A chargeback is when a family disputes a card charge with their card company. A returned payment is a bank (ACH) payment that comes back days after it went through. This guide explains the difference, what to do for each, and where to find the records that support your school.
Before you start
Check who processes your payments, Stripe or Bluu. See How to Connect a Payment Provider.
You need access to Payments and member profiles. See Staff Permissions: What Each Access Control Setting Covers.
Chargeback or returned payment?
| Chargeback | Returned bank payment |
What happened | The family disputed a card charge with their card company. | The family's bank sent an ACH payment back, for example for lack of funds, a closed account, or because the family asked the bank to stop it. |
Where you see it | Stripe: an email from Stripe, and the dispute in your Stripe Dashboard. Bluu: an email from [email protected]. | Payments → Transaction Errors. Bluu schools also get a payment error email. |
Can you contest it? | Yes, with records, before the deadline. | Sometimes, for example when the family says they didn't authorize it. See Step 4. |
Step 1: Gather your records
Collect these from the student's profile in Accounts → Profiles.
Record | Where to find it | Why it helps |
Signed membership agreement | On the membership, click Actions → Email signed agreement, or check the Documents tab. | Shows the family agreed to the charges and your cancellation policy. |
Invoices or receipts for the disputed charges | Invoices tab | Shows what was charged, and when. |
Attendance | Attendances tab. Click Export to download it. | Shows the student kept coming to class after the charge. |
Messages to the family | Message History tab | Shows reminders and notices the family received. |
A short letter explaining the charge | You write it. | Bluu asks for one. Say what the charge was for, that the family signed the agreement, and that the student kept attending. |
Step 2: Respond to a chargeback
How you respond depends on who processes your card payments.
Stripe: Stripe emails you when a family disputes a charge. Open the dispute in your Stripe Dashboard, check the deadline, and submit your records there.
Bluu: Bluu emails you from [email protected] with the case number, amount, reason and due date. Contact NextKick support within 5 business days, through live chat (the chat icon at the bottom right of NextKick) or at [email protected]. Send the email and your records, and NextKick submits them to Bluu for you.
If you win, the disputed amount comes back to your account. Stripe charges a dispute fee for each chargeback (see Stripe's pricing page). With Bluu, the fee is set in your merchant agreement.
Step 3: Collect a returned bank payment
Go to Payments → Transaction Errors and find the student. Check the Error Reason.
Contact the family. If the account didn't have enough money, ask them to add funds. If the account is closed or wrong, send a payment update link so they can enter a new one. See How to Send a Payment Update Link.
Charge the payment again from the invoice with Pay Now. See Why Did a Bank (ACH) Payment Fail? What to Do.
If the family pays you in person instead, record it on the invoice. See How to Record a Membership Payment Made in Person.
NextKick doesn't retry a failed bank payment on its own, because each attempt can cost a fee.
Step 4: Contest a bank payment the family says they didn't authorize
If the family told their bank they didn't authorize a payment, you can send records that show they agreed to it.
Bluu: send NextKick support the signed membership agreement, the student's attendance, and the receipts or invoices for the payment.
Stripe: respond to the dispute in your Stripe Dashboard.
How to prevent disputes
Make sure every family signs the membership agreement, and that it includes your cancellation policy. See How to Send a Membership Agreement for Signature in NextKick.
Families who know what they'll be charged, and how to cancel, are less likely to dispute a charge.
FAQ
The family says the money left their bank, but the invoice is still unpaid. Why?
A bank payment can go through and then come back a few days later, for example when there weren't enough funds. The family sees the money leave and come back, and the invoice stays unpaid. Check Payments → Transaction Errors for the reason.
Is a returned bank payment a chargeback?
Usually not. A chargeback is a dispute on a card payment. A bank payment that fails, for example for lack of funds, is returned.
Why does the invoice still show Paid after a chargeback?
A chargeback doesn't change the invoice in NextKick, so it still shows Paid. Follow the case in your Stripe Dashboard or in Bluu's emails.
How long do I have to respond to a chargeback?
With Stripe, the deadline shows on the dispute in your Stripe Dashboard. With Bluu, contact NextKick support within 5 business days.
Can I charge the family again after a returned payment?
Yes. Once the family has added funds or a new account, charge the invoice again with Pay Now. See How to Fix a Failed Payment.