Billing Dispute Resolution
Dispute acknowledged within 1 hour. Investigation complete with categorization. Resolution applied (refund, adjustment, or explanation). Reference number provided. Pattern feedback to billing/product where applicable.
Before you start
- Billing system access (read + adjustment within agent threshold)
- Refund policy documented with approval thresholds
- Chargeback procedure documented
- Customer's dispute (charge, amount, claimed reason)
- Account billing history
- Plan terms and any active promo or discount
The steps
- Acknowledge within 1 hour and capture details — Reply within 1 hour: thank them for raising it, confirm what they're disputing (specific charge, amount, date), and that you're investigating. Avoid pre-judging — investigation comes first.
- Pull the full billing context — Pull: subscription history, plan changes, prorations, promo codes, prior disputes. Look for: did they change plans recently? Did a promo expire? Did they add seats they forgot about? Often the answer is in the history.
- Categorize the dispute — Map to: (a) genuine billing error (we charged wrong), (b) plan misunderstanding (they didn't realize about an add-on or proration), (c) failed cancellation (they thought they cancelled but didn't), (d) intentional charge they're now contesting (e.g., 'I wasn't using it').
- Apply the right resolution per category — Genuine error: refund fully + apology + audit. Misunderstanding: explain clearly + adjust if reasonable. Failed cancellation: refund partially or fully per policy + cancel now + explain. Intentional charge contested: depends on policy — refund may not be warranted but offer pause/downgrade.
- Process refund or adjustment within threshold — If within agent approval threshold (e.g., <$200), process directly in the billing system. Above threshold, route to support manager. Communicate the adjustment with: amount, expected timing (e.g., 5-10 business days for card refunds), reference number.
- Update customer record and prevent recurrence — If the dispute revealed a pattern (proration not explained, cancellation flow confusing), feed back to billing/product. Update customer record with the resolution. Note any flag (e.g., chronic disputer) for future awareness.
If it goes wrong
Customer files chargeback while dispute is being investigated
Move chargebacks into a separate workflow. Provide evidence to processor within their deadline. Don't be slow — chargebacks have hard windows.
Refund processed twice (manual + auto)
Always check existing pending refunds before processing. Audit weekly for double-refunds.
Repeat customer dispute despite no error
Flag account in CRM for billing/support awareness. Don't escalate refunds for the same disputed charge — but document each interaction for future reference.
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