Chargebacks are the fees returned to payment cards after customers have successfully disputed an item on their statements of account or transaction reports. Chargebacks could be either applied to debit cards (and basic bank accounts) or credit cards. Customers could ask for chargebacks in several circumstances. This part will guide you on how to respond and process chargeback requirements from customers.
In this article
B. Duplicate
C. Fraudulent
D. General
H. Unrecognized
When one payment account is listed as dispute and required to be refunded by cardholders, their card issuers will use one of these sections to correctly describe the reasons for that payment. You can see it according to the orders by clicking into ShopBase Managing > Orders.
A. Credit not processed
The customer claims that the purchased product was returned or the transaction was canceled, but you have not yet provided a refund or credit.
Required to overturn dispute:
How to respond:
If the cardholder agrees to withdraw the dispute, you should still submit evidence for the dispute. In addition to the following evidence, your submission should include correspondence with the cardholder saying they would withdraw the dispute and a written statement from their card issuer confirming that the dispute has been withdrawn.
B. Duplicate
The customer claims they were charged multiple times for the same product or service.
Required to overturn dispute: Demonstrate that each payment was for a separate product or service.
How to respond: Determine if your customer was incorrectly charged multiple times.
C. Fraudulent
This is the most common reason for a dispute and happens when a cardholder claims that they didn’t authorize the payment. This can happen if the card was lost or stolen and used to make a fraudulent purchase. It can also happen if the cardholder doesn’t recognize the payment as it appears on the billing statement from their card issuer.
Required to overturn dispute: Provide adequate payment and order details so that a legitimate customer recognizes it, or proves to the card issuer that their cardholder authorized the transaction.
How to respond:
It may be more efficient—and provide a better customer experience—to accept an accidental dispute and charge the customer again, if appropriate. Even when a dispute is withdrawn, it usually takes approximately 75 days to be finalized. Remember, it doesn’t matter to the card networks whether you win or lose a dispute; what matters is how many disputes a business receives, regardless of how many disputes are won.
D. General
This is an uncategorized dispute, so you should contact the customer for additional details to find out why the payment was disputed.
E. Product not received
The customer claims they did not receive the products or services purchased.
Required to overturn dispute: Prove that the customer received a physical product or offline service, or made use of a digital product or online service. This must have occurred prior to the date the dispute was initiated.
How to respond: First, get in touch with your customer. Understanding why they filed the dispute will be important for helping make sure your customer gets the product and will give you critical information to prevent this from happening to others.
F. Product unacceptable
The product or service was received but was defective, damaged, or not as described.
Required to overturn dispute: Demonstrate that the product or service was delivered as described at the time of purchase.
How to respond:
If the customer no longer disputes the transaction, provide a letter or email from the cardholder stating that they are no longer in dispute.
G. Subscription canceled
The customer claims that you continued to charge them after a subscription was canceled.
Required to overturn dispute: Prove that your service does not provide any subscription, and that the customer was aware of that.
How to respond: First, get in touch with your customer. If you understand what they believe happened, there is a chance for you to explain the misunderstanding or to make it right.
H. Unrecognized
The customer doesn’t recognize the payment appearing on their card statement.
Required to overturn dispute: As with fraudulent disputes, get your customer to withdraw the dispute by helping them identify the payment.
How to respond: First, try to get in touch with your customer. Sometimes people forget about payments they make or don’t recognize the way they appear on their card statement. If this is the case, ask them to contact their card issuer and let them know they no longer dispute the transaction.
Even if your customer agrees to withdraw the dispute, you must still submit appropriate evidence. Simply saying that your customer is going to withdraw the dispute is not sufficient evidence.
It may be more efficient—and provide a better customer experience—to accept an accidental dispute and charge the customer again, if appropriate. Even when a dispute is withdrawn, it usually takes approximately 75 days to be finalized. Remember, it doesn’t matter to the card networks whether you win or lose a dispute; what matters is how many disputes a business receives, regardless of how many disputes are won.