Nothing is more frustrating to any business than getting notified of a chargeback. Aside from being such an inconvenience, a chargeback means losing money and staining your credibility.
With such a small threshold for the number of chargebacks that you are allowed to get in a month, you could risk losing your high risk merchant account and get into bigger problems in the long run.
The good news is you can always fight a chargeback and the key to winning a dispute is to get compelling evidence to prove that a transaction is legitimate.
What evidence is considered compelling?
When a customer files a chargeback, the bank will initially take his side until you prove it otherwise. Luckily, banks would also give you time to create a reasonable doubt by providing them with strong evidence that will help you reverse a chargeback.
What documents do you need as evidence?
If you are to win a chargeback dispute, these are some of the evidence that you should put together:
- A confirmation that the customer visited your website.
In some cases, a customer would dispute a payment charged on his credit card by saying that he didn’t visit or made any purchases on your website. Luckily, both your website and the payment gateway can offer information to prove that your customer made the purchase. This includes the cardholder’s IP address, a confirmed match of the cardholder’s billing address, and CVV.
Having the cardholder’s IP address will also allow you to track the customer’s activity on your website and you could use that as additional proof that he wanted to make the purchase.
- A confirmation that the product was shipped and delivered.
A lot of friendly fraud cases are done with a customer filing for a chargeback after claiming that his order was not delivered to his address. Now if you are sure that the product was shipped and delivered, you can prove that with a receipt confirming the delivery.
It is also highly important to request for a shipping address even if you’re delivering a virtual product or service. This will allow you to compare shipping and billing addresses, and you can even have a physical package delivered to the address even if it’s purely digital to prove that the customer did receive the order.
- Proof of fraudulent behavior patterns.
Fraudsters will not stop at just one website. In fact, they may have already done fraudulent activities on different online stores and you can prove this by establishing a verification of their behavior patterns.
For instance, if a customer filed for chargeback within the last 60 days, then it could be a sign of a repeat offender.
Finally, you need to create a good rebuttal letter that explains your side regarding the chargeback. Keep everything short and make sure to focus on the facts that are related to the reason code.
You also need to be specific about your details and back your reasons up with the right documentation of your evidence.