# Refunds and disputes

> What happens to the community's balance in a refund and in a dispute (chargeback): in a refund, the buyer gets the full amount back, the platform fee is returned along with it, and the community only returns what it received.

**In a refund, the buyer gets back the full amount they paid. The platform fee is returned along with it: the community only returns the part it received.**

A **dispute** (a *chargeback*), when the cardholder disputes the purchase directly with the bank, follows a different rule: the disputed amount comes out of the community's balance, on a sale in installments that includes the installment interest, and the platform fee is not returned.

## What it's for

- Knowing how much leaves the balance when a sale is returned.
- Checking a **Refund** or **Chargeback** line in the statement.
- Deciding calmly before returning a sale.

## How it works

### Refund

A refund returns to the buyer **the full amount they paid**. The **platform fee** (6.99% + US$ 1.00 per sale) **is returned along with it**, by Memberfy, and the community only returns **the part it received** from the sale, in a **Refund** line of the [statement](/pagamentos/saldo-e-extrato). The buyer gets the e-mail *"Refund of US$ … for …"*, and the community, the notice *"Refund issued"*.

That's why a refund's debit equals the credit the sale left in the balance, whichever option **Who Pays the Fees?** has:

| Who pays the fee | The buyer paid | The sale credited | The buyer gets back | A full refund debits |
|---|---|---|---|---|
| **Buyer** | The price + the fee | The price | The price + the fee | The price |
| **Organization** | The price | The price − the fee | The price | The price − the fee |

In both cases, the balance goes back to what it was before the sale.

A **partial refund** follows the same math, in proportion to the amount returned: the fee comes back in the same proportion, and the community returns the proportional part of what it received.

### Dispute (chargeback)

In a dispute, the cardholder's bank gives them back the amount of the purchase, and that amount comes out of the community's balance, in a **Chargeback** line. The community gets the notice *"Chargeback opened: …"*. On a sale **in card installments**, the cardholder disputes what they paid, **installment interest included**, so the community returns everything, **interest included**, even though the interest never went into its balance. In a dispute, the platform fee is not returned.

To cover part of these cases, **4%** of each card sale is held for **30 days** (the **Chargeback Reserve**). See [Balance and statement](/pagamentos/saldo-e-extrato#the-chargeback-reserve).

### Who issues the refund

The dashboard doesn't have a refund button yet: to return a sale, contact [david@memberfy.net](mailto:david@memberfy.net). When the refund happens, it shows up in the statement and in the e-mails as described above.

## Examples with numbers

**What leaves the balance in a refund.** A sale of **US$ 100.00**, with the fee paid by the **buyer**:

- the fee is US$ 6.99 (6.99%) + US$ 1.00 = **US$ 7.99**;
- the buyer pays US$ 100.00 + US$ 7.99 = **US$ 107.99**;
- the sale credits **US$ 100.00** to the community's balance;
- a full refund returns **US$ 107.99** to the buyer: the **US$ 100.00** come out of the community's balance, and the **US$ 7.99** of fee are returned by Memberfy.

In the end, the community's balance is the same as before the sale.

**The same sale, with the fee paid by the organization.** The buyer pays **US$ 100.00**; the sale credits US$ 100.00 − US$ 7.99 = **US$ 92.01**. A full refund returns the **US$ 100.00** to the buyer: **US$ 92.01** come out of the balance, and the US$ 7.99 of fee come back with it. Again, the balance is the same as before the sale.

## Common errors and how to fix them

| What happens | Why | What to do |
|---|---|---|
| The buyer got back more than the **Refund** line took from the balance | The platform fee is returned along with it, and the community only returns what it received | That's expected: the **Refund** line equals the **Sale** it returns |
| The available balance dropped without a payout | A refund or a dispute went into the statement | See **Latest Transactions** |

## Frequently asked questions

**Does Memberfy return the platform fee in a refund?**
Yes. The buyer gets back the full amount they paid, the platform fee is returned along with it, and the community only returns the part it received.

**What if the buyer paid the fee?**
The buyer gets back everything they paid, fee included. Only the price comes out of the community's balance, which is what the sale credited.

**And in a dispute?**
The platform fee is not returned: the disputed amount comes out of the community's balance.

**How do I avoid disputes?**
Use clear product names (that's what shows on the card statement) and answer refund requests quickly: an agreed refund is better than a dispute at the bank.

## Related

- [Balance and statement](/pagamentos/saldo-e-extrato)
- [Platform fee](/pagamentos/taxa-da-plataforma)
- [PIX, boleto and card](/pagamentos/metodos-de-pagamento)