How to Reverse Chargeback Disputes

If you run a business--especially one that offers services online--then sooner or later, you will probably have to deal with a chargeback dispute. This takes place when the buyer rejects the sale for any number of reasons and requests that the credit card issuer nullify the sale. The credit card issuer then passes the chargeback cost to the merchant, with an additional fee usually tacked on to handle processing. You can reverse a chargeback dispute, but it is difficult and works best when you have taken adequate preventative steps.

Instructions

1. Keep clear documentation of all credit card transactions. This includes not only any signed receipts and orders from the customer but also shipping orders, tracking numbers, emails from customers and signed proofs of delivery from companies such as UPS and FedEx. A strong paper trail is your best bet when trying to reverse a chargeback dispute.

2. Contact the credit-card-issuing bank within 7 days of receiving a chargeback. The faster you move, the better chance you have to reverse the chargeback. It demonstrates that you take the matter seriously and that your case may be stronger than if you simply let things wait while dealing with other issues.

3. Ask for the reasons behind the chargeback. You're entitled to know why the customer has initiated a reverse and what the specific problem was that started it. That lets you understand what you need to prove to reverse the chargeback or (in the worst case) any problems in your own operation that you need to correct.

4. Submit copies of your documentation in support of your case. The credit card company will want to know exactly why they should reverse the chargeback and let the sale go through. If you can present compelling evidence clearly, cleanly and concisely, you can go a long way toward proving your point.

5. Act with patience and yet stay diligent. It can take months to reverse chargeback disputes, and the odds rarely favor the merchant. Stay in close contact with the credit card company, ask for regular updates and be prepared to submit additional documentation supporting your case if the need comes up.

Tips & Warnings

• Chargeback disputes are easier to reverse with customers in North America and Western Europe. Be extremely careful when processing orders from former Eastern bloc countries such as Russia and the Ukraine, and from Indonesia as well. Fraud is rampant in those countries, and it's nearly impossible to reverse a chargeback dispute originating from there.

• Never process a credit card if there is any question about its authenticity or origin. This includes cards that are expired or declined for whatever reason. You are under no obligation to accept a credit card if there is any kind of problem, and you will cut down considerably on chargeback disputes as a result.