Win Chargeback Disputes with Compelling Evidence

Table of Contents

1. What Constitutes Compelling Evidence for a Chargeback?
2. Chargeback Evidence for Retail Merchants
3. Chargeback Evidence for E-commerce Goods
4. Chargeback Evidence for Digital Goods and Subscriptions
5. Chargeback Evidence for Service Businesses
6. Chargeback Evidence for Travel and Hospitality Merchants
7. Fight Chargebacks With Experience

A chargeback can be a frustrating and costly experience for merchants. Beyond losing the sale, businesses may also forfeit the product or service provided and incur additional fees. While some disputes are valid, many chargebacks stem from misunderstandings, buyer’s remorse, or fraudulent claims. The good news is that merchants have the opportunity to challenge these disputes and recover lost revenue—provided they can supply the right evidence.  

The requirements for compelling evidence depend on the chargeback reason code, which identifies why the transaction was disputed. Card networks establish specific guidelines for acceptable proof, but interpretation can vary between banks. What one issuer finds persuasive, another may reject.  

Merchants looking to overturn chargebacks must go through a process known as representment. This involves submitting evidence that proves the transaction was legitimate and that the agreed-upon product or service was delivered. By understanding what documentation holds weight in a dispute, merchants can strengthen their case and improve their chances of reclaiming their funds.

What Constitutes Compelling Evidence for a Chargeback?

The compelling evidence needed to win a dispute and reverse the chargeback will depend on the reason code for that chargeback. In essence, the merchant needs to prove that the claim indicated by the reason code is untrue.

The reason code indicates what justification the customer gave when they disputed the charge. If the merchant can demonstrate that the facts of the transaction don't support the customer's claim, the issuing bank will usually reverse the chargeback.

For example, If the customer claims that their card was stolen, the merchant should submit any and all evidence they have showing that the purchase was in fact made by the cardholder. If the customer claims that they never received their purchase in the mail, your evidence package should focus on shipping information.

Documents commonly submitted as compelling evidence include:

• Receipts of purchase, especially if those receipts have signatures. 
• Shipping records and delivery confirmation.
  
• IP address information.
  
• Correspondence with the customer.
• Records of any other identity verification methods used.

There is no magic bullet for evidence, however. Different issuing banks may have different expectations for what evidence a merchant should provide, and may prefer certain forms of evidence over others.

As you might imagine, some chargebacks are easier to provide evidence for than others, and merchants should make an effort to judge the strength of the evidence they can actually submit before deciding to fight a chargeback.

For example, consider a chargeback where the customer claims they didn't make the purchase. If the merchant has records showing the purchase was made from the same computer and shipped to the same location as previous purchases, it should be an easy win.

On the other hand, chargebacks where the customer claims the product was damaged in shipping can be much harder to reverse, since the merchant will often have no evidence to disprove that claim.

Next, let's go over some examples of what evidence different types of merchants might need to submit in representment.

Chargeback Evidence for Card-Present Retail

For retail merchants operating out of brick and mortar stores, chargebacks are often high in value, frequently resulting from buyer’s remorse after the purchase. In order to dispute these chargebacks and recover your lost revenue, you’ll need to produce evidence disproving the customer's claims about the transaction or the product.

This evidence may include:

• A transaction receipt
• The customer's signature
• A scanned copy of the customer’s photo ID
  

For retail merchants, the advent of the EMV chip has made fraud-related chargebacks much less of a concern, at least for those in compliance. If the merchant inserted the EMV chip or used tap-to-pay and followed all other payment processing rules, they won't be held liable for claims of fraud.

If the merchant processed the transaction without using an EMV chip when one was available, however, they will automatically be assigned liability for any fraud claim. This makes EMV compliance the single most impactful thing retail merchants can do to prevent chargebacks.

Chargeback Evidence for E-commerce Goods

For e-commerce merchants selling and shipping tangible goods and products, the main goal is to produce evidence that proves the customer received the goods and may have even used them.

Here are just a few of the types of evidence you may want to provide, if available:

• Proof of delivery, ideally signed by the customer or with an accompanying photo
• Copies of any and all customer service communications
• Records of AVS & CVV match
• Photos showing the customer using the product (on social media, etc.)

E-commerce merchants should always use Address Verification (AVS) and CVV matching to prevent online credit card fraud.  This can go a long way when fighting future chargebacks.

To prevent and fight chargebacks associated with account takeover fraud, consider using two-factor authentication. Customers can be required to set up two-factor authentication using a phone number or authenticator app. If that seems too heavy-handed, you can provide a small reward for customers who do so.

You can also simply require the customer to click a link sent to the email address they signed up with whenever they access their account from a new device. These methods do add friction in some cases, but they also prevent fraud and provide valuable evidence to fight illegitimate chargebacks.>

Chargeback Evidence for Digital Goods and Subscriptions

E-commerce merchants that sell digital goods or subscriptions typically have the biggest challenge when it comes to producing compelling evidence – simply because it’s difficult to prove the product was actually delivered.

If you operate in this industry, the best piece of evidence you can offer is an IP match verifying that the customer’s IP address matches the address associated with the credit card used on the transaction.

You may also be able to use that IP address to show they logged into your system to download or use a product.

All in all, potential evidence for digital goods merchants includes:

• AVS & CVV match
• IP address match
• Location data
• Copies of any emailed invoices
• Copies of all customer service communications
• Proof of usage, ideally with IP addresses
• The terms and conditions the customer agreed to at the time of purchase
  

Chargeback Evidence for Service Businesses

Service-based businesses face unique challenges when it comes to chargebacks. Unlike physical goods, services are intangible, making it harder to provide concrete proof of delivery or usage. However, with the right documentation and evidence, service providers can successfully dispute illegitimate chargebacks.

One of the most common reasons for chargebacks in service-based industries is the customer’s claim that they did not receive the service or that it was not as described. To counter these claims, merchants need to provide evidence that clearly demonstrates the service was rendered and that the customer was aware of the terms and conditions.

Here are some key pieces of evidence that service-based businesses can use to fight chargebacks:

• Service agreements and contracts
• Proof of service delivery
• Communication records
• Invoices and payment records
• Customer feedback or reviews
• Terms and conditions

Consider a scenario where a customer disputes a charge for a landscaping service, claiming they never received the service. If the merchant can provide a signed contract, email correspondence discussing the project, and a photo of the completed project, it becomes much harder for the customer to justify their claim. Additionally, if the customer had previously expressed satisfaction with the service in an email or review, this can further strengthen the merchant’s case.

Chargeback Evidence for Travel and Hospitality Merchants

For travel agencies, ticketing merchants, hotels, and vacation rentals, the complications of authenticating an online transaction are compounded by disputes over fees and additional charges.

In general, the best types of evidence in travel chargebacks include:

• Records of AVS & CVV match
• Copies of tickets and check-in confirmations
• The terms and conditions the customer agreed to at the time of purchase
• Evidence that those terms were clearly provided to the customer
• Documentation of the reasons for any additional charges
  

Fight Chargebacks With Experience

It’s important to note that these are just general guidelines. Every chargeback dispute is different and requires custom-fit evidence to prove your case. Also keep in mind that every card network has different rules, regulations, and processes, and following these is vital if you want to see success.

In addition to the right evidence, you'll also need a rebuttal letter that sums up your case. Check out our article on chargeback rebuttal letters to learn how to create an effective one.

Fighting chargebacks only gets easier with experience, but if you don't have experience of your own to lean on, you can always take advantage of those who do. A good chargeback management company will have employees with years of experience who will fight chargebacks on your behalf to ensure you recover as much revenue as possible.