Understanding Charge Disputes
Under the Fair Credit Billing Act, when a creator is charged through Melon, they have 60 days to dispute the charge with their bank.
When Melon processes a charge, we deduct the Melon fee and transfer the remaining funds to the agency. However, if a creator disputes the charge, the bank forcibly voids the charge, refunding the creator while the agency retains its portion. This results in a net loss for Melon.
Resolution Process
To address this, we will now automatically notify both the creator and the agency when a dispute occurs. When a dispute of this type arises, we will notify all parties and issue a reimbursement charge for the agency's portion of that transaction.
Preventing Disputes
Agencies should cancel a creator’s split in a timely manner if they decide to part ways, ensuring they are not charged unexpectedly.
We will send creators a notification emphasizing that charges with the bank statement: "Melon paid {Your Agency}!" are from us and should not be disputed. If they believe a charge is incorrect, they should submit a support ticket so we can resolve it without issues from our payment processor.
If you have any questions, please email [email protected].
Keep Pumpin' — The Melon Team