How to Deal with a Chargeback Request

A chargeback request is a real burden to a merchant. A high number of chargebacks have negative effect on your business, as they may damage your business raputation.

To reduce the number of unjustified chargeback requests, you need to know how to deal with them.

  • Accepting a chrgeback

Making mistake is human, so if you know that you have made a mistake and accidently charged your customer with a incorrect dollar amount, accepting the chargeback is the most honourable thing to do. It will save your time, money and reputation, and we all know that having a good reputation will attract to your business more and more customers.

  • Objecting a chargeback

When your customer initiates a chargeback, you need to instantly contact them and try to convince them to withdraw a chargeback request and initiate a refund instead. If so, you will be obligated to return only the funds without paying a chargeback fee, which can be quite an amount of money.

If you couldn't settle with your customer and you still think that a chargeback is groundless, you need to prove that the goods or services were provided correctly, as the burden of proof lies with you. To prove your innocence, you should react very quickly, as there is a certain time limit for a response.

At this point you need to provide the bank with the best documentation you have. What documents are needed to dispute a chargeback depends mostly on a chargeback reason:

  • The delivered goods are damaged or different than described on the merchant’s website; the goods were not delivered:

The copy of the description of the ordered products or services, which was accessible for the customer, information whether the customer contacted the merchant in that matter and how did they resolve the problem; information about the shipping company and the shipping method; a signed Proof of delivery – a confirmation that the goods were delivered, or that the service was provided.

  • The products were returned but a refund was not executed

A confirmation that a refund was executed; a written statement that the customer didn’t return the products, or that the merchant did not accept the return or the cancellation

  • The credit card was charged without a credit card holder’s approval

Any kind of document that describes the transaction and any of the card holder’s data, for example, card holder’s information, address…

However, the circumstances in every case are very individual and the acquirer consider every case on  individual facts. There is never a predictable outcome of a chargeback dispute. That’s why you need to do everything to prevent a chargeback request, already in the beginning.