Frequently Asked Questions
The final stage in any particular chargeback depends on the circumstances of the chargeback and the decisions made by the parties to the chargeback. That being said, the final possible stage in the chargeback process is an arbitration decision rendered by the card network.
Representment is the process that allows merchants to dispute chargebacks. It allows the merchant to provide evidence to prove the validity of the chargeback and, if successful, recover the revenue that had been revoked as a result of the chargeback.
The compelling evidence that a merchant submits in representment changes depending on the source of the chargeback. Essentially, the content of the evidence needs to match the reason code. The format of the evidence should be something that clearly serves as documentation of the merchant’s counterclaims. This includes records of communication between merchant and cardholder, delivery confirmation, invoices and receipts, and confirmation of the cardholder's identification.
It is certainly possible to use a chargeback response template to write a rebuttal letter. But it could ultimately prove more time-consuming and less effective than other methods. If you have the knowledge, experience, and available time to write your own letter, that is likely to be more effective than a template-based letter. Alternatively, if you do not have the time and experience, outsourcing your rebuttal letter creation is another option—albeit one that requires a degree of faith in the chargeback company that you hire. Another possibility is to use a tool that helps you write rebuttal letters through the use of dynamically generated templates, offering a balance of effectiveness, ease of use, and in-house control.
The most important element of winning a chargeback dispute is having compelling evidence in your favor. Chargeback laws and procedures generally favor cardholders over merchants and there are no tricks to win a chargeback dispute without having good evidence. Beyond that, it is important to know how to craft a good rebuttal letter and to be familiar with the specific chargeback procedures of each card brand.
A chargeback dispute letter is effectively a cover letter for a chargeback representment response. It provides any necessary information to identify the transaction, addresses the specific claims that the cardholder has presented, and outlines what supporting evidence will be provided. It also explains what outcome the merchant is seeking.
Chargeback rebuttal letters can be written from scratch by the merchant, written based on templates available online, written by outsourced chargeback management solution providers, or created through the use of a dynamic chargeback representment tool. An effective chargeback rebuttal letter should concisely frame your response to the chargeback. It provides any necessary information to identify the transaction, addresses the specific claims that the cardholder has presented, and outlines what supporting evidence will be provided. It also explains what outcome you are seeking.