With Clio Payments, you can track payment disputes and chargebacks in Clio Manage if either occurs, to protect your firm's funds and respond before a deadline passes. Dispute records document what happens when a client disputes a credit card or eCheck payment, the chargeback fee your firm pays, and the dispute status. Understanding the process enables your firm to act quickly and protect its trust account.
What happens during a chargeback?
When a client disputes a credit card or eCheck payment, card network rules require that the disputed funds be returned to the client's bank account as soon as notification is received. This return of funds is a chargeback. The client's card network initiates a dispute or chargeback, not Clio Payments. The funds are withdrawn exclusively from your firm's operating account, even when the original payment was made into trust. The bill in Clio Manage returns to an unpaid state, and an email notifies all administrators and the primary subscriber.
Important: The disputed amount and the chargeback fee are always withdrawn from your operating account, even when the original payment was made into trust. This protects your trust account from third-party debts and keeps your firm aligned with trust accounting rules.
The email notification includes the chargeback details and how to respond. For assistance, email Clio's Chargebacks Team at chargebacks@clio.com.
Chargeback fee
A chargeback fee is deducted from your operating account in addition to the disputed amount. The fee is $15 USD in the US and $20 CAD in Canada. The issuing bank debits this fee and pays it to the card network. This fee applies to every dispute, regardless of outcome.
Track payment dispute statuses
Track the status of a disputed payment in Clio Manage.
- In Clio Manage, click Online payments.
- Optional: Click Filters to narrow results by client.
- Review the Status column for the following tags:
- Disputed (red): The payment has been disputed.
- Chargeback (red): Funds have been withdrawn from your firm's bank account.
- Evidence Submitted (blue): Your firm has submitted evidence toward the disputed transaction.
- Dispute Lost (red): The bank ruled in the cardholder's favor, or your firm accepted the dispute.
- Dispute Won (green): The chargeback resolved in your favor, and the funds returned to your firm.
Tip: For an in-depth guide to reducing dispute risk, see Everything Law Firms Need to Know About Chargebacks and ACH Disputes.
Up next
Respond to Disputes: Challenge or accept a dispute before the response deadline.