Chargeback Reversal: How to Fight and Win Disputes
1 min read
Summary
A chargeback is when a customer contacts their bank to dispute a charge on their account, and the money is refunded to them if the bank agrees with the customer.
Chargebacks were originally designed to protect consumers but can hurt honest businesses, which is where chargeback reversal comes in, whereby the business can fight the chargeback and convince the bank to return the funds.
This is done by reviewing the reason the customer disputed the charge and then gathering evidence such as proof of delivery, customer communication, or proof of service, and submitting this as a response.
The payment processor will then forward this on to the card issuer who will review the case, a process that can take several weeks, after which the funds will be returned if the bank is convinced by the evidence.
It is important to respond quickly when a chargeback notification is received, and to keep documentation organised and relevant to the reason for the chargeback.
Chargeback reversal is not always worth the effort for small amounts or clear fraudulent cases, but it is an important mechanism to protect revenue and business health in many cases.