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How to Dispute a Chargeback

Updated: Jan 7

You could own the most amazing business in the world but eventually you’ll be hit with a chargeback… and once you’re challenged with a chargeback it’s important to act as soon as possible! Not only will chargebacks lead to higher processing fees, they could actually end up getting your merchant account shut down. This article explains how to dispute a chargeback, but it also gives examples on how to be proactive and ready for when you do need a strong case to fight it.

How to dispute a chargeback

When disputing a chargeback you’ll want to create a cover letter, a chargeback rebuttal letter, and provide any proof of purchases and/ or deliveries. All of this must be done within the allotted time frame to present your case- so if you want to save time on forming a chargeback rebuttal letter, you can take a look at ours here.

How to form a strong case

Forming a strong case to send over to the card issuing bank is going to be best way to dispute a chargeback- but being proactive can make putting together that strong case even easier. Using our tips below will help keep you prepared for quick disputes on any future chargeback you may encounter:

1. Display a straightforward return policy: keeping everything as simple and upfront as possible can be hugely beneficial in challenging chargebacks.

2. Have an agreement with the cardholder: we’re talking a literal form that a cardholder would sign agreeing to a specified amount of money to be paid prior to fulfillment of the purchased products or services. Don’t forget to make sure there is a section where the cardholder can agree to your website’s return/ refund policy plus the terms and conditions.

3. Use AVS: while we’re discussing ecommerce sites, make sure to utilize the Address Verification System to help reduce fraudulent transactions. See how you can take advantage of this feature when using the Align ecommerce payment gateway.

4. Send transaction receipts: once the cardholder’s information has been transmitted and approved, sending a proper transaction receipt to their email is always a good idea. If you need an example of a proper transaction receipt, we have one here.

5. Collect signatures: asking your customer to sign a letter of satisfaction after delivery of a product or service (stating that they are 100% satisfied) is another easy way to keep your business safe from chargebacks.

Being able to properly dispute a chargeback is extremely important for a business. Forming a strong case (with as much information as possible) and doing it quickly is key in decreasing your chargeback ratio. Learn more on why you might be getting chargebacks or feel free to reach out to one of our professionals here at Align with any other chargeback questions or concerns you may still have!

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