Merchant Responsibility

How to respond chargeback

Receiving a chargeback notification can be frustrating, but responding promptly and properly can improve your chances of winning the dispute. Here’s what you need to do:

1. Review the Chargeback Notification Once you receive a chargeback alert from us, carefully check the reason code, transaction details, and deadline for response

2. Collect Relevant Evidence Prepare and organize compelling documentation to prove that the transaction was valid

3. Submit a Chargeback Response Submit the evidence to us before the deadline. Make sure your response is clear, concise, and directly addresses the chargeback reason.

4. Await the Outcome After submission, the issuing bank will review your documents and decide whether to reverse the chargeback or uphold it. The process may take several weeks, depending on the card network and the complexity of the case

5. Learn and Prevent Future Chargebacks Analyze the root cause of the chargeback to determine if it's avoidable.

What evidence is needed

Merchants must provide compelling evidence that proves the transaction was valid and fulfilled. The type of evidence required depends on what was sold—physical goods, digital products, or services. Below is a breakdown of the recommended evidence for each category:

1. Physical Goods Chargebacks for physical products often relate to non-delivery, damaged items, or claims that the item wasn’t as described. To defend against these, provide:

   1. Proof of delivery: Tracking number, shipping carrier, delivery confirmation, or signature on receipt

   2. Order invoice or receipt: Showing product details, customer name, shipping address, and transaction amount

   3. Product description: From your website or listing, to show it matches what was sold

   4. Photos of the product (optional): Especially for high-value or customized goods

   5. Customer communication: Emails or messages confirming receipt, satisfaction, or rejection of return

   6. Policy adherence: Proof that your cancellation/refund policy, Relevant Terms and Conditions, including delivery and refund terms

1. Digital Products Digital goods (e.g., software, e-books, online subscriptions) are often disputed due to unauthorized access or “I didn’t receive it” claims. Useful evidence includes:

   1. Order invoice or receipt: Showing product details, customer name, and transaction amount

   2. Download/access logs: Showing IP address, timestamps, and user ID or email address

   3. Screenshots of login activity or usage records

   4. License keys or activation confirmation

   5. Product description or demo: To prove what was delivered matches expectations

   6. Customer support records: Especially if the user reached out post-purchase

   7. Terms of service agreed upon at checkout

1. Services For services, disputes usually involve claims of unsatisfactory results, unfulfilled services, or miscommunication. Strong evidence includes:

   1. Signed agreement or contract: Outlining scope, timeline, and terms

   2. Appointment logs or attendance records

   3. Before-and-after documentation: Photos, reports, or deliverables

   4. Communication history: Showing the service was performed or accepted

   5. Invoices and proof of payment

   6. Customer feedback or survey results (if positive)

How to avoid chargebacks proactively

Preventing Chargeback

• Implement fraud detection tools (AVS, CVV checks, 3D Secure, device fingerprinting)

• Accept Foreign Cards Selectively Based on Use Case

• Monitor and block suspicious or high-risk transactions

• Ensure cancellation and refund policies are easy to find and understand

• Offer easy ways for customers to contact your support team before escalating to their bank

Pre-sale communication

Many chargebacks result from misunderstandings that could be avoided with better communication before the sale.

• Set clear expectations about pricing, product features, timelines, and policies

• Offer FAQs, live chat, or help centers to answer customer questions in advance

• Confirm details like shipping addresses, billing info, and contact details during checkout

• Be transparent about any limitations, terms, or conditions related to the purchase

Clear product descriptions

Misleading or unclear product descriptions often lead to chargebacks due to unmet expectations.

• Use accurate product names, images, specifications, and sizing guides

• Highlight what’s included (or not) with the purchase

• If selling digital goods or services, explain how they’re delivered and what the user should expect

• Include customer reviews or testimonials to build trust and credibility

Prompt delivery and documentation

Timely and well-documented order fulfillment can help prevent “item not received” disputes

• Ship orders quickly and use reliable carriers that provide tracking numbers

• Send order and shipment confirmation emails immediately after purchase

• Share tracking links and estimated delivery dates with the customer

• Keep detailed shipping records, including proof of delivery, signatures, or pickup logs

• For digital goods, log download attempts, access records, and IP/device details