The right of chargeback representment is one of the most important rights you have as a merchant. Too many merchants take this right for granted and do not exercise when they should. We want to provide you with the knowledge and power you need to successfully win your chargeback disputes.
The more merchants who dispute chargebacks, the stronger the right of representment becomes for merchants. By disputing unwarranted chargebacks, you’re telling issuers, acquirers, and fraudsters that you’re not going to be a victim to unnecessary revenue loss and costly fees.
It is possible to dispute and win a chargeback. However, we’re not going to sugarcoat the chargeback dispute process. It’s not easy and it’s not simple. With some focused knowledge and the support from the right tools and technology, it is possible to successfully dispute chargebacks.
What Is a Chargeback Dispute?
A chargeback dispute, or representment, is your right to dispute a chargeback filed against you. When you have solid evidence that the cardholder’s chargeback is invalid, you have the right to challenge or dispute this chargeback.
Disputing a chargeback does take effort on your part, but when you’re using solutions that provide customer insights or open the lines of communication with the issuer or customer, it can be much easier to successfully dispute a chargeback.
Why Pursue Chargeback Representment?
Chargeback representment is your sole right of defense against fraudulent chargebacks. Don’t be overwhelmed by the chargeback representment process; read on to learn how the process works and what you have to do. You can contact us with any questions you have about the chargeback dispute process.
Remember, when you win your chargeback dispute, you’re preventing costly chargeback fees, reducing your chances of being placed in a credit card chargeback management program, and you’re recovering the revenue lost to the fraudulent chargeback.
The Chargeback Dispute Process
Unfortunately, the chargeback dispute process, more often than not, starts without you even knowing about it. Because of the broken chargeback communication process, you don’t have a chance to interact with the cardholder and prevent the chargeback from being filed. As a result, you only learn of the chargeback when you’re notified by your acquirer. By this time, the issuer has already provided the cardholder with a refund. Now it’s up to you to decide if you want to dispute the chargeback.
You have to act fast – there isn’t much time between being alerted of the chargeback and the close of the chargeback dispute window. To dispute the chargeback, do the following:
- Check the reason code. Every chargeback is assigned a unique issuer reason code. Every card association has its own list of reason codes. These reason codes explain why the chargeback was filed, how much time the merchant has to dispute the chargeback, and details the evidence required to dispute the chargeback.
- Know the timeline. Double-check the amount of days you have to file the chargeback dispute. Don’t delay in making a decision about proceeding with the chargeback.
- Write a chargeback rebuttal letter. The chargeback rebuttal letter is key to disputing the chargeback. This letter is essentially a summary of the compelling evidence you’re providing to dispute the chargeback. When writing the chargeback rebuttal letter, remember to keep in mind the chargeback reason code and the evidence requirements.
- Collect your evidence. Depending on the reason code, you may need to provide a range of evidence. Make sure you can easily access your refund/return policy, proof of delivery, confirmation emails, any customer service communication, customer transaction history, proof of authorization, product/service description from your website, tracking numbers, proof of receipt of product, proof of download, etc. Again, this evidence depends on the reason code; however, you should have a solution in place that enables you to easily track and collect this information.
If at any time during this process, you have questions or are hesitating about taking action – contact us. We do not want you taking the chargeback dispute process lightly – when done right, you can win your chargeback disputes.
Learning More About Chargeback Disputes
Refer to these Verifi resources to learn more about chargeback disputes, merchant chargeback rights, and solutions to help win chargeback disputes.
- Understanding Who Is Involved in the Chargeback Process
- Empowering Consumers to Prevent Disputes
- Need to Know: Merchant Chargeback Rights
- Verifi’s Premier Chargeback Revenue Recovery Service
- Guide to Chargeback Management
Browse our Resource Center and Knowledge Base for more chargeback resources. You can contact us with any of your questions – we’re here to help.