Online commerce has made it easier for businesses to reach wider markets with lower overheads than ever before. Disputes are a part of the risk of running a small business and having an online store. Here is what that process looks like::
The cardholder/customer directly contacts their card issuing bank to dispute a charge.
The cardholder's bank sends a chargeback request to the credit card company, taking the disputed amount and a $15 fee from the merchant's connected bank account.
The cardholder’s issuing bank asks for evidence that the charge was legitimate.
The merchant will receive a confidential email from the Payments Team via the email on file with the Merchant account as well as a push notification.
Gather all the evidence to prove the charge was valid. Check out this article to ensure the evidence is strong enough to win a dispute.
The evidence is submitted through the app, and the response will be forwarded to the cardholder's bank. Use this article as a guide on how to submit the evidence.
The cardholder's bank reviews the evidence. The review can take up to 90 days after the response is submitted.
The credit card company resolves the chargeback.
If you win the chargeback, the cardholder's bank will return the disputed amount to you, and the $15 dispute fee will be refunded back to you. If a dispute is not resolved in your favor, the fees will remain away from your account.