As a merchant, inevitably, you’ll sometimes get hit with credit card chargebacks. While some are unavoidable, the good news is that, under certain circumstances, you can successfully dispute chargebacks when they’re erroneously or fraudulently made.
To dispute a chargeback, you’ll need to first concentrate on writing a winning chargeback rebuttal letter to the credit card issuer, as well as provide evidence that the customer knew and approved of the credit card transaction. As the key document in your chargeback representment case, a chargeback rebuttal letter is essentially a cover letter that clearly and concisely states your claim and presents your evidence.
Toward that end, one of the best tools you can have in your arsenal is a chargeback response template (or a chargeback rebuttal letter sample), which you can keep on hand in case you need it.
You can win your case by writing a winning chargeback rebuttal letter and providing plenty of compelling evidence. As a result, you protect your merchant account, as well as your chargeback ratio rating, from being negatively impacted by unnecessary or malicious chargebacks.
Another way to manage chargebacks is to prevent them from happening in the first place. As a leading provider of high-risk merchant account services, Bankcard can help your business get approved for a range of payment processing methods, including all types of credit, debit, and payment cards, e-checks, and mobile app payments. Plus, we can provide you with chargeback management and billing solutions so that you can mitigate the number of chargeback claims each month.
What’s a Chargeback?
Before creating a chargeback rebuttal letter sample, it’s a good idea to understand what a chargeback is. Then, it makes more sense how it can affect your business and why it helps to have a chargeback response template on hand to cover all types of chargeback disputes.
A chargeback occurs when a credit or debit card issues a refund to a customer after they dispute the charge. Typically in a chargeback, the cardholder contacts the issuing bank rather than the merchant. In response, the bank issues the cardholder a refund of the entire transaction amount.
Customers may request chargebacks for a variety of reasons, including:
- Customer was accidentally charged twice
- Incorrect transaction amount
- Shipped items weren’t received
- Items arrived damaged
- Customer was dissatisfied with the product or service
- Customer says they didn’t authorize the charge
If your business is especially vulnerable to high chargeback rates, Bankcard can give you the tools you need to prevent them. As a high-risk merchant specialist, Bankcard can help you get approved so that you can accept VISA, Mastercard, Discover, and American Express payments, plus a variety of online and remote payments, at low processing rates. Also, we can provide you with the solutions you need to combat all types of fraud, including fraudulent chargebacks.
As a merchant, can you fight a chargeback? Fortunately, you can — and one of the best ways is by writing a winning chargeback rebuttal letter.
How to Create a Chargeback Response Template
If you’re not experiencing chargeback issues at the moment, now’s the time to come up with a chargeback response template you can have ready whenever problems arise. This chargeback rebuttal letter sample should include the bare essentials, such as your company name and credit card information so that you can fill in the details later.
Even if your letter-writing skills aren’t so great, you can create an effective chargeback response template by following this basic format:
- If you’re using physical mail, use stationery with your company letterhead.
- Include a section stating your official business name, merchant ID, business address, and business contact information.
- Write a brief, effective opening paragraph clarifying that you’re disputing a charge.
- Write a brief, effective closing paragraph that again clarifies that you’re disputing the charge in hopes that the chargeback claim is settled in your favor.
By creating a chargeback response template with a concise chargeback rebuttal letter sample that you can keep on hand, you’ll be ahead of the game the next time you have to dispute a chargeback claim.
No matter how much evidence you may have, it’s vital to include a good cover letter that contains all the necessary important information, including:
- Merchant ID number
- Chargeback case number
- Any other relevant transaction data (such as the customer’s name, date/time of the transaction, and a description of the item or service purchased)
- Chargeback reason code
- Delivery confirmation (if the item was delivered)
- Accurate transaction dollar amount
When writing a winning chargeback rebuttal letter, it’s important to include one more vital component: the fact that you’re disputing the charge. This may seem unnecessary, but if you don’t clarify this, your letter may cause some confusion. That’s why you’ll want to conclude your chargeback rebuttal letter sample with a formal request for the chargeback to be overturned in your favor.
When you’re creating your chargeback response template, it’s essential to include references to any evidence you can provide that will back your claim. In addition, you should accompany your dispute letter with physical or digital copies of all the evidence you have. This might include:
- Copies of sales receipts
- Copies of delivery confirmation or delivery tracking
- Copies of any communication with the customer
Chargeback rebuttal letter samples don’t have to be lengthy, but they do need to include everything that can help your case. Toward that end, you can keep a well-written chargeback response template on hand that includes your merchant ID and general account information. Then you can customize it with an updated chargeback rebuttal letter sample that fills in all the essential details relevant to that particular transaction.
Example of a Chargeback Rebuttal Letter
Here’s a chargeback rebuttal letter sample that may help you get an idea of what you need to write. This can act as a chargeback response template, which you can file away for future use:
Dear [Credit Card Company or Bank Issuer],
This is a rebuttal letter to contest chargeback [number] for [dollar amount]. The chargeback reason code is [code number and description].
As we can demonstrate, this transaction was for the legitimate purchase of [description of item] from our store [or online store] on [transaction date]. We have included the following pieces of evidence for our claim:
[Digital receipts showing the cardholder’s purchase]
[Additional receipts, plus IP address and data proving that the purchase was initiated by the cardholder]
[Delivery confirmation receipt, plus any customer signatures that confirm the delivery date]
Please know that we’re contesting this chargeback claim. We feel that our evidence proves that the chargeback was initiated by the cardholder with the cardholder’s full knowledge and consent.
[Or, in cases where the delivery is disputed]: We feel that our evidence proves that the cardholder did take delivery of the item purchased from us.
If you need any further information regarding this case, please let us know. We will be happy to provide it.
[Your company name]
[Your business contact information, including email address and phone number]
This chargeback response template can be customized in different ways to suit any transaction dispute. As you can see, this particular chargeback rebuttal letter sample not only includes all information and evidence relevant to the dispute, but it also clearly states that you’re contesting the chargeback and are willing to cooperate in any way that can further your claim.
Writing a Winning Chargeback Rebuttal Letter
These additional tips can help make your chargeback rebuttal letter more compelling:
- Stay calm and professional. This chargeback isn’t the fault of the person handling your dispute.
- Stick to the facts but don’t make any assumptions about the customer or the transaction.
- Keep it as brief as you can (and down to one page if possible), but don’t omit any relevant details.
- Use formal business language.
Writing a winning chargeback rebuttal letter isn’t difficult, but it does require some careful thought, along with patience and a certain level of emotional balance. If you’re upset about a transaction, wait before you write. Take a step back from the situation before you commit yourself to paper.
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Can a Chargeback Rebuttal Letter Help Your Case?
Writing a winning chargeback rebuttal letter is one thing, but can it actually help your chargeback case? In a word, yes. When written in a professional manner, with compelling evidence that includes every relevant detail of the transaction, a rebuttal letter can be the key to winning your case, possibly helping you recover all of your lost revenue.
It may seem like a time-consuming task when it comes to writing a winning chargeback rebuttal letter. It’s well worth doing as long as you have the proof to support your dispute. Taking the extra time to provide the necessary information helps you build a persuasive case and end up winning.
How to Prevent Chargebacks
In addition to writing a winning chargeback rebuttal letter, you can also be proactive in preventing chargebacks from recurring in the future. These steps can help you mitigate chargebacks and decrease your overall chargeback ratio:
- State a clear refund policy that customers can understand and make refunds simple and straightforward.
- Ensure customer privacy in your invoices. For example, if you have an adult website, use a company letterhead that doesn’t reflect this.
- Help customers know what they’re getting by providing detailed descriptions of every product with plenty of photos and, when applicable, videos and size specifications.
- If your chargeback ratio is high, consider using a 3rd party fraud prevention service that provides automated reviews of each transaction.
- Maintain active, updated communications with your customers, and if you ship products, make sure to get delivery confirmation on everything shipped out.
- Use a tracking service on every delivery.
- For credit card payments, consider using 3-D Secure Protocol (3DS) fraud authentication to provide an added layer of security.
- Be aware of red flags during every transaction. These can include shipping addresses that don’t match, customer addresses that have suddenly changed from domestic to overseas, and multiple changes in contact information.
Finally, when dealing with any type of transaction, the best rule of thumb is to always provide exemplary customer service. Helpful, friendly support can diffuse a difficult situation, especially when a customer is frustrated or dissatisfied with a purchase. By showing that you care about a customer’s concerns, you might be able to win back their trust and their business.
For a merchant disputing a chargeback, nothing works better than writing a winning chargeback rebuttal letter. It should include all the essential transaction data, including compelling evidence that proves the customer made the transaction willingly and knowingly. Although this may involve creating a chargeback response template or chargeback rebuttal letter sample, you can rest assured that the time spent will be worth it. These go a long way toward resolving the chargeback claim in your favor.
Bancard Offers Services Designed for High-Risk Merchant
If you’re concerned about high chargeback rates or need to get approved for payment processing services, Bankcard can help. We’re experts in assisting high-risk merchants in getting authorized to accept credit and debit cards, e-checks, and mobile app payments without having to pay excessive transaction fees. Plus, we can provide you with ways to prevent chargebacks and help you streamline your monthly invoicing and billing methods.
Ready to reach a whole new level of success? Contact Bankcard and find out how our full roster of high-risk merchant account services can boost sales and revenue for your business.