How to Dispute a Chargeback as a Merchant

To dispute a chargeback, gather documentation such as receipts, order confirmations, delivery tracking, signed contracts, and communication with the customer.

Next, submit your evidence to your payment processor or acquiring bank within the specified deadline (usually 7–30 days). Include a concise, factual explanation showing why the charge was valid. Make sure all records are organized and easy to review to strengthen your case.

Track the dispute using your processor’s tools and respond promptly to any additional requests. Following these steps increases your chances of winning the dispute and recovering the funds.

Review the Chargeback Notification

When you receive a chargeback notice from your payment processor or acquiring bank, the first step is to carefully review all the details.

The notification will include:

• Reason code — explains why the customer initiated the chargeback (e.g., fraud, product not received, or duplicate charge).
• Transaction details — date, amount, and cardholder information.
• Deadline — the timeframe for submitting your response and supporting evidence.

Example: If the chargeback reason code is “Product Not Received”, focus your response on providing proof of delivery such as tracking information, signed delivery receipts, or customer acknowledgments.

Tip: Always respond before the deadline, as missing it means automatic loss of the dispute.

Gather Strong Supporting Evidence

To successfully dispute a chargeback, you must provide clear and compelling evidence that the transaction was valid and the customer received what they paid for.

Include documentation such as:

• Sales receipts or invoices — showing what was purchased and the agreed price.
• Proof of delivery — tracking numbers, shipping confirmations, or customer signatures.
• Communication records — emails, chat logs, or text messages confirming order details or customer satisfaction.
• Refund and cancellation policies — demonstrating that your terms were visible and accepted at purchase.
• Customer agreement or contract — for services or recurring payments.

Example: For digital services, provide screenshots of user activity, login timestamps, or service usage reports to confirm that the service was accessed.

Submit a Detailed and Organized Response

After collecting your evidence, submit your chargeback rebuttal through your payment processor’s portal.

Your response should include:

1. A concise cover letter summarizing your case — clearly state why the chargeback is invalid.
2. Organized documentation — label each file clearly (e.g., “Invoice #1234,” “Delivery Confirmation,” “Email with Customer”).
3. Chronological order — present your evidence in the order the transaction occurred.

Example: If the reason code is “Service Not Provided,” your rebuttal could start with your signed service agreement, followed by proof of completed work, and then the client’s acknowledgment of completion.

Monitor the Dispute Status

Once your response is submitted, monitor the progress through your payment processor’s dashboard. The issuing bank will review your evidence and make a decision.

• If you win, the funds are returned to your account.
• If you lose, you may still have the option to appeal depending on your processor’s policies.

Tip: Keep communication records from your processor — they may request additional information during the review period.

Prevent Future Chargebacks

Winning a dispute is good, but preventing chargebacks altogether is even better.
Here are some best practices to reduce future disputes:

• Use clear billing descriptors so customers recognize your business name.
• Always provide prompt order confirmations and receipts.
• Implement fraud detection tools to flag suspicious transactions.
• Offer excellent customer service and clear refund policies to resolve issues before customers resort to chargebacks.

Example: If your business provides online subscriptions, send renewal reminders to avoid claims of “unauthorized” recurring charges.

Simplify Payments and Reduce Chargebacks with DepositFix

Managing chargebacks manually can be time-consuming. With DepositFix, you can streamline payment collection, automate receipts, and securely store transaction records for easy dispute resolution.

DepositFix helps you:

• Maintain detailed payment history and customer data.
• Send branded invoices and receipts automatically.
• Reduce chargeback risks through transparent billing and payment confirmations.
• Accept payments securely via credit card, ACH, or recurring billing.

DepositFix integrates seamlessly with your website or CRM, helping you focus on running your business while keeping payment disputes to a minimum.