Money time bomb

5 Steps To Fight a Chargeback

You earned it and you want to keep it! Here are the 5 steps to fight a chargeback.

There are actually two key paths for disputes and chargebacks and both have 5 important steps you should follow to ensure that you retain the money that is due to your business. The first path is the dispute process and the other is the actual chargeback process.

Dispute Process

As we said, a dispute typically precedes the actual chargeback. Most legitimate customer complaints related to a credit card charge are addressed to the business by the customer. They want to make a return or are questioning a charge and they contact the business first. Here are the 5 steps to handle a dispute successfully.

Step 1) Before you even experience a dispute of any kind, you need to have a very clearly defined refund and cancellation policy. While this step may not be possible if you are currently going through the process, you should establish your policy and communicate it in your store, restaurant, on your proposals, invoices and online. Communicate it clearly and often.

Step 2) Once you hear of a dispute, make sure you have spoken with all team members before reaching out to the customer. Ask if they have worked to resolve this issue and what they have (or have not) done. Speak to the customer with knowledge of the situation and stay calm, cool and collected. Document what is discussed.

Step 3) Work with your customer to try and resolve the dispute. Find out why they are disputing the charge. Keep documenting. Take notes of conversations and of any information you provide to the customer, and what the customer provides to you.

Step 4) While you are reviewing this with the customer, don’t delay in contacting the processing bank.

Step 5) Maintain communication. Do not let time pass by! Follow up. Answer questions and provide information promptly.  Time is not on your side.

Hopefully this allows you an opportunity to make it right with the customer. Replace, repair or resolve the issue. This is not only good for your bank statement, but for your relationship with the customer.

Chargeback Process

If the process above does not work or if the customer jumped ahead and just initiated a chargeback, then here are the 5 steps to follow to fight a chargeback.

Step 1) Do not wait to address this issue with your bank.

2) Talk to your employees to learn what they may know and then, contact the customer

Step 3) Collect documentation related to the transaction such as date of service or transaction, products or services delivered, customer information including their billing and – if applicable – delivery or service address.

4) Provide documentation to the processing bank. Show that you did deliver the product or provide the service. Add photos of a completed project, before and after. Show records of your employee communication with the customer that you were on site the days when a service was provided. Consider any and all documentation such as signed contracts, accepted work orders, acknowledgment of work completed and/or shipping receipts. Provide as much as you can to verify that you are due the funds.

5) Continue to stay in contact with the processing bank to follow up and know where they are in the review process. Provide additional information as requested.

Ask For Help From TransAct

Throughout this process, you may want to engage our support and assistance. If you can’t find the records on the portal, or you are not sure what and how much detail to provide, we are your ally in this. Ask for our help.

We can help you to defend your position. Sometimes it is a bit of a fight, but we work with our clients to resolve a dispute and/or a chargeback so that you can retain the money that was originally deposited to your account and that is due to your business.

If you do nothing, the bank can remove the money, refund the customer and you have no recourse. Plus, you have to pay fees on each way of the transaction.

If you are not working with TransAct yet, get in touch. We can start the process and help you establish your policies to be able to resolve disputes and chargebacks if (or when) they happen.

P.S. We just helped a client resolve a membership charge that was transferred to another local operating gym due to the pandemic. In this case, the chargeback was worth several thousand dollars; initially charged for annual fees. The client had all of the records and we helped them present the documentation in the right way and support their position that they were due the money. We were able to stay focused when the business owner was very stressed about this situation as you can imagine. Don’t go through this alone. TransAct is your ally in this fight. Schedule a one-on-one with us at your convenience here.