Chargeback Rebuttal Templates

Chargeback disputes are a significant concern for businesses, with merchants losing over $31 billion annually. A chargeback rebuttal letter allows merchants to challenge these disputes and recover lost revenue. In this guide, we’ll break down the essential parts of a chargeback rebuttal letter, best practices, and key evidence needed to reverse a chargeback. Additionally, we provide sample templates, data tables, and insights from authoritative sources like Visa, Mastercard, and Braintree.

1. What is a Chargeback Rebuttal Letter?

A chargeback occurs when a customer disputes a charge, forcing the bank to reverse the payment. A chargeback rebuttal letter is the merchant’s opportunity to contest the chargeback by presenting evidence. Given that over 80% of chargebacks result from friendly fraud, preparing an effective rebuttal is critical for minimizing revenue loss.

2. Key Components of a Chargeback Rebuttal Letter

A chargeback rebuttal letter should include all necessary information to support the merchant’s claim. The most important elements are:

• Merchant Information: Business name, Merchant Identification Number (MID), transaction date, chargeback reason code, and case number.
• Summary of the Dispute: Clearly explain the transaction and reason for disputing the chargeback.
• Supporting Evidence: Briefly list and attach relevant documents, such as proof of delivery or customer receipts.
• Compelling Argument: Explain why the chargeback is invalid using facts.
• Clear Request for Reversal: Explicitly ask for the reversal of the chargeback.

Table 1: Common Chargeback Reason Codes and Necessary Evidence

3. Writing an Effective Chargeback Rebuttal Letter

The tone and structure of the rebuttal letter impact its effectiveness. Keep it straightforward and factual. Focus on key points:

• Conciseness: Stick to the facts without unnecessary details.
• Clarity: Use bullet points to summarize the main evidence.
• Professionalism: Avoid emotional language. Keep the letter formal and focused on the dispute.
• Customization: Tailor each letter based on the specific chargeback reason code.

For example, if a chargeback is filed under “Merchandise Not Received,” include signed delivery receipts and tracking data.

Note: Merchanto.org, an official partner of Visa and Mastercard, offers specialized tools for chargeback prevention. Visit Merchanto.org for more information.

Table 2: Best Practices for Rebuttal Letters

4. Types of Compelling Evidence

The evidence you present in the rebuttal letter is critical. Here are key pieces of evidence that increase the likelihood of winning the dispute:

• Proof of Delivery: Shipping confirmation, signed delivery receipts, and tracking information.
• Transaction Details: IP logs, CVV match, AVS data, and any identity verification records.
• Customer Communication: Emails or messages where the customer confirms they received the product or service.

Table 3: Evidence Needed for Different Chargeback Types

Fact: According to Visa, merchants who submit complete and compelling evidence have 42% higher success rates in reversing chargebacks.

5. Chargeback Rebuttal Letter Template

Use the following template for your rebuttal letter, adjusting it based on the specific dispute:

[Merchant’s Name]
[Merchant’s Business Name]
[Merchant’s Address]

[Date]

[Bank’s Name]
[Chargeback Department]
[Bank’s Address]

RE: Chargeback Dispute for Transaction ID [Transaction ID], Chargeback Reason Code [Reason Code]

Dear Sir/Madam,

I am contesting chargeback [Number], relating to the transaction of [Product/Service] purchased by [Customer’s Name] on [Transaction Date] for [Amount]. I am including the following documents as evidence supporting the legitimacy of the transaction:

• Proof of delivery signed by the customer (Attachment A).
• A receipt showing the authorized purchase (Attachment B).
• IP logs verifying the transaction’s origin (Attachment C).

Based on this evidence, I request a reversal of the chargeback.

Sincerely,
[Merchant’s Name]
[Merchant’s Business Name]

This template provides a clear, factual structure for contesting chargebacks. Ensure all necessary documents are attached.

6. Avoiding Common Mistakes

To improve your chances of a successful chargeback dispute, avoid the following errors:

1. Missing Submission Deadlines: Most banks and payment processors, like Visa and Mastercard, impose strict timelines. Missing the deadline results in automatic rejection.
2. Incomplete Evidence: Omitting necessary documents, such as delivery confirmation or customer communication, weakens your argument.
3. Overcomplicating the Rebuttal: Adding unnecessary details confuses the reviewer. Stick to essential facts.

7. When Not to Contest a Chargeback

Not every chargeback is worth contesting. Before submitting a rebuttal, evaluate whether the customer’s claim is valid. According to Mastercard guidelines, merchants should avoid disputing cases with legitimate claims. In situations where the product was damaged or a service was not delivered as promised, accepting the chargeback may be more beneficial.

Conclusion

Chargeback rebuttal letters are a crucial tool for recovering lost revenue. Following the best practices of submitting complete evidence, meeting deadlines, and maintaining a professional tone significantly increases the chances of success.

Key Takeaways:

• Always include identifying information and supporting evidence.
• Customize letters based on the specific chargeback reason.
• Focus on facts and maintain professionalism.
• Partner with services that help prevent chargebacks.

By following these guidelines, merchants can streamline the chargeback rebuttal process and improve their win rates.