Chargeback ResponseThe Specifics of Your Reply are More Important Than You Think

4 Easy Steps to Win Your Next Chargeback Response

Let’s face it: chargebacks aren’t going anywhere. As consumers make more large-scale purchases like automobiles, appliances, and furniture online, chargeback rates will only continue to rise.

This is a serious problem. The cost of the average chargeback is more than three times the initial transaction price. So, how can you effectively navigate this shifting landscape and manage chargebacks without breaking the bank? How can you put together a solid chargeback response that will help recoup your revenue?

In this article, we’ll walk you through a step-by-step approach to a successful chargeback response. We’ll provide the information you need to include, along with some tips to help you save time and recover more money.

What is a Chargeback Response?

Chargeback Response

[noun]/chahrj • bak • rə • späns/

A chargeback response is the process through which a merchant attempts to fight and overturn a chargeback. Also known as “chargeback representment,” as the merchant literally “re-presents” the transaction to the issuing bank for consideration.

A chargeback response is called for when the details of a dispute don’t match transaction records. For example, if a cardholder claims they did not authorize a purchase, but you have proof that they did, then you should submit a chargeback response.

Understanding the chargeback process is key to your success. Once the bank is in possession of your representment package or the chargeback response forms…that’s it. Whether you win or lose is up to them.

Inaccurate or erroneous disputes might be easy to spot from your perspective. To the bank, though, it may not be so obvious. Additionally, issuing banks are not keen to tell their cardholders that they can’t have their money back after that person claims to be the victim of fraud or abuse.

Thus, the best shot you have to win your dispute is to provide as thorough a response as possible. You need to curate the details of your claim very carefully and be sure you don’t overlook anything.

Preparing for a Chargeback Response

In your chargeback response, the power of your argument will hinge almost entirely on the evidence you can provide and the way in which you provide it. Issuing banks receive thousands of chargeback representment packages every month. The swiftest way to ensure that you’re preparing a response that won’t be discarded is to be as thorough as possible but keep it brief and to the point.

Here are some tips to keep in mind before you get started:

What to Include in Your Chargeback Response?

When crafting your chargeback response, it is crucial to present a comprehensive and compelling argument to support your case. You need to including several key documents, outlined as follows:

• Include a copy of your terms and conditions to demonstrate that the customer was fully informed about expectations and policies from the start. This should cover relevant terms like policies on returns, cancellations, and refunds.
• In instances where a chargeback is filed under the pretense that the merchandise or services were not received (notably, if the reason code is 13.1), counter this claim with tangible proof of delivery to the customer.
• A well-crafted cover letter is pivotal. It offers a summary of your case and points to all the supporting documents and evidence you will present in your response. We’ll get into more details on this response letter below.
• Include critical details like receipts, purchase orders, or invoices. Additionally, provide evidence that underscores your security measures, such as AVS or 3-D Secure responses, to further validate the transaction's legitimacy.
• Incorporate specifics from the order, including shipping information noted by the cardholder at the point of sale. If the transaction involves digital goods, include logs and timestamps proving the customer accessed the goods.
• Demonstrating attempts to resolve any customer complaints or issues can significantly strengthen your case. Include evidence such as screenshots, emails, or phone transcripts, to illustrate your customer service efforts.
• Depending on the claim, you may want to include screenshots from your website. This may include images of product pages with descriptions and images, payment and checkout pages, and the order confirmation page.

When prepping a chargeback response form, evidence is the name of the game. Here are some additional examples of evidence you might include in your response:

• Authorization codes to prove the purchase was legitimate (with time stamps)
• Biometric data (if available)
• Fulfillment, tracking, and shipment confirmation details
• Any signed contracts or other documents shared between the parties

Four Steps to Submit a Chargeback Response

After compiling your evidence according to the provided reason code, it’s time to organize your response for submission.

Pay close attention to how you arrange your file. The documents you submit are essentially telling a story that you want to relay to the bank. You want to ensure that it’s easy to read, on topic, and easy to understand.

These four steps can drastically improve your chances of winning your claim:

These four steps will help you prepare a comprehensive, to-the-point chargeback response that can win your case.

It’s important to understand that not every representment package you submit to the bank will be a winner. This is true even if you follow the rules closely. You have to remember, though: for every friendly fraud case to which you don’t respond, you’re guaranteed to lose.

Learning when to fight and when not to fight is very important. On that note, let’s discuss what you shouldn’t include in your chargeback response.

Chargeback Response Example

Writing a chargeback response letter can seem like a daunting task. Remember, though, that simplicity is key.

You’re basically just informing the bank of the validity of the transaction and providing records to support your claim. Your chargeback response doesn’t need to be a beat-for-beat explanation or a hard-line defense of your situation. Keep it short and sweet, and let your evidence speak for itself. 

So, what does a winning chargeback response look like? Here’s an example:

Download this sample Chargeback Rebuttal Letter

Also, remember to keep your opinions and feelings out of this letter, and stick to the facts of your case. The bank is only interested in seeing dates, timestamps, receipts, and other information that would disprove their client’s claim. Anything else will be overlooked, or may even damage your case.

Chargeback Response Mistakes to Avoid

You should fight legitimate chargebacks as often as possible. However, you need to be aware of some finer points. Not every case is worth the effort, and knowing the difference can save you time and money.

DON'T:

• Ignore Deadlines: Banks don’t provide extensions or exceptions for disputes or responses and always set firm deadlines. A late submission is a guaranteed loss.
• Fight Legitimate Chargebacks: Not every chargeback is a four-alarm fire. Some are caused by non-malicious extenuating circumstances, and some are the cause of errors built into your practices. You shouldn’t ignore any chargeback, but you should choose your battles wisely with representment.
• Submit Incomplete Responses: If you don’t have all of the evidence you need, don’t send the bank anything at all. You’ll be wasting your time, as the issuer will toss incomplete representment packages away.
• Assume All Banks are the Same: Each institution has its own rules and procedures. You need to submit chargeback responses in the manner they outline, or they will simply reject your submission.

Have additional questions about chargeback responses? Or, are you in need of help managing your chargeback situation?

Chargebacks911® can help you prepare your chargeback response from start to finish. We have the industry’s best-proven record for end-to-end chargeback management and response.