Record GoCardless chargebacks

This article explains how to deal with a GoCardless chargeback in FreeAgent.

A chargeback, also referred to as a reversal or a claim, is when debit card funds, credit card funds or Direct Debit funds used to make a purchase are returned to the buyer.

The GoCardless integration in FreeAgent doesn’t currently track or manage chargebacks that are requested by the customer. However, you can follow the steps below to create a credit note and enter manual bank transactions to show the impact of the chargeback in FreeAgent.

1. Create a credit note

First, create a credit note in the FreeAgent for the chargeback. You can either create a credit note from scratch or generate a credit note from the original invoice.

2. Enter manual bank transactions

Then, enter three manual bank transactions in the business bank account in FreeAgent all dated on the same day, to make the necessary adjustments. Please note that you won’t be able to enter manual bank transactions in the GoCardless bank account in FreeAgent.

The transactions needed for the chargeback are as follows:

• Money out: ‘Type - Credit Note Refund’ and select the credit note you created. 
  
  This would be for the full amount of the credit note to ensure no balance is outstanding.
   
• Money in: ‘Type - Refund’ and ‘Category - Bank/Finance Charges’. 
  
  This would be for the amount of fees that have been refunded due to the chargeback
  .
• Money in: ‘Type - Transfer from Another Account’ and select the GoCardless bank account. 
  
  This would be for the amount of the credit note minus the fees charged by GoCardless. This will automatically create a corresponding money out transaction in the GoCardless bank account in FreeAgent to ensure that the account balance is correct.

These manual bank transactions should make sure that the bank account balances in FreeAgent match your actual bank account and GoCardless bank account.