A chargeback notice usually shows up as a letter or an email from your processor with a deadline and a code you have never seen before. Most owners either ignore it or send a long, angry reply. Both lose.
Fighting a chargeback is mostly paperwork done in the right order. Here is how I walk my clients through it.
Step by step: what to do when a chargeback arrives
- Find the deadline and put it on your calendar. Processors often give you less time than the card network does, so go by the date on your notice. Missing it usually means you lose automatically.
- Look up the sale. Match the date, amount and last four digits of the card to your records.
- Read the reason code. It says what the customer claimed: fraud, never received, not as described, cancelled, or charged twice.
- Decide whether to fight. If you already refunded the customer, or they are right, accept the chargeback and move on.
- Gather the proof that answers that reason, and only that reason.
- Write a short response, attach the proof, and submit it through your processor's portal or the way the notice says.
- Write down what caused it, so the next one does not happen.
Read the reason code first
Each card network has its own list of codes, but they fall into a few groups. Your evidence has to answer the claim behind the code. Sending a pile of everything you have is less convincing than three documents that prove the one point.
| The customer says | What usually wins it |
|---|---|
| "I didn't make this purchase" (fraud) | Proof the card was there: chip or tap record, signature, or for online orders matching address, IP and past orders from the same customer |
| "I never got it" | Delivery tracking with the address, a pickup signature, or photos of finished work on site |
| "It wasn't as described" | The description they agreed to, photos, and any messages where they accepted the work |
| "I cancelled" | Your cancellation policy, proof they agreed to it, and the date they actually cancelled |
| "I was charged twice" | Proof the two charges were two separate sales, or proof you already refunded one |
| "I don't recognize this charge" | The receipt, plus how your business name appears on statements |
What evidence to send
- The receipt or invoice, with the date, amount and what was bought.
- A signed contract, estimate or work order for services and deposits.
- Proof the card was present: the chip or tap record from your terminal.
- Delivery tracking or a signed pickup slip.
- Photos of the finished job or the product as delivered.
- Texts and emails with the customer, especially any where they said they were happy or asked for more.
- Your refund and cancellation policy, and where the customer saw it (receipt, website checkout, signed form).
For online sales, Visa's rules let you use past orders from the same customer that were never disputed as evidence against some fraud claims. Ask your processor whether a dispute qualifies.
How to write the response
Keep it to a few sentences, in order, with no emotion. The person reading it reviews hundreds of these. Make their job easy.
A simple pattern that works: who the customer is, what they bought and when, how they paid, what proof is attached, and why that proof answers their claim. For example: "The customer paid $480 on March 3 by tapping their card in person (terminal record attached). The work was finished March 5 and the customer approved it by text (screenshot attached). The customer did not contact us about any problem before filing this dispute."
What happens after you respond
Your processor sends your response to the customer's bank. The bank reviews it and either returns the money to you or sides with the customer. That can take weeks.
If the bank still rules against you, there can be another round, and some disputes end in arbitration by the card network, which has its own fees. For a small sale, the extra round often costs more than it is worth. I help my clients decide that case by case.
When to let it go
Accepting a chargeback you would lose is not giving up. It saves you time, and you can put that time into stopping the next one.
- The customer is right, or you would have given them a refund if they had asked.
- You have no proof that answers the reason code.
- The sale is small and the time to fight it is worth more than the money.
Common questions
Can you stop a chargeback once it's filed?
You can't cancel it yourself, but a customer can withdraw it with their bank. If it was a misunderstanding, call the customer, sort it out, and ask them to call their bank. Still answer the notice by the deadline, and include any proof that they withdrew it or that you refunded them.
How long do I have to respond to a chargeback?
It depends on the card network and your processor, and processors often give you less time than the network allows. Go by the deadline on your notice, and start the day it arrives.
Do I get the chargeback fee back if I win?
Often not. Many processors keep the fee whether you win or lose. Check your agreement, and ask about it when you compare processors.
Should I refund a customer who threatens a chargeback?
If their complaint is fair, usually yes. A refund costs you the sale, but a chargeback costs the sale, a fee, and a mark against your account. Never refund a sale that already has a chargeback filed, though, or you can end up paying twice.