The Canopy System allows you to place a transaction into “Dispute” via our API or the UI.
Flagging a Disputed Charge
Via API: The “Create Dispute “ API allows you to identify a transaction (i.e. a $100 charge at a grocery store) that needs to be placed in dispute by passing the account id and associated transaction id you desire to place into dispute. Once the request is received, the identified transaction will have a dispute record associated with it.
Canopy UI: To create a dispute for a transaction in the UI, you would simply need to find the transaction at the customer account level within the transaction history, select the option to view transaction details and then select the option to place the transaction into dispute
Once a transaction has been successfully placed into dispute, the following Canopy System based rules are employed consistent with Reg. Z and the FCRA
-All interest charges on the disputed balance will be suspended while the dispute is being investigated
-The disputed balance will not affect the status of an account. For example, if the disputed balance effectively becomes delinquent, the system will not change the account status due to non-payment of the disputed balance
-When a transaction is in dispute, any received payments will not be applied to the disputed balance
-If a transaction is in dispute at the time a new statement is cut, the disputed balance will not be used in the minimum payment calculation for that statement or any other statements where the transaction may still be in dispute
Managing a Dispute:
All disputes will result in the creation of a ticket in the Canopy system against the “Dispute Workflow”. Tickets are accessed via our API and presented through a “Kanban Style” board that allows you to move the “card based ticket” to a different status column as necessary (this may also be automated - see below).
Similar to other Kanban style cards, you are able to assign tickets to users, reassign if necessary, add comments and change status. The disputed transaction will also be displayed within the ticket, along with a link to view the details of the transaction
When a dispute is first created, it is placed in a “Pending” status (this is the individual dispute status, not the ticket status). From there a dispute is either “Won” or “Lost” based on the final resolution
Submitting Disputes to Processor:
Once flagged, you can submit disputes to the credit bureaus (via flat file/SFTP) and manage dispute updates. Updates to dispute statuses (i.e. dispute Won) will happen systematically as they are received. Additionally, your team will not have to “move tickets” once final resolution is received to “Completed” status, as the system will do this automatically.
Managing Principal and Interest Offsets:
Although Canopy does allow for manual credit and debit adjustments to accounts, once final resolution is received for a dispute (Ex. Won), Canopy will automatically generate the applicable principal and interest offsets as necessary and each of these offsets will reflect as individual line items within the customer’s transaction history. Your team will not have to manually make these adjustments.
As with all transactions, there is be an option in the transaction details view to see the original transaction that was offset by the chargeback (assuming the dispute was Won).