What Is a Chargeback and How Should You Respond?

Category: Chargebacks & Disputes

What Is a Chargeback?

A chargeback occurs when a cardholder disputes a transaction through their card-issuing bank.

The bank may reverse the payment while the dispute is reviewed, depending on the type of dispute and applicable card-network rules.

Why Do Chargebacks Happen?

Common reasons include:

• The customer does not recognize the transaction.

• The customer claims the payment was unauthorized.

• Products or services were not received.

• The customer reports being charged twice.

• A refund was not processed as expected.

• The customer is dissatisfied with a product or service.

What Should You Do If You Receive a Chargeback?

Step 1: Review the Notification

Carefully review the dispute notice, including:

• Transaction amount

• Transaction date

• Dispute reason

• Response deadline

• Requested documentation

Step 2: Locate the Transaction

Find the transaction in your POS system or merchant reporting portal.

Verify the amount, date, receipt, and related order information.

Step 3: Gather Supporting Documents

Depending on the dispute, useful evidence may include:

• Transaction receipt

• Customer invoice

• Signed agreement

• Proof of delivery

• Customer communications

• Refund or cancellation policy

• Evidence that the product or service was provided

Step 4: Respond Before the Deadline

Follow the instructions in your chargeback notification to submit your response.

Important: Chargeback response deadlines vary. Missing the deadline may result in losing the opportunity to challenge the dispute.

Step 5: Monitor the Dispute

Keep track of the dispute's status and any additional documentation requests.

Can I Contact the Customer?

You may contact the customer to understand or resolve the issue, provided you follow applicable rules and avoid pressure or harassment.

However, customer communication does not automatically cancel an active chargeback.

Continue following the formal dispute process unless the processor confirms otherwise.

Can I Win a Chargeback?

Dispute outcomes depend on the reason code, available evidence, and applicable card-network rules.

Submitting evidence does not guarantee a favorable decision.

How to Help Prevent Chargebacks

• Use clear billing descriptions.

• Provide receipts.

• Display accurate refund and cancellation policies.

• Resolve customer complaints promptly.

• Maintain delivery and service records.

• Follow recommended card acceptance procedures.

Need Chargeback Assistance?

Verova Payments Support

Have your merchant name, transaction amount, and dispute reference number available.

Do not email full payment card numbers or sensitive card information.

Verova Payments | Merchant Help Center