Avoiding Disputes
If a tenant accidentally makes a payment, contact them immediately to avoid a potential dispute.
ACH payments can sometimes cause confusion due to:
Longer settlement times
How banks process ACH Direct Debits
For example: A tenant may contact both TurboTenant and their bank to dispute a payment. If a refund is issued at the same time their bank initiates a dispute, the tenant may receive two credits for the same payment. That’s why it’s important to clearly communicate the refund status and timeline with the tenant.
Credit Card Disputes (Chargebacks)
A dispute — also known as a chargeback — occurs when a cardholder questions a charge on their account and contacts their card issuer. When this happens, the payment is immediately reversed and the card network applies a dispute fee.
The disputed amount and dispute fee are temporarily deducted from your account while the dispute is under review.
How the Dispute Process Works
If a dispute is opened against a payment made through TurboTenant, Stripe follows this process:
Notification — TurboTenant's Trust & Safety team will contact you by email when a dispute is created.
Deduction — Stripe automatically withdraws the disputed amount and a dispute fee from your account.
Details & Evidence — You'll receive a description of the dispute and any available claims made by the cardholder. You'll also have the opportunity to submit evidence to support your case.
Resolution — The card issuer reviews both sides and makes a final decision. If the dispute is resolved in your favor, the funds are returned to your account. If the cardholder wins, the payment remains refunded. The decision is final and made solely by the card issuer.
Note: The disputed amount may be more or less than the original payment depending on fees or currency changes.
How Long Does It Take?
The full lifecycle of a dispute — from the moment it's initiated to the final decision — can take 2–3 months.
Important Notes
Stripe facilitates the dispute process but cannot influence the outcome
The cardholder's bank makes the final decision
ACH Disputes
Tenants can dispute ACH payments directly with their bank:
Personal accounts: within 60 calendar days of the debit
Business accounts: within 2 business days
In rare cases, disputes may be accepted outside these windows
Important: ACH disputes are final. There is no appeal process, unlike credit card disputes. If a tenant successfully disputes a payment, TurboTenant and the tenant must work together directly to resolve the issue.
Double Refund Risk
If you issue a refund to your tenant outside of TurboTenant while the tenant’s bank also initiates a dispute, the tenant may receive two credits for the same transaction.
To avoid this:
Communicate with the tenant before processing a refund outside of TurboTenant
Confirm no dispute has been filed before issuing a refund to your tenant outside of TurboTenant