Winning a chargeback dispute requires a combination of preparation, understanding the chargeback process, and presenting compelling evidence to support your case. Before diving into the specific steps, let’s first understand the basics of the chargeback process.
Chargeback: A chargeback is a way to reverse a payment made by a debit or credit card. It’s a request made by a cardholder to their bank or credit card company to reclaim money from a merchant.
When to request a chargeback?
- You didn’t receive the goods or services you paid for
- The goods or services were faulty, counterfeit, or defective
- You were charged the wrong amount or twice
- You were charged for a repeat payment after canceling a subscription
- You did not authorize any payment or the card was fraudulently used
How to request a chargeback?
- Contact your bank or credit card company
- Discuss your situation
- If possible, find details on their website about disputed transactions or chargeback claims
- If you can’t find it, contact your card provider and tell them you want to use the “chargeback scheme”
Chargeback time limit
The time limit for filing a chargeback varies depending on the payment processor, typically ranging from 60 to 120 days. However, this can also be influenced by several other factors, such as the nature of the product/service or the specific terms of the purchase. Engaging professional experts, like Chargeback Specialist, can help businesses navigate these complexities to achieve the best possible outcomes.
A Step-by-Step Guide to win more Chargebacks:
1. Understand the Chargeback Reason Code
Each chargeback comes with a reason code provided by the card issuer. It explains why the customer filed the dispute (e.g., fraud, goods not received, or defective products). Shopify provides this information in your chargeback details.
- Fraud: The customer claims the purchase wasn’t authorized.
- Product Not Received: The customer claims they didn’t receive the product.
- Product Not as Described/Defective: The customer claims the product was damaged or not as promised.
- Recurring Billing: The customer disputes recurring charges they didn’t expect or authorize.
Understanding the reason code will help you tailor your response.
2. Review the Order Details
Log into your Shopify dashboard and carefully analyze the disputed order. Gather the following:
- Order number, date, and payment details.
- Customer’s IP address and geolocation at the time of the purchase.
- Shipping address and tracking information.
- Communication history with the customer (emails, chats, etc.).
- Any proof of customer consent (terms of service, checkboxes, etc.).
3. Gather Compelling Evidence
You’ll need to provide evidence to support your case. The type of evidence depends on the chargeback reason:
For “Fraudulent Transactions”:
- Proof of delivery to the billing or shipping address.
- IP address and geolocation at the time of the order.
- AVS (Address Verification System) or CVV match results.
- Customer email or communication confirming the order.
For “Goods Not Received”:
- Tracking information showing the product was delivered.
- Proof of signature upon delivery (if available).
- Communication history where the customer acknowledges receipt.
For “Product Not as Described/Unacceptable”:
- Photos of the product as shipped.
- The product description from your website or store.
- Return policies clearly communicated on your site.
- Any communication with the customer resolving the issue.
For “Subscription/Recurring Billing”:
- Evidence of subscription terms and customer consent.
- Communication where the customer agreed to the charges.
- Proof of cancellation policies shared with the customer.
4. Respond Promptly
You have a limited window to respond to the chargeback (typically 7-30 days). Most of the payment processors allows you to submit your evidence directly through its platform.
Steps:
- Login to your payment dashboard.
- Click on Orders, then find the disputed transaction.
- Review the chargeback details.
- Upload your evidence and write a clear, professional rebuttal statement.
- Be concise but thorough.
- Focus on facts and avoid emotional language.
5. Write a Strong Rebuttal Statement
Your rebuttal should include:
- A summary of the situation.
- Evidence supporting your case.
- An explanation of your policies (if relevant).
For example:
“The customer placed this order on [date] and provided a billing address that matched the card information. The product was shipped on [date] via [carrier], and the tracking number shows delivery on [date] to the provided address. We also communicated with the customer on [date] to confirm receipt, as shown in the attached correspondence. This evidence demonstrates that the transaction was authorized and fulfilled as promised.”
6. Prevent Future Chargebacks
- Improve Customer Communication: Clearly outline your policies (returns, cancellations, etc.) on your website.
- Fraud Prevention Tools: Use inbuilt fraud analysis and workflows, AVS, CVV verification, transaction verification, define workflows for high risk orders, as well as pre-alerts services such as verify, ethoca.
- Proof of Delivery: Always use tracking numbers and require signatures for high-value shipments. For digital items, ensure proper evidence of service provided has been maintained digitally.
- Be Transparent: Provide accurate product descriptions and images to minimize misunderstandings.
7. Seek Professional Help
If chargebacks are a recurring issue or you want them to be dealt professionally, consider hiring chargeback management experts like Chargeback Specialist. With expertise in Shopify, Stripe, PayPal, Visa, MasterCard, AMEX, Discover and most of the other payment platforms, these professionals can assist in building stronger cases and streamlining the dispute process.
Final Thoughts
Winning chargebacks requires preparation, attention to detail, and professional expertise and core knowledge of dispute rules across different platforms both as an acquirer (merchants) and issuer (cardholders). By acting swiftly, gathering evidence, and improving your store policies, you can minimize losses and strengthen your business against future disputes.
