What is a protest?
A protest happens when a member disputes a card payment with their bank or card issuer, and the issuer reverses it while it investigates. Banks and card networks call this a chargeback; in ClubOS it's called a protest. They are the same thing.
Members usually dispute a charge for one of these reasons:
They don't recognize or didn't authorize the charge (fraud)
They believe they canceled their membership
They say they didn't receive the product or service
ClubOS Finance handles each protest as it comes in. Each card brand (Visa, Mastercard, Discover and American Express) has its own chargeback rules, so what you see on the member's account depends on the card used.
How a protest works: Visa, Mastercard and Discover
For these three card brands, the disputed payment comes out of your remit, is defended by ClubOS Finance, is usually returned 1–2 days after the defense and then waits on the card issuer's final decision.
Visa, Mastercard and Discover protest lifecycle
Two terms you'll see on the member's account:
- Bad check: removes the disputed payment from the member's account, makes it an outstanding balance and deducts it from your remit.
- Conditional credit: puts the payment back on the member's account and returns the money to your remit while the issuer reviews the case.
If the protest is won, the conditional credit stands and nothing else changes. If it's lost, a second bad check posts and the payment is outstanding again.
American Express
American Express runs its own dispute process, and it differs between the US and Canada.
American Express (US)
- Amex holds the disputed money itself while it reviews the case.
- Because of this, you may see the bad check and conditional credit repeat up to three times on the same payment before a decision. If the protest is lost, a final bad check follows.
- This is how Amex handles disputes. It does not mean that a member protested the same payment more than once.
- US Amex protests are posted by hand, so they can take a little longer to appear on the account than other card brands.
American Express (Canada)
- Canadian Amex disputes are handled directly with Amex, and nothing posts to the member's account while the case is open.
- If the protest is won, the account stays as it is.
- If the protest is lost, you will see a single bad check, and the payment becomes outstanding.
Timing
Protest activity usually posts one business day after our processor reports it, and reports come in on weekdays only.
| Event | Typical timing |
|---|---|
| Bad check posted | About 1 business day after the processor reports the protest |
| Defense of the Protest | Must be done by a deadline set by each card brand, 12–28 days after our processor reports the protest. Usually defended 1–3 days after it's reported when a signed contract is on the member's account. If there's no contract on file, it's defended once the contract is received, if the deadline hasn't passed. |
| Conditional credit posted | Usually 1–2 days after the defense |
| Card issuer's final decision | Usually 90–120 days; occasionally sooner |
- Reports arrive Monday through Friday. Monday's report covers Friday, Saturday and Sunday, so activity from late in the week may not be posted until Monday.
- Because of this timing, a member who has protested a payment may show past due one day and current the next. It depends on whether the conditional credit has been posted yet.
Where to see protest activity
The member's payment history is the only place that shows a protest's full lifecycle, start to finish.
| Where | What it shows |
|---|---|
| Payment history (member account) | Every step in order: the payment, bad check, conditional credit and, if lost, the second bad check |
| Account notes | An automatic bad check stamp and a note from ClubOS Finance about the protest |
| Remit reports | Each step in the remit cycle when it posted; one protest usually spans several reports |
| Analytics | One month at a time, so a protest that crosses months won't appear in one view |
Seeing two bad checks for a single protest is expected when a protest is lost: one at the start and one after the decision. The conditional credit in between returns the money to your remit, so the net result is a single deduction, not two.
If a protest is lost
- When a protest is lost, the payment becomes an outstanding balance on the member's account, and collecting it is up to you.
- The balance shows as past-due dues or an outstanding rec ID payment, in statement status.
- You can follow your usual process for unpaid balances, including sending the account to collections.
- A word of caution: charging the same card again for the disputed amount often leads to a new protest on that charge. Consider asking the member for a different payment method instead.
Tips to strengthen your defense
Good records on file are the best support ClubOS Finance has when defending a protest for you.
- Keep signed membership agreements on file for every member.
- Send contracts promptly when Finance asks. If no contract is on the member's account, the protest can't be defended until we receive it, and each card brand's deadline is 12–28 days after the protest is reported.
- Make sure check-ins are recorded, since attendance history shows the members have used the service.
- Keep payment history accurate and up to date.
- Document cancellations clearly, including the date and how the request came in.
These records matter most when a member claims a charge was fraud. Disputes based on a cancellation claim are harder to win, because card issuers tend to side with their cardholder.
Frequently asked questions
Why was money taken out of my remit? When a protest comes in, the disputed payment comes out of your remit while the card issuer reviews it. It usually comes back as a conditional credit 1–2 days after ClubOS Finance defends the protest.
Why does a member show past due one day and current the next? The bad check posts first, then the conditional credit puts the payment back. Which status you see depends on whether the conditional credit has been posted yet.
Why does one payment show several bad checks and credits? If the member paid with a US American Express card, this is Amex's normal process. Amex can cycle the funds up to three times before it decides. It is not the member disputing the payment again.
How long until a protest is decided? Usually 90–120 days after the protest is filed. Card issuers can decide sooner, but it's rare.
Are there fees for protests? There is no separate protest fee. Your standard processing fee applies each time a payment posts, which includes the original payment and the conditional credit.
Can I still collect if the protest is lost? Yes. The payment becomes an outstanding balance on the member's account, and you can collect it under your own policies. See "If a protest is lost" above.
Who do I contact with questions about a specific protest? Contact ClubOS Support, and they will work with Finance to investigate it.
