Chargebacks & Disputes FAQ

What is chargeback representment?

Dispute representment allows merchants to dispute a chargeback. You must collect and provide evidence and any other information that proves the transaction was approved and completed properly.

If the merchant wins the dispute representment case, the issuer reverses the chargeback and the merchant is refunded.

What evidence is required for a successful dispute representment?

Because the dispute representment process is the merchant’s chance to dispute a chargeback, this process must not be taken lightly. To successfully dispute a chargeback, you must provide a long list of items of compelling evidence that clearly demonstrate the transaction was valid.

  • Chargeback rebuttal letter: This letter must accompany your representment evidence and is essentially a summary of your evidence proving that the transaction is valid.

The chargeback reason code is important in determining the evidence you need to provide to successfully win the chargeback dispute. Each major credit card company has its own list of chargeback reason codes that describes the chargeback. Ensure you’ve fully reviewed the chargeback reason code before writing your chargeback rebuttal letter.

Be prepared to provide the following types of evidence along with your chargeback rebuttal letterA copy of the transaction receipt or order form. Make sure this document is easy-to-read and clearly legible.

– A copy of your refund/return policy. Ideally, you can print this off your website, or it should be included on the front or back of the transaction receipt or order form.

– All copies of communication with the customer who has filed the chargeback.

– Evidence that the product was delivered to the correct address, plus the date of delivery. Ideally, you have requested a signature and have this evidence on file.

– Customer transaction history that shows (if applicable) previous sales history with the customer.

– Evidence that proves the transaction was approved and authorized by the cardholder.

– The description of the product or service from your website. Ideally include a photo of the product in question with your evidence.

– Tracking numbers to indicate that the product was delivered.

– If the customer picked up the item at your store or at another pick-up location, provide evidence of this product delivery. For example, a copy of the customer signature on a receipt or a confirmation form.

– For digital downloads, include proof of download including the IP address to which the product was delivered and the date and time of the download.

As you can understand, you must prove that the transaction was approved and authorized by the customer/cardholder. To make it easier to collect your dispute representment evidence, we suggest you have a system in place that ensures this evidence is easily available.

The dispute representment process is time sensitive. Typically, you have only seven days from time of notification of the chargeback to respond with a representment.

What are some dispute representment tips?

To succeed in your dispute representment, we recommend you do the following:

  • Act quickly: Make sure you can collect your evidence quickly and build a successful case with minimal time delays.
  • Understand the rules: the only way to win a dispute representment is to fully understand how the process works.
  • Compelling evidence: The entire success of your dispute representment depends on your evidence. Ensure you have a system in place that makes it straight-forward for you to quickly find and compile the required evidence.
  • Know the reason codes: Evidence that you provide is mandated by the chargeback reason code. Read and understand the code description and respond accordingly.
  • Know your customers: The more data you can track and analyze with respect to your customer transactions, behaviors and history, the better you’ll be able to quickly identify risk areas for chargeback fraud and high-risk transactions.
  • Clear billing data: Often, chargebacks occur when the customer doesn’t recognize the credit card charge. Use a system that supports clear descriptors, your company name, and even a phone number for easy contact.
  • Know your chargeback ratio: You need insight into your chargeback ratio so you can better understand how and why chargebacks are happening. This information allows you to improve your internal processes, customer communication, and website content to prevent future chargebacks.

Your expertise is in running your business and not in successfully disputing chargebacks. Working with chargeback experts and taking advantage of solutions that make it easier to collect the required evidence can make the difference between a successful representment and a loss.

Don’t let these common merchant challenges stop you from a successful dispute representment:

  • Time consuming and expensive. Because fighting a chargeback in-house is time consuming and expensive, many merchants end up not doing everything they can to win the dispute. This can cost you more money and time – not to mention the costs associated with the chargeback.
  • Not fighting back. Chargebacks don’t need to be a cost of doing business. In fact, it’s better for everyone involved when you choose to dispute a chargeback. The entire industry needs to stand up to chargeback fraud.
  • Making mistakes. There is no room for error in your dispute representment case. You’ve got a limited amount of time, and this can cause some merchants to skip vital steps and neglect to include the mandatory evidence.

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