Payment disputes can happen for any businesses processing transactions, occurring when a payer believes a payment was made incorrectly and disputes it with their bank or card company.
At brightwheel, disputes are rare, with less than 0.02% of payments disputed. This means most programs may experience only one dispute every 12-15 years, if at all. While uncommon, we understand how disruptive these situations can be.
In the rare event of a dispute, we make every effort to support providers and we have a dedicated team to assist providers. The method of payment is a determining factor in terms of what options are available.
Overview of the dispute process
Once a payment dispute is filed, the program administrator will receive an email notification.
Next, the payer's credit card company or financial institution will begin an investigation to ultimately determine if the payer wins (receives their money back) or loses (does not receive their money back) the dispute.
If the payment was made by credit card, you can submit evidence to the financial institution to defend the charge. If the payment was made via a direct bank transfer, providers may not get the chance to defend the funds.
How credit card disputes work
Disputes filed on credit card payments by a student contact (the payer) can be challenging, but there is more opportunity for a provider to fight the dispute.
When a student contact disputes a credit card transaction, brightwheel will make every effort to support the provider. Ideally, the provider and student contact should resolve the issue offline. If the dispute is not dropped, we will work one-on-one with providers to supply evidence to the credit card company to fight a dispute.
Providers who present clear, organized evidence are more likely to win and retain the funds. This one of the many reasons why it is important to maintain accurate messaging, attendance, activity, and payment records.
Once the evidence is provided, we’re not involved in the credit card company’s investigation but will notify you of the outcome. If the dispute is won by the student contact, the funds are returned to them. If they lose, the funds are retained by the provider.
Note: Before taking action on a disputed charge such as a refund or issuing a credit, we recommend contacting disputes@mybrightwheel.com to discuss what is best first.
How direct bank transfer (ACH, PADs) disputes work
Unlike credit cards, disputes on direct bank account transfers by a student contact are often more challenging because the decision falls to their bank on whether or not to accept the dispute. If the parent’s bank accepts this dispute, it is automatically resolved in their favor.
Please review additional information below based on where you are located.
🇺🇸 For U.S. providers
🇺🇸 For U.S. providers
There are three strict reasons ACH payments can be disputed: never authorized, wrong date, or wrong amount.
Note: ACH payments are electronic bank-to-bank transfers processed through the Automated Clearing House and
If a student contact submits a formal request in writing to dispute a payment made to your program, the bank will decide whether or not to accept the dispute. Brightwheel will notify you if an ACH dispute is filed, but if the bank decides to accept the dispute, it will be automatically resolved in the student contact’s favor.
Once an ACH dispute has been filed, providers have a couple of options:
Reach out to the student contact for additional context on the dispute to work together and find a resolution to move forward
Take legal action (e.g. small claims court)
We do suggest requiring a parent deposit as a form of insurance/protection at your program, so if this scenario does affect you or has already affected you, you can be prepared and have the deposit to ideally cover any losses.
We are here to support you during a dispute, but if a student contact chooses to go this route, brightwheel, unfortunately, has no control over the process or outcome.
Note: NACHA is the governing body that sets the rules for ACH payment processing and while they do allow a payer to dispute an ACH payment, they do not allow anyone to formally fight the dispute. Brightwheel is on your side, but because of this regulation, there is, unfortunately, nothing we can do to challenge the dispute on your behalf.
🇨🇦 For Canada providers
🇨🇦 For Canada providers
There are three strict reasons bank transfers via Pre-Authorized Debits (PADs) can be disputed: wrong date, wrong amount, or contract was canceled.
Note: Pre-Authorized Debits (PADs) are electronic bank-to-bank transfers processed through the Automated Clearing and Settlement Service (the “PAD Service”) operated by Payments Canada.
If a student contact submits a request to dispute a payment made to your program, the bank will decide whether or not to accept the dispute. Brightwheel will notify you if an PADs dispute is filed, but if the bank decides to accept the dispute, it will be automatically resolved in the student contact’s favor.
Once an PADs dispute has been filed, providers have a couple of options:
Reach out to the student contact for additional context on the dispute to work together and find a resolution to move forward
Take legal action (e.g. small claims court)
We do suggest requiring a parent deposit as a form of insurance/protection at your program, so if this scenario does affect you or has already affected you, you can be prepared and have the deposit to ideally cover any losses.
We are here to support you during a dispute, but if a student contact chooses to go this route, brightwheel, unfortunately, has no control over the process or outcome.
Note: Payments Canada is the governing body that sets the rules for PADs payment processing and while they do allow a payer to dispute an PADs payment, they do not allow anyone to formally fight the dispute. Brightwheel is on your side, but because of this regulation, there is, unfortunately, nothing we can do to challenge the dispute on your behalf.
Next steps
To learn more about the detailed process of fighting a dispute, how disputes may affect future deposits to your program, and how invoices with a disputed charge will be affected, please visit Challenge a disputed charge.
💡 Tip: Although payment disputes may not always be avoidable, we suggest reviewing some common best practices for avoiding & resolving payment disagreements as a provider.
Our primary focus during a dispute of any kind is to support our providers and do everything possible to assist.