How to Dispute a Chargeback

There are times when you think you’ve done everything possible to satisfy a customer and you still end up with a chargeback. Of course, it’s important to understand that you don’t simply have to eat the loss. Depending on the reason for the chargeback, a merchant — including online retailers affiliated with Doba — absolutely has the right to rebut the customer’s chargeback claims with evidence proving the charge was indeed legitimate. This process is often referred to as a chargeback representment and it’s a process with which I suggest all online retailers become familiar.

So how do you actually re-present a chargeback after receiving one? Here are some important tips for you to keep in mind:

• Become familiar with your chargeback rights for settling such disputes. These rights differ between each major card brand; however, your merchant processor should have all the information you need to understand your rights across the board.
• Keep accurate transaction records at all times and make sure you have an internal system in place that allows you to find those records quickly and efficiently whenever they’re needed. You’ll need this information to build your evidence during the representment process.
• Handle valid customer complaints and payment disputes promptly and issue credits due as quickly as possible. Quality customer service is the best proactive defense against receiving a chargeback in the first place.
• Respond to the chargeback with your representment evidence as quickly as possible.  All chargebacks will have a deadline by which you’ll need to have your representment submitted. Typically, this period is a month from the time the dispute takes place, but this can vary by processor or card type.
• Answer all points made by the customer in the chargeback dispute. Your representment will more likely be successful if you can present a valid response to all parts of the customer’s complaint. On the other hand, resist the urge to pack in as much evidence as possible. More is less in these cases. Create an easy to read and simple presentation that is straight to the point and addresses the issue at hand. Remember that the bank agent will be the judge in this dispute, and the more clear you make your case, the better chance you have of recovering the disputed funds.

Whenever possible, present proof that the cardholder was the individual who made the purchase. Such examples of proof include:

• AVS (Address Verification Service) and CVV (the three-digit security code) response codes
• Proof of postage or delivery, such as online tracking numbers
• A copy of the original product description, including any photos
• Proof that you resolved the issue by providing a replacement or refund, including all types of correspondence with your customer
• Any agreements signed or accepted at the time of purchase
• Proof of the return policy communicated to the buyer at time of purchase

Once you’ve gathered and submitted all of the representment evidence for the disputed charge, it will be turned over to credit card representatives. They’ll compare what the cardholder claims to what your evidence presents.  They will also ensure your evidence meets all the required guidelines before even being considered. It’s important to understand that even though you might think you had undeniable proof that the charge was properly authorized, the bank agent may see it from their cardholder’s point of view.

In short, you shouldn’t expect to win every chargeback you represent.