Handling Payment Disputes
Last updated 2026-07-27
In this article
A payment dispute happens when a cardholder asks their bank to reverse a charge. The bank holds the funds while it decides, and Neztio marks the invoice as Disputed. Disputes are rare, and most centers resolve them without drama: the important thing is to respond before the evidence deadline.
How You'll Know
- The invoice shows a Disputed status, and opening it shows a dispute banner with the current state and deadline.
- Your dashboard shows an alert while any dispute needs attention.
- Billing automation for that invoice pauses automatically: no reminders, late fees, or automatic payment retries while the dispute is open.
Your Two Options
You can contest the dispute by submitting evidence, or accept it and write the invoice off. Contesting is worth it when you have clear records; accepting is sensible when the amount is small or preserving the family relationship matters more.
Contesting: Submit Evidence
- 1Open the disputed invoice and click Submit evidence in the dispute banner.
- 2The Stripe dashboard opens in a new tab, on the dispute's page.
- 3Upload your evidence there: attendance records, the signed tuition agreement, and relevant message history are the strongest documents.
- 4Come back to Neztio and confirm that you submitted. The banner changes to awaiting review.
- 5The bank's decision usually arrives within 60 to 75 days. Neztio updates the invoice automatically when it does.
Accepting: Write Off the Invoice
- 1Open the disputed invoice and click Accept dispute (write off) in the banner. Managers and center admins only.
- 2Review the confirmation: the disputed amount will be marked uncollectible and the invoice moves to Written off status.
- 3Optionally record a reason, then confirm.
- 4The bank's reversal proceeds, the amount is tracked as bad debt in your billing summaries, and the decision is recorded in the activity log.
Accepting routes through the normal write-off flow, so it is reversible later if circumstances change. The dispute itself, however, cannot be re-opened once resolved.
Split Invoices
If the invoice is split across multiple payers and the dispute covers one payer's portion, the accept option is not available. To resolve it without contesting, simply do not submit evidence: the bank will decide the dispute and only that payer's portion is reversed. The other payers' payments are unaffected.
Outcomes
- Won: the bank sided with you. The charge stands and the invoice returns to paid.
- Lost: the bank reversed the charge. The invoice becomes refunded.
- Accepted: you chose not to contest. The invoice is written off.
Respond early. Gathering attendance logs and the signed agreement on day one gives you the full window to build a strong response, and the deadline is enforced by the bank, not by Neztio.
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