Chargeback Rebuttal Letter Template

Chargebacks are a significant challenge for businesses, particularly in e-commerce. The global cost of chargebacks was estimated at $31 billion in 2022, with a substantial portion impacting online retailers. Writing a clear, evidence-based chargeback rebuttal letter is essential for businesses to protect their revenue and maintain good standing with payment processors like VISA and MasterCard. This guide outlines the key elements of an effective rebuttal letter and provides actionable tips and data to help you navigate the chargeback dispute process.

Understanding the Chargeback Rebuttal Letter

A chargeback rebuttal letter is a formal response submitted by a merchant to contest a chargeback initiated by a cardholder. It serves as a summary of the merchant’s case, providing critical evidence that supports the legitimacy of the disputed transaction. According to Mastercard’s guidelines, the success of a dispute often hinges on the clarity and completeness of the rebuttal letter.

Key Components of a Chargeback Rebuttal Letter

To effectively contest a chargeback, your rebuttal letter should include the following:

1. Identifying Information:

• Merchant’s Name and Contact Information: Clearly state your business name, address, and contact details.
• Merchant Identification Number (MID): Include your MID to ensure the acquiring bank can easily identify your business.
• Transaction Details: Provide the transaction date, amount, and the customer’s name.
• Chargeback Case Number: Reference the specific case number to link your rebuttal to the chargeback.
• Chargeback Reason Code: Include the reason code assigned by the card issuer.

1. Summary of the Dispute:

• Transaction Overview: Briefly describe the transaction, including the goods or services sold.
• Cardholder’s Claim: Summarize the claim made by the cardholder that led to the chargeback.

1. Presentation of Evidence:

• Proof of Delivery: Attach delivery confirmations, such as tracking numbers and customer signatures.
• Communication Records: Provide any correspondence with the customer that confirms their satisfaction or agreement with the transaction.
• Receipts and Invoices: Include digital copies of receipts and invoices that substantiate the transaction.
• Fraud Prevention Evidence: If applicable, include evidence from fraud prevention tools like CVV or AVS checks.

1. Desired Outcome:

• Reversal Request: State that you are requesting the reversal of the chargeback.

Chargeback Rebuttal Letter Template

Below is a streamlined template for a chargeback rebuttal letter:

[Your Business Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]

[Date]

[Bank/Payment Processor’s Name]
[Address]
[City, State, ZIP Code]

Re: Chargeback Rebuttal for Transaction #[Transaction ID], Chargeback Case #[Case Number]

Dear [Bank or Cardholder’s Name],

I am contesting chargeback #[Case Number] for transaction #[Transaction ID], conducted on [Transaction Date] for [Transaction Amount]. The chargeback reason code assigned is [Reason Code].

This transaction was legitimate, and the product/service was delivered as agreed. Enclosed are the following pieces of evidence:

• Attachment A: Delivery confirmation with customer signature and tracking number.
• Attachment B: Email correspondence confirming receipt and satisfaction with the product.
• Attachment C: Digital receipt and invoice matching the cardholder’s purchase details.
• Attachment D: IP address verification from our fraud prevention system.

Based on this evidence, the chargeback is unwarranted. I request that the chargeback be reversed and the funds reinstated to our account.

Please contact me directly if further information is required.

Sincerely,
[Your Name]
[Your Title]
[Your Business Name]

Best Practices for Structuring and Submitting Your Rebuttal Letter

1. Use Formal Business Language: Maintain a professional tone throughout the letter. Avoid informal language or jargon that might confuse the reviewer.
2. Be Clear and Concise: The letter should be straightforward and to the point. Avoid unnecessary details.
3. Structure the Letter Logically: Use bullet points or numbered lists to present evidence clearly.
4. Submit Within the Timeframe: Chargebacks typically need to be responded to within 20-45 days. Submit your rebuttal letter within this period to avoid automatic loss of the dispute.
5. Keep Copies of All Correspondence: Retain digital and physical copies of the rebuttal letter and all supporting documents for your records.

Common Mistakes to Avoid

• Using Generic Templates: Customize each rebuttal letter to address the specific circumstances of your dispute.
• Including Irrelevant Information: Focus solely on the facts that support your case.
• Being Overly Emotional: Stay factual and avoid expressing frustration or anger, even if you believe the chargeback is unjust.

Tables with Useful Data

Table 1: Common Chargeback Reason Codes and Required Evidence

Table 2: Timeline for Responding to Chargebacks by Payment Processor

Table 3: Average Chargeback Win Rates by Industry (2023)

Leveraging Expertise in Chargeback Prevention

Managing chargebacks can be complex, and partnering with experts in the field can improve your chances of success. Merchanto.org, an official partner of VISA and MasterCard, specializes in chargeback prevention and dispute management. This partnership allows Merchanto.org to offer tools and strategies that help businesses reduce chargebacks and handle disputes effectively. To learn more about how Merchanto.org can support your business, visit Merchanto.org.

Conclusion

Chargebacks are a reality for any business that accepts credit cards. However, by crafting a well-structured, evidence-backed chargeback rebuttal letter, businesses can effectively dispute unwarranted chargebacks and protect their revenue. Follow the guidelines outlined in this article to enhance your chances of success in the chargeback dispute process.