Chargebacks can happen for many reasons — from fraud claims to product or billing disputes — and knowing how to handle them is key to protecting your business. This guide breaks down the most common chargeback reasons and explains how to dispute each one effectively with the right documentation and approach.

Fraud – Card Not Present (CNP)

What's Happening?

The customer's bank is saying the transaction was processed without the cardholder's permission. This usually happens with phone, mail, or online orders where the card wasn't physically present.

How to Prevent This

• Sign up for fraud protection programs like Visa 3D Secure or Mastercard SecureCode - they're your best defense!

• Always use Address Verification Service (AVS) and ship only to confirmed addresses for online orders

• Require CVV codes for every transaction

• Make sure your business name on customer statements matches what they'll recognize

• Keep an eye out for suspicious orders and trust your instincts

If You Get a Dispute

• Show proof you used fraud protection tools (if any) and got authorization

• Provide customer details you collected: name, email, addresses, phone number

• Include clear transaction records with valid authorization codes and description of goods/services

• Provide delivery confirmation to the AVS-confirmed address

• Provide evidence the customer used the service/merchandise

Credit Not Processed

What's Happening?

The customer says they returned merchandise or canceled services but never received their refund. We know returns happen - let's make sure the refund process is smooth!

How to Prevent This

• Make your refund policy crystal clear at checkout (for card-present transactions make sure to include refund policy on the receipts)

• Process refunds quickly and to the same card they used for purchase

• Deliver goods and services on time as promised

• Use the correct transaction codes when processing refunds

If You Get a Dispute

• Proof the customer agreed to your refund policy

• Written explanation why a refund doesn't apply in this case

• Evidence the customer never tried to cancel before filing the dispute

• Proof that services were provided or the order was fulfilled as expected

Services Not Provided / Merchandise Not Received

What's Happening?

The customer is saying they never received what they ordered. Delivery issues happen - let's make sure we can track everything!

How to Prevent This

• Always get signed proof of delivery - it's worth the extra step

• Only charge the card after you've actually shipped the item

• Put expected delivery dates on receipts and invoices

• If there's a delay, reach out to the customer and offer a refund if needed

• Keep customers informed about their order status

If You Get a Dispute

• Signed delivery confirmation or tracking showing it was delivered

• Proof services were provided or made available

• For digital goods: IP logs, download records, or email confirmations

• Photos or video showing delivery or usage

Fraud – Card Present (CP)

What's Happening?

The customer claims the in-store transaction wasn't authorized by them. This is rare when you follow proper procedures!

How to Prevent This

• Always use chip readers - they're your best protection against fraud

• Avoid manual entry whenever possible - chips and taps are much safer

• Get PINs when applicable for extra security

• Trust your instincts if something feels off about a transaction

If You Get a Dispute

• Provide signed or electronic sales receipts

• Show the transaction was processed with a chip or PIN

• Demonstrate the chip terminal was working and used correctly

Services/Merchandise Defective or Not as Described

What's Happening?

The customer received their order but says it wasn't what they expected or it was damaged.

How to Prevent This

• Be crystal clear about what you're selling - accurate descriptions prevent disappointment

• Have customers sign to confirm items are in good condition at pickup

• Address customer concerns immediately when they first reach out

• Clearly state your refund and cancellation policy and make it available to customer

If You Get a Dispute

• Receipts, contracts, or order forms showing what was agreed to

• Proof that the customer accepted 'as is' items

• Proof you offered a replacement or repair

• Evidence showing the customer didn't follow your return policy

• Written rebuttal addressing all issues and documenting that customer failed to follow policy

Duplicate Processing

What's Happening?

The same transaction was processed twice on the same date, card or amount. This happens, but it's easy to avoid with good habits.

How to Prevent This

• Reconcile your transactions daily - catch duplicates early

• If you catch a double charge, void/reverse it immediately

• Accept only one payment method per transaction

• Double-check before hitting 'submit' on any transaction

If You Get a Dispute

• Receipts proving they were actually two separate transactions

• Invoices with different items or amounts

• Proof you already issued a credit or reversal

Paid by Other Means

What's Happening?

The customer says they already paid with cash, check, or another card. Clear payment documentation prevents these disputes!

How to Prevent This

• Accept only one payment type per sale - keep it simple

• If multiple payment methods are used, document everything clearly on one receipt

• Make sure you only bill once per transaction

If You Get a Dispute

• Proof the alternate payment wasn't valid or never happened

• Documentation showing these were separate transactions

• Evidence you never received duplicate payment

Data Entry Error

What's Happening?

The customer is saying there was a mistake at checkout - wrong amount, wrong code, or maybe debit instead of credit. These are usually quick to sort out!

How to Prevent This

• Double-check transaction amounts before processing

• Use the correct codes for credits versus sales

• Make sure currency matches what the customer expects

• Write receipts clearly and calculate totals carefully

If You Get a Dispute

• Copy of the receipt showing the correct amount and transaction type

• Transaction records proving currency and account were accurate

• Documentation showing no error occurred

No Valid Authorization

What's Happening?

The card issuer is saying the transaction wasn't properly authorized. This is all about following the right procedures - we'll help you get it right!

How to Prevent This

• Always get that 6-digit authorization code for every transaction (including refunds!)

• Never continue after a decline - it's declined for a reason

• Don't split a declined transaction into smaller amounts

• Check that the card isn't expired before processing

• Provide merchandise within the valid timeframes (same day for in-person, within 7 days for phone/online)

If You Get a Dispute

• Proof of chip terminal authorization

• Documentation showing the card wasn't expired at transaction time

• Valid 6-digit authorization code with date and time stamp

• Evidence the transaction was settled within the valid authorization window

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We're Here to Support You!

Remember, chargebacks are a normal part of doing business, and you're not alone in handling them. We're always here to help you through the process. If you have questions about any dispute or need guidance, don't hesitate to reach out to your merchant services team.

Via email: merchantsupport@b2bsoft.com

Via the phone: 212-742-2353

Quick Tips for Success:

• Keep detailed records of every transaction

• Respond to disputes quickly - you typically have 7-10 days

• Use chip readers and get authorizations for everything

• Communicate clearly with customers to resolve issues before they become disputes

• When in doubt, reach out to us - we're happy to help!

You've got this! Keep up the great work, and remember - good documentation and customer service are your best defenses