Process a chargeback in ServiceTitan

 Troubleshooting
Role: Administrator · Accountant · Bookkeeper · Office AdminArea: Payments — Automated Refund Workflow (Payment Collections) · All versions

Before you start

• You need the Create payment refund permission to refund a payment. If you don't have it, contact your administrator.

• Payment Collections and the Automated Refund Workflow must be enabled before you can record a chargeback. Go to Settings > Invoicing > Payment Collections and toggle Automated Refunds Workflow to Active. Payment Collections must already be enabled for your account for this workflow to be available; if it is not, contact your success or implementation manager.

• Set up a payment type labeled "Chargeback" (Settings > Invoicing > Payment and Invoice Types) so chargebacks are easy to track.

• These steps assume the disputed payment was an integrated card payment (for example, ServiceTitan Payments).

Reason 1

There is no dedicated chargeback transaction type, so you record it through the automated refund workflow.

A chargeback happens when a cardholder disputes a charge with their bank and the bank reverses the payment. ServiceTitan does not have a dedicated chargeback transaction type, so you record the chargeback through the automated refund workflow. This creates an offsetting negative payment that puts the balance back on the invoice, so your records match the money the bank withdrew.

1Record the chargeback

Use this as soon as the bank pulls back the funds, before the dispute is resolved.

1. Search for and open the invoice tied to the chargeback.

2. On the invoice, find the payment that was charged back.

3. Click Refund on that payment.

4. For Refund Reason, select Other and enter "Chargeback."

5. In the Amount field, enter the disputed amount (full or partial).

6. For Refund Method, select Process credit card refund outside of ServiceTitan, then click Save.

7. Optional: click Advanced Options to add a memo to the invoice or payment, or to change the date, then click Save.

8. Click Process Refund to record the chargeback.

Caution: The refund item used by the automated refund workflow should not be taxable. If the disputed payment was taxable, enter the pre-tax amount so the refund calculates correctly.

✓ Done · The negative refund payment is recorded and the invoice shows a balance due again, matching the funds the bank pulled back.

2Reconcile the invoice after the dispute is resolved

Use this once the bank settles the dispute. Choose the path that matches the outcome.

• If you win the dispute and can collect again: from the original invoice, click Collect/Apply Payment, create a new payment for the disputed amount, and apply it to the invoice.

• If you write off the unrecoverable amount and the invoice is not yet exported: add a negative task to the invoice for that amount to reduce revenue and AR.

• If you write off the unrecoverable amount and the invoice is already exported: create an adjustment invoice with a negative task for that amount to reduce revenue and AR.

✓ Done · The invoice balance reflects the final outcome — either paid again (dispute won and recollected) or written down (dispute lost).

Contact ServiceTitan Technical Support at go.servicetitan.com/ask with:

• The customer name and invoice number

• The disputed payment ID, amount, and the date of the chargeback

• The refund method you selected and whether the refund processed

• Whether the invoice was already exported to your accounting software

• Which checks from this article you already tried