When you receive a chargeback, it can feel frustrating. You might believe the transaction was legitimate and that the customer's dispute is unfair, or in some cases, even unjust.
| But receiving a chargeback isn’t the end. You have a right to challenge any chargeback by providing evidence. |
This process is called "countering" the chargeback. This article will guide you through the best practices for effectively countering chargebacks and increasing your chances of winning the dispute.
In this article
Understanding the complaint
The first step in countering a chargeback is to fully understand why the customer is disputing the transaction.
Communicate with the customer (when possible)
If you have the customer's contact information, reach out to them promptly and politely.
Ask them directly about the reason for the chargeback.
Sometimes, a simple misunderstanding can be resolved through clear communication.
However, in some cases (e.g. suspected fraud), contacting the customer may not be advisable or possible. In this case, proceed to the gathering information stage.
Gather information
Collect all relevant details about the transaction, including:
The date and time of the purchase
The products or services purchased
The amount of the transaction
Any communication with the customer
Having a complete picture will help you assess the validity of the chargeback.
Submitting evidence
If you believe the chargeback is invalid, you'll need to submit evidence to support your case.
Gather strong evidence: The type of evidence you'll need depends on the reason for the chargeback, but could include:
Receipts or invoices
Shipping confirmation and tracking information
Proof of delivery
Customer agreements or contracts
Records of customer communication
Photographs or videos of the product or service
Be clear and concise: When submitting your evidence, provide clear and concise explanations. Highlight the key information that supports your position.
Submit everything at once: You only have one opportunity to submit evidence, so make sure you include everything relevant.
| Check the Respond by column in your chargeback list for the deadline to submit your evidence by. |
Checklist: what to include in your chargeback counter
I. Basic Information
Transaction Details:
Transaction Date: The date the transaction occurred.
Transaction Amount: The disputed amount.
Order Number/Invoice Number: Unique transaction identifiers.
Customer Information:
Customer Name: Full name used in the transaction.
Customer Contact Information: Email and phone number.
II. Business Response
Summary Statement: A concise explanation of why the chargeback is unjustified.
Timeline: A step-by-step recollection of the transaction and any customer communications.
III. Documentation and Evidence
Proof of Delivery or Service:
Delivery Confirmation: Tracking numbers, shipping documents, delivery receipts.
Service Completion: Signed agreements, completion confirmations, or usage logs.
Customer Correspondence:
Emails/Chats: Screenshots or copies showing customer agreement or satisfaction.
Support Tickets: Records of customer service interactions.
Transaction Records:
Receipt or Invoice: Detailed breakdown of the purchase.
Proof of Payment: Bank statements or payment processor records.
Terms and Conditions:
Terms of Service/Return Policy: Highlighted sections agreed to by the customer.
Product/Service Description: Clear description presented to the customer.
Refund Policy: Clearly presented at purchase with customer acknowledgment.
Legal and Regulatory Compliance:
Compliance Records: Documentation showing adherence to relevant regulations.
Customer Agreement/Consent: Proof of agreement to terms, privacy policy, etc.
Additional Supporting Information:
Fraud Detection: Evidence of anti-fraud measures (AVS, CVV checks, etc.).
IV. Conclusion
Reaffirmation of Dispute: A clear restatement of why the chargeback should be overturned.
Contact Information: Your contact information for inquiries.
Submission: Ensure the rebuttal is well-organized and clearly labeled.
Next steps
To learn how to reduce the number of chargebacks your business receives, see our article on Preventing Chargebacks.
FAQs
What kind of evidence is most effective for countering a chargeback?
The most effective evidence is documentation that directly addresses the customer's reason for the dispute. For example, if the customer claims they never received the product, proof of delivery is crucial.
We recommend going over the checklist provided above, ensuring the items that are most relevant to your case are included.
How long does the chargeback process take?
Chargebacks are a potentially lengthy process. The overall resolution can take weeks or even months, especially if the dispute is contested or escalated to arbitration.
As a reference point:
The initial chargeback stage takes 30 to 45 days (once evidence has been submitted).
If the chargeback enters arbitration, it could take anywhere from 1 to 6 months.
These timelines are why it’s important to know what you can do to proactively prevent chargebacks.