Chargeback Representment: When to Fight a Partial Claim

Customers are entitled to claim a full or partial chargeback amount when they file credit account complaints. There are many reasons why cardholders would file for only a partial amount. Most commonly, the customer has used a portion of their purchase, or there is only a fraction of their order they are unsatisfied with. Or perhaps they were charged more than their expected purchase amount, and only want a refund for the overage.

Although a partial amount might seem easier to accept than a full claim, merchants should still look into the chargeback and evaluate whether or not they would like to dispute it. So when should you move forward with fighting a partial claim? If you evaluate the chargeback and its accompanying reason code, find you have evidence compelling enough to fight the claim, and feel that it is worth the time and energy to fight the amount, then it is worth disputing.

Remember, merchants have the right to defend themselves just as customers do. Your reputation and revenues are on the line. Bankers will remember businesses with a history of simply accepting all chargebacks without attempting to prove their innocence. In addition, chargeback fraud is a crime that costs retailers billions annually. These are all reasons why the chargeback representment process exists to protect you.

To dispute a chargeback, simply state the amount of representment you are seeking (whether full or partial) and the reasoning behind the amount. Show evidence supporting your claim that aligns with the reason code cited for the chargeback. Remember to act fast within the timeframe provided for your rebuttal.

Be smart when it comes to choosing your chargeback representment amount. Representments can be in the full amount of the original transaction or in a partial amount. It will be all but impossible to secure a full reversal if you don’t have enough evidence to justify it. Review all of your documentation on hand – receipts, order forms, customer communication, and transaction history – when deciding the refund you seek. Go for the amount that you have the greatest odds of realistically receiving based on the evidence you’ve gathered.

In the best case, a full chargeback reversal will be issued. In other cases, a partial chargeback reversal will be issued for a corrected amount, mitigating some of the costs to the merchant.

In some cases it is advisable to file a lesser representment amount for the transaction. For example, if a customer is claiming a refund for a transaction in which he or she was overcharged, the retailer may wish to refund the overcharge amount but not the entire transaction.

Even if a customer is willing to settle for a partial chargeback, merchants should still perform proper due diligence to consider fighting it. As every businessperson knows, operational costs add up quickly. Every dollar counts when it comes to maintaining successful profit margins, so be smart when it comes to protecting your revenues, including fighting for full and partial chargeback reversals when you can.