Five Tips for a Successful Chargeback Reversal

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Receiving notification of a chargeback can be extremely frustrating for merchants. To add to the stress, you might only have a short amount of time to submit your rebuttal before it’s assumed that you’re accepting the chargeback. If you plan to dispute it, act quickly and be sure to have the right strategy and evidence in place. With these tips and tricks, you’ll be in a better position to receive a successful chargeback reversal.

1. Understand the Reason Code

First and foremost, you must thoroughly understand the chargeback reason code. Each credit card provider has its own array of reason codes that explain why a chargeback is issued. Depending on the card provider, familiarize yourself with the reason code and the types of evidence that will rebut it, as well as any guidelines required for submitting proper documentation.

2. Gather Compelling Evidence

As previously mentioned, each credit card provider will outline its own guidelines for which documents may be accepted for each reason code. For example, if a customer is claiming that a purchase was never delivered, one card provider may require a tracking number for the delivery while another may require a tracking number plus additional documentation citing proof of delivery. The point is, abide by the guidelines set forth by the card issuer and make sure your evidence properly addresses the chargeback reason code.

3. Write a Strong Rebuttal Letter

Your rebuttal letter will be submitted along with your evidence and gives you the opportunity to outline your side of the story, disproving any claims made by the cardholder. Remember to stick to the facts. A strong rebuttal letter is concise and makes its points clearly. The rebuttal letter should not be used as a platform to vent emotionally. Be professional and focus on the facts.

4. Be Quick to Take Action

There are often strict time limits when it comes to the chargeback representment process. Although the timeframe will vary depending on the credit card brand and other factors, it’s always best to act quickly. Don’t wait to start gathering your documentation and composing your rebuttal letter. Merchants who take immediate action often increase their odds of a successful chargeback reversal. If you fail to address the chargeback within the time limit, it’s assumed that you are accepting liability for the chargeback.

5. Take Preventative Measures

Whether or not your chargeback reversal is issued, you can still learn a lot from going through the process. If you are seeing many chargebacks with similar reason codes, perhaps process improvements are needed within your organization. With the proper corrections, you can stop the chargebacks from happening in the first place.

Outsourcing help from a third-party vendor is an additional expense, but can be a helpful strategy in the long run if you don’t have the time, energy or resources to dispute chargebacks yourself. These vendors specialize in the industry’s ever-changing complex processes.

Whatever strategy you decide to take, understanding the overarching process is the first step for successful chargeback reversals.

To speak to a consultant call (305) 423-0261

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