How to Write a Chargeback Rebuttal Letter

The cold hard truth is that chargebacks can be the undoing for many merchants. Either due to inexperience with best practices that result in unnecessary chargebacks, attacks by professional fraudsters, or simply out-of-date chargeback management principles – chargebacks happen at an alarming rate.
All too often, merchants get caught up in the big picture, focusing on omnichannel security or m-commerce fraud prevention, or constantly testing the latest in fraud prevention technology. While these measures are vitally important, merchants must also take the necessary steps to prevent chargebacks.
The chargeback rebuttal letter is often left to the last minute or worse, completely forgotten. Merchants have very few lines of defense once a chargeback has been filed and the onus is on them to contest the dispute as an important line of defense against fraudulent chargebacks. Do not underestimate the value of a well-written and researched chargeback rebuttal letter.
The Chargeback Rebuttal Letter Matters
It’s important to begin by recognizing a few key facts about the complicated chargeback system:

  • The chargeback process is deeply flawed
  • Most cardholders bypass the merchant and contact their bank first
  • Banks have limited information at to validate the sale and to respond accordingly

This flawed chargeback management system frustrates even the most proactive merchants and leaves the chargeback rebuttal letter as one of the best ways to defend and win a chargeback dispute.
The Keys to A Successful Chargeback Letter
A successful chargeback rebuttal letter comes down to having the right resources in place that allow merchants easy access to the information and facts about the disputed charge.
Time is not on the side of the merchant when it comes to building and presenting the response. Using a solution that monitors purchase data, tracks payment and delivery details, and allows direct insight into order history gives merchants the timely and detailed data they need to write the chargeback rebuttal letter.
The ability to win a chargeback dispute comes down to the compelling evidence that supports how and why the chargeback is unwarranted. Compelling evidence can include:

  • Copy of the refund/return policy
  • Proof of cardholder approval for the purchase
  • Confirmation emails/transcripts with the cardholder to prove the purchase
  • A clear copy of the sales receipt, invoice or order form
  • Delivery details, including the tracking number, signature upon receipt, and delivery time/location
  • Proof that the customer lives or works at the delivery address
  • Photos, descriptions, etc. that can prove the purchase matches the description provided
  • Indications that previous transactions from the same IP address, email address, physical address or telephone number were undisputed
  • Evidence of the customer’s IP address and the download time and date (if a digital service)
  • Proof that someone related to the customer could have made the purchase with the customer’s card

To be effective, the compelling evidence must leave no doubt that the cardholder authorized the purchase and received delivery. The only way to do this is to have the appropriate payment solutions in place to address everything that results in a chargeback.
Chargeback Management Success
Realizing chargeback management success is quite possible. However, this success requires a thorough understanding of your sales, payment, and authorization processes.
It takes a cohesive and connected approach to payments processing. Knowing you have the best solutions for your unique process will enable you to realize chargeback management success.
Learn about Verifi’s payment solutions, including Order Insight and our Chargeback Revenue Recovery Service. Be sure to visit our Resource Center and Knowledge Base to arm yourself with the best information possible in the defense against chargeback fraud and losses.