The dispute lifecycle
A cardholder contacts their issuing bank. The issuer reverses the funds provisionally and assigns a reason code. Your processor notifies you and sets a response deadline.
You may respond with evidence, a process called representment. The issuer then upholds or reverses the chargeback. Deadlines are strict and missed deadlines usually decide the case automatically.
Common reason categories
Reason codes vary by network but cluster into a few practical categories, and each has a different winning evidence set.
Fraud
Cardholder says they did not authorize the sale. Card-present chip data or strong online verification matters most.
Product or service
Not received, not as described, or cancelled. Delivery confirmation and communication records matter most.
Processing error
Duplicate charge, wrong amount or wrong currency. Batch and receipt records usually resolve these quickly.
Authorization
Charge processed after authorization expired or without valid approval. Timestamps matter most.
Evidence that actually helps
Compelling evidence is specific, dated and tied to the disputed transaction. Signed receipts, chip transaction data, delivery tracking, the customer's own written communication and your published refund policy carry weight.
General statements about your business practices do not. Assemble a standard evidence packet per dispute type so responses are fast and consistent.
Prevention beats representment
Most disputes are avoidable. Use a clear, recognizable billing descriptor so customers identify the charge on their statement. Respond quickly to customer contact before it escalates to the bank.
For card-present sales, always let the chip or contactless interface complete rather than keying. For online sales, capture address and security-code verification and keep delivery proof.
Track your dispute ratio. Sustained high ratios can trigger network monitoring programs, which carry operational consequences well beyond the disputed amounts.
Frequently asked questions
How long do I have to respond to a chargeback?
Response windows are set by the card networks and are typically short. Your processor's notice will state the exact deadline, and missing it usually forfeits the case.
Does a refund stop a chargeback?
A refund issued before the dispute is filed usually prevents one. Once filed, a refund can create a duplicate credit, so coordinate through the dispute process instead.
Are chargebacks the same as refunds?
No. A refund is initiated by you. A chargeback is initiated by the cardholder's bank and usually carries an additional handling fee.
What is a healthy dispute ratio?
Networks publish monitoring thresholds and staying well below them is the goal. A specialist can review your current ratio and the drivers behind it.
Want a second opinion on your setup?
Tell us how you take payments today and a BSV Solution specialist will walk through the options with you. Eligibility and processor selection are reviewed individually, subject to underwriting approval.