Cardholders have the right to dispute any transaction they do not recognize or believe was done in error. The most common claims for chargebacks are: incorrect payment amount was charged to the cardholder, the cardholder’s item was not received, or the items or services received by the cardholder were not as described. When a cardholder disputes a charge for any reason, this is known as a chargeback. The chargeback system and process are run by the card brands (Visa, MasterCard, Discover, American Express, etc.)–they make all decisions concerning chargebacks. If you do receive a chargeback, each card brand has their own process, so be sure to follow their instructions closely. It is common for chargeback notifications to be mailed in nondescript envelopes.
If you receive a chargeback notification in the mail, please respond as quickly as possible. There are often limitations imposed and if the response date has passed, you may be left with little recourse. If you believe your business will be liable for a high number of chargebacks, please reach out to our Support team regarding our chargeback management tool, Dispute Manager.