Understanding & Managing Chargebacks
Learn how to prevent, respond to, and win chargeback disputes. Our expert guidance helps protect your revenue and maintain a healthy merchant account.
What is a Chargeback?
A chargeback occurs when a customer disputes a transaction with their bank, and the bank reverses the charge. This consumer protection mechanism can impact your business if not managed properly.
Common Chargeback Reasons
- • Fraudulent transaction (card stolen or compromised)
- • Product not received or significantly not as described
- • Duplicate processing of the same transaction
- • Customer doesn't recognise the charge on statement
- • Customer cancelled subscription but was still charged
- • Technical error or processing mistake
Impact on Your Business
- Loss of revenue from reversed transactions
- Chargeback fees (typically £15–£25 per case)
- Loss of goods/services already delivered
- Administrative time to dispute chargebacks
- Higher processing rates if chargeback ratio increases
- Risk of losing merchant account if ratio exceeds 1%
The Chargeback Process
Understanding the timeline helps you respond effectively
A customer contacts their bank to dispute a charge on their account.
The card issuer temporarily returns the funds to the customer and notifies you.
You have 7–21 days to provide compelling evidence to challenge the chargeback.
The issuing bank reviews evidence and makes a final ruling on the dispute.
Building Compelling Evidence
To successfully dispute a chargeback, you need to provide clear, organised evidence that proves the transaction was legitimate and the goods/services were delivered as promised.
The stronger your evidence, the higher your chances of winning the dispute. Our chargeback specialists can help you build the most effective case.
Get Expert HelpEvidence Checklist
- Transaction receipt with customer signature
- Proof of delivery with tracking number
- Customer communications (emails, chat logs)
- Terms and conditions the customer agreed to
- IP address and device information
- Previous non-disputed transactions
- Refund or cancellation policy
- Photos or screenshots of delivered product
Preventing Chargebacks
The best chargeback is the one that never happens
Accurate, comprehensive descriptions. The fewer surprises at delivery, the fewer 'item not as described' disputes.
Customers should recognise your business name on their statement. 'CHARGE PMT 4287' isn't recognisable.
Respond fast. Most chargebacks come from customers who tried to email you first and got nothing back.
Keep receipts, shipping records, delivery confirmations, and any customer correspondence. The card networks won't take your word for it.
Display it. Honour it.
Tracked shipping for everything. Signature required for high-value items.
Need Help with a Chargeback?
Our dedicated chargeback team is here to help you respond effectively and protect your business. Time is critical. Contact us immediately.