Important:
This article is not provided as a substitute for any legal advice from an attorney and solely constitutes general information. Guesty assumes no responsibility or liability for any errors or omissions in the content of this article.
Chargeback representment is the process by which merchants present evidence to issuing banks to fight chargebacks. If the evidence is compelling enough, the chargeback is reversed. You have 15 days to initiate a representment request from the day a chargeback occurs.
1. Review chargeback
Review the chargeback details and reason/reason code. The reason code represents what the bank considers to be the reason for the chargeback, whether that claim is true or not. The merchant is responsible for proving the cardholder's claim is false. The most common reason codes are fraudulent charges, unauthorized transactions, and service not received, but there are dozens more. See the full list here.
2. Compile dispute package
The dispute package is what you'll be sending to the issuing bank to plead your case. it includes a dispute letter, which summarizes your chargeback case, and contains supporting evidence, such as purchase receipt, proof of refund, Terms & Conditions, email confirmations, etc.
Guidelines for putting together a dispute package
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Identify yourself:
- Merchant account number and name.
- Make sure the number assigned to the chargeback is correct.
- The transaction/chargeback amount.
- The consumer/card number (45123xxxxxx4001) that was used for the transaction.
- Make sure you are responding to the accurate reason code for the chargeback.
- Make sure you are responding to the specific chargeback with its unique ARN number (Acquirer Reference Number)
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Keep it simple:
- Be concise in your dispute letter.
- Your letter should be no more than one page in length.
- Make it clear that the cardholder's claim is false.
- Explain why the transaction was valid.
- Keep your sentences short.
- Incorporate bullet points.
- Use active verbs.
- Use clear structure.
- Reiterate what you want, which is to reverse the dispute.
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Make it specific to the chargeback reason code:
- Rebuttals should be customized to every case/situation.
- Avoid using templates.
- The reason code pinpoints why the client is disputing the sale. Use it to pinpoint or counter the chargeback claim/reason.
- Do not provide additional information or documents that do not pertain to the reason code.
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List all attached documents:
- Always attach compelling evidence. For example, this can be evidence that the customer is satisfied with the purchase, the quality of the items or services was acceptable, the purchase was made by an authorized member of the cardholder's household.
- Always save a copy of the dispute package before sending a response.
- Always recap and make sure that all documents listed are in fact provided.
Example of a dispute letter
Merchant ID: 94080000000000 XYZ INC
Case ID number (Dispute ID): 20220000000
Dispute Total $800.26
To whom it may concern:
Please note that we do not accept this chargeback as the client’s claim is false.
This is not a fraudulent/unauthorized transaction.
On MM/YYYY, the cardholder visited our property.
- ID verification was completed.
- The credit card was confirmed.
- Reservation was approved.
This is an invalid chargeback dispute for reason code [Chargeback code][Chargeback description]. Please see the attached evidence.
- Copy Invoice (page 2)
- Copy signed receipt (page 2)
- Transaction Response screenshot (page 3)
Please contact our team if you have any questions about this case XYZ.INC@GMAIL.COM
Kind regards,
XYZINC
200 xyz street, ON.
Canada
3. Submit
Submit a representment request to the issuing bank here(for U.S.-based entities).
- Enter the case ID/dispute (chargeback) number, case (chargeback) amount, the email address that was used for GuestyPay registration, and click Upload File as seen in the image below.
Note:
The case ID number will be sent in the chargeback notification letter to the email address that was used for GuestyPay registration. You can also find it in your GuestyPay reports. Click here for more information.
2. Select and upload the Dispute Package, including all the supporting documents as seen in the image below:
Dispute package file advice from the bank
To properly format documents and images for upload, ensure adherence to the following guidelines:
- Include high-resolution images for clear review.
- Utilize either the dashboard or API for file uploads, noting the restrictions on acceptable file types and combined file size:
- Accepted file types are limited to PDF, JPEG, or PNG formats.
- The total file size must not exceed 4.5MB.
- Ensure the combined page count remains under 50 pages.
- Consider using compression tools like Smallpdf for file size management (if absolutely necessary)
- Opt for a minimum font size of 12 points +.
- Ensure documents adhere to US Letter or A4 size, with portrait orientation (landscape-oriented screenshots are permissible).
- Use bold text, or arrows to draw attention to pertinent information.
- Avoid using color highlighting text or screenshot.
- Avoid uploading colored documents.
- Crop the screenshot to the area of interest and circle any key components (for example, delivery confirmation or signature)
- Use text fields in the dispute evidence form to describe the image content and its relevance to your response.
3. You will receive the issuing bank’s decision within 30 business days after submitting the dispute package. If the bank decides that the cardholder's chargeback claim is invalid, you win the dispute and the disputed amount will be reversed to your processing account.