What steps should I take immediately after a chargeback is initiated?

Immediate Steps to Take After a Chargeback Is Initiated

1. Review the Chargeback Notification Promptly

• As soon as you are notified of a chargeback, carefully review the details, including the reason code and any information provided by the cardholder or issuing bank.

2. Decide Whether to Accept or Dispute the Chargeback

• You must choose to either accept the chargeback (and forfeit the funds) or dispute it by submitting evidence to support your case.

3. Gather and Submit Compelling Evidence

• Collect documentation such as receipts, signed agreements, proof of delivery or service, communication records, and your terms and conditions.
• Submit a clear, organized rebuttal letter and all supporting evidence within the required timeframe (usually 7–21 days, depending on the card network).

4. Contact the Customer (If Appropriate)

• Reach out to the customer to understand the reason for the dispute. If it was a misunderstanding, ask them to contact their bank to withdraw the chargeback, and request written confirmation if they do so.

5. Follow Payment Processor Instructions

• Adhere to any specific instructions from your payment processor or platform, as they may have particular requirements for submitting evidence or communicating with the bank.

6. Monitor and Follow Up

• Track the status of your dispute. The issuing bank may take up to 90 days to make a decision. Follow up as needed and keep records of all correspondence.

7. Learn and Adjust

• Regardless of the outcome, review the case to identify any patterns or business practices that can be improved to prevent future chargebacks.

Key Points:

• Act quickly—delays can result in an automatic loss of the dispute.
• Provide clear, relevant evidence to support your position.
• Maintain open communication with both the customer and your payment processor throughout the process.

Taking these steps immediately after a chargeback is initiated maximizes your chances of a favorable resolution and helps protect your business from unnecessary losses.