How to Prevent Chargebacks
While chargebacks can't always be avoided, you can take steps to minimize them:
Respond quickly to cardholder concerns. If a cardholder reaches out with a valid dispute, resolve the issue promptly. If appropriate, issue a refund and notify the customer. This may prevent the situation from escalating into a chargeback.
Review suspicious transactions. If a payment seems unusual, contact the cardholder to verify the transaction. If you suspect fraud:
Do not deliver the goods or services.
Void the authorization if possible.
If the payment is already captured, issue a full refund.
Set fraud rules and monitor transactions. Use fraud prevention tools to flag risky activity before accepting payments.
If a Bank or Issuer Contacts You
If you are contacted by the card issuer, consult with your acquiring bank. The acquirer understands card scheme rules and can guide you on how to respond effectively.
Always provide your acquirer with detailed information to support your case.
Well-documented responses increase the chance of successfully reversing a chargeback.
Understanding the Chargeback Process in the Merchant Portal
You can track and manage disputes directly in the Merchant Portal under the Disputes menu. The process works as follows:
Cardholder initiates a dispute with their issuing bank.
The issuer routes the dispute information through card schemes to the acquirer.
The acquirer contacts you (the merchant) for supporting information. In the Merchant Portal, the dispute appears with the status Information Requested.
You provide evidence related to the transaction. This can include:
Order confirmation
Customer contact details
Delivery records (shipping dates, tracking information)
Any other documentation that explains the transaction
In the Merchant Portal, the status updates to Information Provided.
Based on the provided evidence and dispute reason, the acquirer will either:
Reverse the chargeback — status changes to Reversed
Accept the chargeback — status changes to Charge Back, and the payment status updates to Charged back
Fast, thorough responses and solid evidence are your best tools in avoiding chargeback losses.