute a charge on their credit card. We tend to see this happens for a variety of reasons:

1. The charge says Recess.tv (or some variation) instead of the studio/gym name

   • All charges should say the name of the studio or gym. Stripe passes the information along to the bank, but the banks do not always display it.

2. The client thought they canceled their membership but didn't and don't recognize the new charges.

3. Rare but due to being unsatisfied with the class/experience.

What is in this article

1. Dispute Process

2. Example emails you'll receive

3. Frequently asked questions

Recess Dispute Process

1. When a dispute happens, Stripe withdraws the funds from Recess until a decision is reached by the card network on who should win the dispute.

2. We place a negative payout for the dispute on your account. This will appear in two places:
   
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   • Bottom of the client profile

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   • Payments Report

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   • Note: the negative amount includes the processing and service fees charged to the client. There are two fees associated with disputes, a $15 bank fee that Recess will cover and then the Recess processing and service fee. The Recess processing and service fee will be covered by the Partner account. If the dispute is won, we will refund this back to you.

3. We email the you and the client inquiring about the dispute. (see examples of the emails below)

4. We appeal or accept the dispute with Stripe
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   • We accept if we do not hear back from you or if you/client agree it is an accurate dispute

   • We appeal based on the evidence you or the client submit. It can take the bank up to 8 weeks to resolve a dispute with Stripe.

5. Once we hear back from Stripe we will email you the outcome.

   • The bank agrees with our appeal, yay! They deposit the money back into our account and we in turn create a positive pending payout to your account (it will look similar to the images above)

   • The bank declines our appeal.

     • If the client agreed to the charge, you may run their card again for the charge

     • If the client disagreed with the charge, there is nothing further we can do since the bank declined the appeal. You may try to work it out with the customer.

Example emails from Recess notifying you/client of a Dispute

1. Initial Notification.

   • Recipients: The Gym/Studio and the Customer

   • Subject: We Received a Dispute from [Client Name]

   • Information in the Email: Client's Name, details about disputed charge

   • Action Required: Share proof a refund/cancelation was requested/processed or what is the reason for the dispute
     
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   • Sample Email

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2. Follow-up Notification. If we have not received a response to the Initial Notification, we will send a follow-up after 3 business days to the Gym/Studio and the Customer

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3. 2nd Follow-up. Sent 5 business days later, if no response has been received.

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4. 3rd Follow-up. Sent 7 business days later, if no response has been received

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Frequently Asked Questions

What can I do to win a dispute?

• If you believe the dispute reason is incorrect and want to challenge it, you can reply to any of the dispute emails we sent you or reach out to support@recess.tv and provide the following:
  • Proof that you already compensated the customer before they initiated the dispute (either within the dashboard or any communication you had with the customer).
  • A relevant document or contract showing the customer’s signature.
  • Any communication with the customer that you feel is relevant to your case (e.g., emails proving they received the product or service, or demonstrating their use of or satisfaction with it).
  • An email from the client’s bank confirming that the dispute was removed.
• Regardless of what happens between you and your customer, we will challenge all disputes after the email cadence is completed. Evidence can only be submitted once, using information from you or from the studio dashboard.

I talked to the client and the charges were incorrectly processed, what should I do?

• If you understand that the client should be refunded for the disputed charges, reply to any of the emails you received about the dispute and let us know. We will accept the dispute, resolving the case, and the client will be refunded according to their card issuer’s schedule.

What is the purpose of accepting a dispute?

• Accepting a dispute signals that you do not intend to challenge it. Technically, it is similar to doing nothing and refraining from submitting evidence. Accepting may speed up closure from the cardholder perspective, but this is not guaranteed and depends on the issuer.

Can I change my mind and submit evidence after I accept a dispute?

• No. Acceptance is irreversible. The card network will no longer accept evidence for this dispute.

Can I appeal my lost dispute?

• No. The bank’s decision is final and cannot be appealed or challenged.

Why does this dispute not have a resolution yet?

• After a dispute is created, there is usually 7–21 days (depending on the card network) to respond to the issuer. The sooner you respond (accept or challenge), the sooner the dispute can be resolved.
• Recess aims to resolve dispute cases within 7 business days after the cadence and communications with you and the client. If no response is received within this period, we will appeal with the available information.
• Once challenged (evidence submitted), the issuer has 60–75 days (depending on the card network) to evaluate and decide.
• The full dispute lifecycle, from initiation to final issuer decision, can take 2–3 months. There are no reliable ways to speed this up.

Best Practices

• Reach out to your customer to better understand their complaint and try to resolve the issue. If satisfied, ask the customer to contact their card issuer and withdraw the dispute. The process varies by issuer.
• Clear and frequent communication can prevent disputes. Use our Automations to track payment issues and quickly process refunds or replacement orders.
• Keep clients informed about updates on their payments or membership changes.
• Contact support@recess.tv if you have any issues or need clarification about payments. We are happy to help.