Intuit's QuickBooks Payments now is offering a new dispute protection program in which charge-backs are automatically forgiven. The program is designed to help protect small businesses against unforeseen charge-backs, regardless of fraud, no questions asked.
QuickBooks Payments Dispute Protection1 safeguards a business against disputed charges for both fraudulent and non-fraudulent claims.
- The Payments Dispute Protection only applies to credit and debit card transactions, it does not cover automated clearing house (ACH), PayPal or Venmo transactions.
- Payments Dispute Protection is only available for QuickBooks Online customers,
- Currently, Payments Dispute Protection is only available to eligible QuickBooks Payments merchants.
Enrollment is simple, just check your eligibility and sign-up.
Checking Eligibility and Activating Protection
- Go to Settings ⚙ and select Payments.
- Look for the Payments dispute protection section. If the section is not available, you are not currently eligible.
- If you have the Payments Dispute Protection section, you can select Turn On to set it up. Only the Primary Admin for your QuickBooks Online Company can enable Payments Dispute Protection.
If you are eligible, as evidenced by the fact you have the Payments Dispute Protection section available to turn on, QuickBooks has all the information required for your sign-up.
Once you activate the protection, all your credit and debit card transactions will be covered.
You probably are wondering how much this protection costs, and how you pay for it?
You will see an increase in the processing fees you pay. The fee for Payments Dispute Protection can be as low as 0.99%, applied to every credit or debit card transaction you process with QuickBooks Payments.
This is in addition to your current credit card processing fees.
Review your Pricing
- Go to Settings ⚙ and select Payments.
- Select Payments dispute protection, then Coverage Details to see:
- Fee per transaction
- Remaining coverage balance
- Coverage limit
There is a coverage limit of $10,000 per charge-back and an annual limit of $25,000 per year.
Cancel Payments Dispute Protection
If you determine you no longer need this protection or decide to close your QuickBooks Online company, you can cancel Payments Dispute Protection. Be aware that while no refund is provided for previously paid Payments Dispute Protection; your payment processing rate remains the same.
- Go to Settings ⚙ and select Payments
- Select Payments Dispute Protection
- Select Turn Off to disable
Intuit recommends you keep the coverage for your QuickBooks company for at least three to 12 months after your last transaction with the company and before you close that company.
It also permits you to turn the Payments Dispute Protection on again if you decide you need to as long as the QuickBooks company remains an active subscription.
But be aware, if you turn off Payments Dispute Protection, it will not charge you the fee, but you will lose coverage on all your transactions, including the ones already paid for.
And, if you turn Payments Dispute Protection back on later, only transactions processed after reactivation will be covered. Only charge-backs that occur on payments during the time you are in the program are covered.
Eligibility Factors
Eligibility and coverage only applies to a single company and cannot be transferred to another one. Intuit doesn't guarantee availability for another company you may have since this program is based on eligibility for each company subscription.
Payments Dispute Protection is based on the linked QuickBooks Payments account. If that changes, you could lose protection.
Payment Disputes and Charge-backs
If you turned Payments Dispute Protection on, you will be notified by email that a charge-back occurred on one of your transactions and that it is automatically covered if it meets the program’s criteria. You also can find more info on the charge-back in the Resolution Center.
Intuit currently covers all charge-backs regardless of how the card was processed, including “no recourse charge-backs.” Like when the card had a chip, but the merchant swiped the card anyway.
There are times when charge-backs might not be covered by the Payments Dispute Protection:
- The processed payment happened prior to signing up for Payments Dispute Protection. Only payments processed post-sign-up are covered.
- A merchant has exceeded the individual charge-back amount limit of $10,000 or the total account limit of $25,000.
- A merchant's remaining coverage balance was not sufficient to cover the full amount. The merchant can fight the charge-back from the Resolution Center. If the merchant wins, the uncovered amount will be returned to the merchant.
- The eligible charge-back occurred over the weekend and will be covered the next business day.
- The payment was processed through PayPal or ACH, which is not a covered form of transaction.
Merchants still can option to challenge a charge-back, despite having Payments Dispute Protection:
- QuickBooks covers only the charge-back amount and related fees, but not arbitration fees.
- View the Case Details in the Resolution Center for the deadline (given by the bank/payment providers) to reply back with supporting documents for the charge-back. You should not have to submit documentation since QuickBooks covers the charge-back.
- View Amount Covered by Intuit to see how much of your charge-back was covered. It also shows in the current coverage balance. Upon case closure, the charge-back will not appear in the Resolution Center.
- If QuickBooks covered the full amount of the charge-back and you fought and won the dispute, the money goes back to QuickBooks because QuickBooks absorbed the initial loss of the charge-back. Your remaining coverage balance remains the same.
- In case of partial coverage, the uncovered amount will be returned to you.
Footnotes and Disclosures
1 Payments Dispute Protection: Payments Dispute Protection (“PDP”) is an additional service that covers you for certain payment disputes (i.e., “charge-backs”) that your customer initiates through its card issuer associated with a credit or debit card transaction on the American Express, Discover, Mastercard or Visa networks and are processed by QuickBooks Payments while you are enrolled in PDP. Payment disputes covered by PDP are subject to a per-payment dispute coverage limit of $10,000 with a total annual coverage limit of $25,000 for all payment disputes received on a rolling 365-day period. Payment disputes related to transactions processed by QuickBooks Payments prior to 3 p.m. (PST) on your enrollment day will not be covered if you enrolled in PDP after 3 p.m. (PST). The service fee for PDP ranges from .99% to 1.99% based on eligibility criteria. Terms, conditions, and service fee subject to change without notice. (Reprint of Official Intuit QuickBooks Payments Disclosure)
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