When you’re disputing a chargeback, a chargeback rebuttal letter is a vital part of your dispute response. This letter, along with supporting evidence of the customer’s knowledge and approval of the transaction in question, can be used to help you state your case to the issuing bank and in many cases, is your best shot at winning the dispute.
Below, we discuss how to write a captivating chargeback dispute letter and provide an example of what it should look like.
What is a Chargeback Rebuttal Letter?
When putting together your chargeback dispute package, the chargeback rebuttal letter should be attached as a cover. This letter should include the contents contained within the package, as well as a brief statement from you, the merchant, describing why the chargeback is being disputed.
What to include in a rebuttal letter
When drafting a chargeback rebuttal letter, the primary goal is to prove to the card issuer and your payment processor that the chargeback filed by the customer is invalid. As such, it’s important that you include pertinent information that will help these agencies come to that conclusion. Here are some of the most important things to include in your letter:
- Your business name and merchant ID number
- The chargeback case number and/or dispute ID number
- The chargeback reason code
- Details that will allow your payment processor and the card issuer to identify the original transaction (ie. acquirer reference number, the customer’s name, the transaction amount, a description of what was purchased and the date and time of the transaction)
In addition to these details, it’s important to also include some information about the transaction that took place. That should include a description of the goods and/or services you sell, as well as whether you sell in-store, online, or as part of a subscription service. Also provide any evidence you have to indicate your customer’s knowledge and approval of the transaction.
Lastly, make sure to conclude with a formal statement indicating that you’d like the dispute overturned.
Using the right language and structuring your letter
When writing a chargeback rebuttal letter, be sure to use formal language and a traditional letter format. That means a generic greeting such as “To whom it may concern” or “Dear Sir or Madam,” as well as a closing such as “Sincerely” or “Regards.”
When it comes to structuring your letter, begin with your salutation and be quick to get to the point in the body of your letter. Include the information detailed above briefly, using point-form whenever possible to make it simple to read. Try to keep your letter to one page or less and use clear, non-confrontational language.
Sending your chargeback rebuttal letter
When you receive notification of a chargeback, be sure to note the response deadline. Your dispute package, including the chargeback rebuttal letter, needs to be submitted to your payment processor before this deadline lapses. Late chargeback disputes are not accepted.
Ideally, you should consider submitting your response as quickly as possible and no later than three days prior to the deadline. Follow all guidelines that are put in place by your payment processor when drafting your response, which may include information about the submission method, file types and order of documents.
Chargeback Rebuttal Letter Example
Merchant ID: 99999-999-99
Business Name: ABC Store
Dispute ID: 1234567-A
To Whom it May Concern:
My business, ABC Store, sells a variety of gifts and novelties both online and in our bricks-and-mortar retail location.
On November 10, 2020, customer John Smith visited our store in-person and purchased several gifts, including a blanket, a wooden sign and two mugs. The purchase totaled $110.45. Mr. Smith presented his card in person and our employee confirmed his signature.
Mr Smith returned to our store on November 30, 2020 requesting a refund on two items – the blanket and the wooden sign stating that the items were no longer wanted. Our store policy, which is displayed at our register, states that refunds are not offered after 10 days have passed. As such, my employee refused the refund.
After, Mr. Smith chose to dispute the charge through his card issuer, 123 Bank.
Reason code: 4837 (No cardholder authorization)
Attached, you will find evidence indicating Mr. Smith’s authorization of the charge. This includes:
- Photographic evidence of Mr. Smith’s transaction in our store, via our security cameras
- Copy of signed transaction receipt with Mr. Smith’s signature, authorizing the transaction
If you have any questions or require further details, please contact me at (123) 444-5555.
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