Dispute Evidence Best Practices
When a cardholder disputes a purchase as unauthorized, misrepresented, or damaged, you have the right to counter their claim by providing supporting evidence. Our goal is to assist merchants in defending themselves. Below are some best practices to aid you:
Organize the evidence
Before you submit evidence to counter a dispute, you should abide by the following guidelines:
Present chronologically: Organize evidence in the order events occurred to create a clear timeline of the transaction and subsequent communications.
Group by type: Separate receipts, communications, policies, and system logs into distinct sections for easier reference.
Include summaries: Provide brief explanations of what each piece of evidence demonstrates to guide the reviewer.
Maintain clarity: Ensure all of the text is readable and that images are clear, with sufficient contrast and resolution
Keep evidence relevant to the dispute reason and to the point
Card issuers handle numerous manual dispute responses daily. Lengthy explanations don't increase persuasiveness, and irrelevant evidence, such as a return policy for a claim of non-receipt, can confuse the argument. It's crucial to maintain clarity and conciseness, clearly stating why a claim is invalid and supporting it with appropriate evidence, while maintaining a neutral, professional tone. Including too little evidence weakens your case, while an overload of information may obscure key points.
For example:
John Smith placed a to-go order from our company on [date] using a Visa credit card. He came into our store on [date/time] to pick up his to-go order, as shown in the proof of order pickup provided, so the claim that the product was not received isn’t true.
Limit evidence file length
Along with keeping your evidence factual, professional, and concise, the size of your files is also important to keep in mind. Card issuers will not comb through lengthy files to sort through out the relevant evidence relating to the chargeback reason code.
For example, if the dispute network reason code indicates “Canceled Merchandise”, but the customer didn’t comply with your cancellation policy, you should not submit your entire Terms and Conditions agreement. Instead, upload only the relevant cancellation policy section and use a callout or arrow to emphasize the details their customer violated.
You can also decrease file size by:
Reducing font size
Single spacing documents
Shrinking images within PDFs
Include proof of customer authorization
Fraudulent disputes make up a significant portion of all disputes. To effectively counter these claims, it's crucial to present evidence that the cardholder was aware of and authorized the transaction. Essential elements to include in a compelling response are:
Include proof of service and delivery
Another high frequency dispute reasons often include:
Claims that products or services were not delivered
Delivered items were defective or unsatisfactory
Items were not as described
How to Refute Claims
For Physical Merchandise:
Provide proof of shipment and delivery that includes the full delivery address, not just city and postal code.
For orders with a “Ship to” name different from the purchaser, offer documentation explaining the difference, as this is common for gift purchases but can be a dispute risk.
For Digital Goods:
Include evidence such as an IP address or system log showing the customer downloaded or used the service.
Include a copy of your terms of service and refund policy
In the event of disputes, the fine print is crucial. For returns or refunds, it's essential to show proof that the customer agreed to and understood the terms of service at checkout, or failed to follow the policies. Include a clear screenshot of your terms of service presentation during checkout, with the relevant policy highlighted.
However, avoid including the full text of your policy, as card issuers won't sift through it to find the pertinent details.
Misunderstandings
For disputes arising from misunderstandings, your customer can inform their card issuer that they no longer wish to contest the transaction. However, we still recommend submitting evidence to validate the payment and to ensure the card issuer knows you are not accepting the dispute.
If you agree that the customer should retain the disputed funds, accept the dispute instead of having the cardholder withdraw it for a regular refund. Remember, card networks assess based on the number of disputes received, not on how many you win or lose—a withdrawn dispute still counts as a dispute.
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