When you sell products on Rootsy, your earnings may be affected by customer refunds, payment disputes, and chargebacks.
Rootsy uses Stripe to support marketplace payment processing. If a transaction is refunded or disputed, the amount available for seller withdrawal may change.
This guide explains how refunds, chargebacks, and disputes work, what sellers are responsible for, and how these situations can affect earnings and payouts.
1. Understanding Refunds, Chargebacks and Payment Disputes
Although these terms are related, they refer to different processes.
Refund
A refund occurs when all or part of a customer's payment is returned through the authorized marketplace payment process.
Chargeback
A chargeback occurs when a customer disputes a card transaction through their bank or card issuer.
Payment Dispute
A payment dispute involves a disagreement about a payment or transaction. Depending on the circumstances, it may be handled through Rootsy's Resolution Centre or a payment provider.
Each situation may have different requirements, deadlines, and financial consequences.
2. How Refunds Affect Seller Earnings
When Rootsy approves a customer refund, the associated transaction may be adjusted.
Depending on the circumstances, the refund may affect:
Earnings associated with the original sale.
Funds pending payout.
The seller's available withdrawal balance.
A future seller payout.
Previously paid amounts that require adjustment.
For example, if a customer receives a full refund for an eligible product purchase, the seller may no longer be entitled to retain the earnings associated with that refunded sale.
The exact financial adjustment depends on Rootsy's policies, the transaction, and applicable payment-processing arrangements.
3. Full Refunds vs. Partial Refunds
Rootsy may authorize a full or partial refund depending on the circumstances.
Full Refund
A full refund generally returns the applicable refundable purchase amount to the buyer.
Examples may include:
A seller cannot fulfil an order.
An incorrect product was supplied.
A defective product qualifies for a full refund.
Another situation justifies a full refund under Rootsy's policies.
Partial Refund
A partial refund returns only part of the applicable purchase amount.
Examples may include:
A qualifying issue affects only part of the order.
One item in a multi-item order is refunded.
Rootsy determines that a partial refund is an appropriate resolution.
The seller's earnings may be adjusted according to the amount refunded and the applicable terms.
4. Understanding Rootsy's Return and Refund Process
Rootsy's standard return-request window is generally 14 days from delivery, subject to product-specific conditions, marketplace policies, and applicable legal rights.
Sellers must respond to return requests within 48 hours.
When a return or refund request is received:
Review the original order.
Check the buyer's stated reason.
Review the applicable return conditions.
Examine supporting evidence.
Respond within the required timeframe.
Follow Rootsy's authorized resolution instructions.
Rootsy may review or override seller return restrictions in qualifying circumstances.
Approved refunds are generally processed within 14 business days of approval, although the time needed for funds to appear in the buyer's account may vary.
5. Who Is Responsible for Refund Costs?
Responsibility depends on why the refund is required.
A seller may be responsible when a refund results from:
An incorrect product.
A defective product.
A materially inaccurate product description.
Seller-related fulfilment failures.
Unsafe or prohibited products.
Other seller-caused problems.
For eligible buyer-preference returns, the buyer may be responsible for applicable return shipping or a properly disclosed $15 CAD Return Processing & Logistics Fee.
Rootsy determines the applicable refund and cost allocation according to its policies and the circumstances.
6. How Seller-Caused Cancellations Affect Payouts
A seller-caused cancellation occurs when an order cannot be completed because of a seller's action, error, inaction, or inability to fulfil.
Examples include:
Incorrect inventory information.
Selling unavailable products.
Failure to prepare or ship an order.
Refusal or inability to fulfil an accepted order.
Where a seller cannot fulfil an order before delivery, the buyer generally receives a full refund for the affected item or order, including applicable taxes and shipping amounts charged for that item.
Rootsy's Refund & Dispute Resolution Policy also provides for a potential $15 CAD Seller-Caused Cancellation Fee per affected order, plus applicable non-recoverable costs.
Such amounts may affect the seller's account balance or payouts.
7. What Is a Chargeback?
A chargeback begins when a customer disputes a card transaction through their bank or card issuer.
A chargeback may involve a claim that:
The payment was unauthorized.
The purchased product was not received.
The amount charged was incorrect.
The product was materially different from its description.
The transaction otherwise qualifies for a payment dispute.
A chargeback is not the same as an ordinary return request.
The bank, card issuer, or applicable payment provider may review the transaction and evidence before determining the outcome.
8. What Happens When a Chargeback Is Filed?
When a chargeback is filed, Rootsy may take actions permitted under its policies, including:
Suspending related refund processing.
Restricting account access.
Providing transaction evidence to the payment processor.
Temporarily withholding seller payouts.
Reversing applicable seller payouts.
Creating a negative seller balance where the chargeback arises from seller conduct.
These actions depend on the nature of the dispute and the applicable payment arrangements.
Important: A chargeback does not automatically establish that either the buyer or seller is responsible. The outcome depends on the investigation and available evidence.
9. How Chargebacks Can Affect Your Available Balance
A chargeback may reduce the funds available for withdrawal or lead to an adjustment of your seller balance.
For example, if a disputed transaction involves seller-related non-fulfilment, Rootsy may withhold or reverse amounts associated with that transaction according to its policies.
If the adjustment exceeds the seller's available funds, a negative balance may result where permitted under Rootsy's terms.
The specific amount depends on the disputed transaction and applicable costs.
Do not assume that every chargeback produces the same financial adjustment.
10. Can a Chargeback Affect a Payout Already Received?
Yes. Rootsy's policy permits payout reversals or other account adjustments in certain circumstances.
If a payment dispute arises after the seller has received funds, Rootsy may determine that an amount must be recovered or offset against future seller earnings.
The appropriate action depends on the cause of the dispute, applicable terms, and payment-provider procedures.
Contact Rootsy Support if you believe an adjustment has been applied incorrectly.
11. What Evidence Must Sellers Provide?
Rootsy may request documentation to investigate a payment dispute.
Relevant information may include:
Customer order number.
Product name and SKU.
Original product listing description.
Product photographs.
Proof of shipment.
Carrier tracking number.
Delivery confirmation.
Packaging photographs.
Buyer personalization instructions.
Relevant customer communications.
Refund or return records.
For digital products, relevant evidence may include the product description, the file supplied, and available records concerning digital delivery or access.
Provide accurate documentation through Rootsy's authorized support process.
12. How to Respond to a Chargeback Investigation
If Rootsy notifies you about a chargeback:
Locate the disputed order.
Review the customer's reported issue.
Confirm the product and transaction details.
Gather relevant fulfilment records.
Review any tracking or delivery evidence.
Prepare a clear explanation of the transaction.
Submit requested evidence through Rootsy's approved process.
Follow the deadline provided for the investigation.
Payment disputes may involve strict response deadlines.
Important: Respond promptly. Missing an evidence-submission deadline may affect the ability to contest a dispute.
13. What if the Buyer Claims an Order Was Never Received?
If a buyer disputes a payment because the product was not received:
Review the order status.
Confirm whether the item was shipped.
Check the carrier tracking number.
Review available delivery confirmation.
Gather proof of carrier handoff.
Provide relevant evidence to Rootsy Support.
If tracking shows Delivered but the buyer disputes receipt, Rootsy may investigate carrier records, delivery photographs, seller documentation, and other available information.
Do not assume that a Delivered status automatically resolves every dispute.
14. What if the Buyer Claims the Product Was Defective or Incorrect?
If a chargeback involves product quality or accuracy:
Review the original product listing.
Confirm the buyer's selected product and options.
Examine any photographs or supporting evidence.
Review fulfilment and quality-control records.
Identify any seller error.
Cooperate with Rootsy's investigation.
Where the dispute arises from an inaccurate listing, defective product, or seller failure, the seller may be responsible for the disputed amount and related costs.
15. What if a Digital Product Is Disputed?
Digital products may also be subject to payment disputes.
For example, a buyer may claim:
The purchased file was unavailable.
The wrong digital content was provided.
The file was defective or corrupted.
The product was materially misdescribed.
The transaction was unauthorized.
If a digital purchase is disputed:
Review the original order.
Confirm the digital product sold.
Check the downloadable file associated with the listing.
Review available delivery or access information.
Examine the buyer's reported issue.
Provide relevant records to Rootsy Support.
Digital products may be non-returnable for change-of-mind reasons, but this does not eliminate valid payment disputes or applicable consumer rights.
16. Understanding Rootsy's Resolution Centre
When a buyer and seller cannot resolve a dispute, the matter may be escalated through Rootsy's Resolution Centre or approved support process.
Rootsy may examine:
Order and payment details.
Product listing information.
Seller return conditions.
Customer communications.
Shipping and tracking records.
Photographs or videos.
Return inspection records.
Other relevant evidence.
Rootsy may determine a resolution that includes a full refund, partial refund, replacement, return approval or denial, payout adjustment, or another permitted action.
Rootsy's Refund & Dispute Resolution Policy provides for a 30-day informal resolution period before a dispute may proceed to arbitration under the applicable terms, unless the parties agree in writing to waive that requirement.
This informal-resolution provision does not replace payment-provider chargeback deadlines or applicable statutory rights.
17. Can a Seller Disagree With a Refund or Dispute Decision?
If you believe a decision is incorrect:
Review the relevant decision or notice.
Gather any additional supporting evidence.
Identify the specific issue you disagree with.
Contact Rootsy Customer Support.
Request clarification or review through the applicable process.
Rootsy's internal dispute decisions remain subject to applicable legal rights and dispute-resolution terms.
Do not attempt to reverse a marketplace decision through an unauthorized payment or account action.
18. What if a Buyer Requests Both a Refund and a Chargeback?
A buyer may initiate a payment dispute after requesting a refund or while a refund issue is being reviewed.
Rootsy's policy permits certain refund-processing restrictions when a chargeback is filed.
If both processes concern the same transaction:
Review the original order and refund request.
Check any chargeback notification.
Inform Rootsy Support of the overlapping processes.
Provide relevant transaction records.
Follow the approved instructions.
Do not independently issue duplicate refunds.
Duplicate refund requests or payment-dispute misuse may be investigated under Rootsy's policies.
19. What if a Seller Has a Negative Balance?
A negative seller balance may occur when applicable deductions or reversals exceed available earnings.
Possible causes include:
Chargeback adjustments arising from seller conduct.
Refund-related adjustments.
Other amounts owed under the applicable seller terms.
If your seller balance becomes negative:
Review the affected transactions.
Check any refund or dispute notices.
Identify the amounts involved.
Contact Rootsy Support if clarification is required.
Follow any authorized instructions for resolving the outstanding balance.
Do not assume that creating another seller account will resolve an existing financial obligation.
20. Why Might Rootsy Temporarily Hold Payouts?
Rootsy may hold or restrict payouts where permitted under its policies.
Reasons may include:
Unresolved customer disputes.
Chargebacks.
Suspected fraud.
Incomplete verification.
Outstanding financial obligations.
Fulfilment failures.
Marketplace policy violations.
Other applicable compliance or payment risks.
A temporary hold does not necessarily mean that a seller has permanently lost the affected funds.
Contact Rootsy Support for information about the applicable review process.
21. How Multi-Seller Orders Affect Refunds and Disputes
A buyer may purchase products from multiple sellers in the same checkout transaction.
If a refund or dispute concerns only one seller's product:
Rootsy may adjust the affected seller's transaction.
Other sellers' items may remain unaffected.
Shipping amounts may be recalculated.
Discounts and taxes may be adjusted.
Refund amounts may be allocated according to the relevant items and marketplace calculations.
Sellers should provide information only about the products and fulfilment obligations associated with their own stores.
22. How to Reduce Refunds and Payment Disputes
To reduce avoidable disputes:
Maintain accurate product descriptions and images.
Use correct inventory quantities.
Fulfil orders within the applicable preparation timeframe.
Package physical products appropriately.
Provide accurate shipping details.
Maintain proof of carrier handoff.
Check personalization details before production.
Ensure digital files are correct and accessible.
Respond promptly to return and support requests.
Cooperate with Rootsy's authorized resolution process.
Good recordkeeping and reliable fulfilment can help resolve disputes and protect seller accounts.
23. What Happens if Payment Disputes Become Frequent?
Repeated seller-related disputes may result in account action.
Depending on the circumstances, Rootsy may apply:
Warnings.
Payout holds.
Listing restrictions.
Account reviews.
Suspension.
Termination.
Rootsy may also take action where sellers provide false shipment information, repeatedly fail to fulfil orders, sell prohibited products, or refuse to cooperate with investigations.
Frequently Asked Questions
Can a customer refund affect my seller payout?
Yes. An approved refund may reduce available earnings or result in an adjustment to pending or future payouts.
What's the difference between a refund and a chargeback?
A refund is processed through the authorized marketplace payment process. A chargeback is initiated through a customer's bank or card issuer.
Can Rootsy hold my payout during a chargeback?
Yes. Rootsy may withhold or adjust payouts in circumstances permitted under its policies.
Can a chargeback create a negative seller balance?
Yes, where the chargeback arises from seller conduct and applicable deductions exceed available funds.
Am I responsible for chargeback fees?
You may be responsible for the disputed amount and related costs when the chargeback arises from seller conduct, inaccurate listings, failed fulfilment, or defective products.
How long do I have to respond to a chargeback?
Follow the deadline provided in the payment-dispute notification. Chargeback deadlines may differ from Rootsy's 48-hour seller return-response requirement.
What evidence should I provide?
Relevant order records, product descriptions, tracking, delivery confirmation, photographs, and customer communications.
Can I dispute a chargeback decision?
Available review or appeal options depend on the payment provider, dispute outcome, and applicable terms. Contact Rootsy Support for guidance.
What if a buyer requests a refund and also files a chargeback?
Contact Rootsy Support immediately so the overlapping processes can be reviewed and duplicate refunds avoided.
Does a Final Sale classification prevent chargebacks?
No. Final-sale or non-returnable conditions do not prevent all payment disputes or eliminate applicable legal rights.
Can digital products be disputed?
Yes. Digital transactions may be disputed for reasons including non-delivery, incorrect content, defects, or unauthorized payment.
Can Rootsy reverse a payout I've already received?
Rootsy's policy allows payout reversals or adjustments in specified circumstances, including certain seller-related chargebacks.
How long does Rootsy's informal dispute resolution take?
The policy provides for a 30-day informal resolution period before arbitration under the applicable terms, unless waived in writing. Payment-provider deadlines and legal rights remain separate.
Where can I check whether a dispute has affected my balance?
Review the relevant order, withdrawal, payout, or transaction information available in your Seller Dashboard.
Need Help With a Refund or Payment Dispute?
Rootsy Customer Support can assist with payment disputes, chargebacks, refund adjustments, payout holds, and seller balance questions.
Support Centre: https://support.rootsy.ca/support/home
Email: support@rootsy.ca
When contacting support, include:
Your registered store name.
Your seller account email address.
The relevant order number.
The disputed or refunded amount.
A description of the issue.
Relevant shipment or delivery evidence.
Any dispute notice or reference number.
Do not share passwords, one-time verification codes, complete banking information, or payment card security codes.
Rootsy — Stronger Together, Locally Rooted.
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