Every year, businesses lose billions to chargebacks—many of them unfairly filed. According to industry data, merchants contesting chargebacks with a well-prepared chargeback rebuttal letter have a 70% higher chance of winning disputes than those who don’t. Yet, fewer than half of merchants consistently respond to chargebacks, often leaving valid transactions undefended. 

In this guide, we’ll show you how to craft an effective chargeback rebuttal letter that banks and card networks can’t ignore. From structuring your argument to presenting evidence, we’ll walk you through every element needed to fight chargebacks like a pro. 

What is a chargeback rebuttal letter?

When a chargeback is unfairly filed, merchants have the right to challenge the claim through the dispute representment process. This involves presenting evidence that proves the transaction was valid. 

At the heart of this process is the chargeback rebuttal document—a formal response that allows merchants to explain why the chargeback is unjustified and provide supporting evidence to validate the transaction.

Why chargeback rebuttal letters matter?

Chargeback rebuttal documents play a crucial role in the dispute representment process:

• Boosting your dispute win rate: Banks and card networks favor merchants who present comprehensive, structured evidence. Your chargeback letter enables you to provide key details like invoices, signed receipts, tracking information, or customer communications.
• Understanding customer behavior: Creating a chargeback rebuttal letter provides insights into why disputes happen, shedding light on areas for improvement to reduce future chargebacks.
• Ensuring compliance: Chargebacks are regulated by various rules. A comprehensive rebuttal ensures compliance and can be crucial for audits or legal matters.
• Revealing operational gaps: The rebuttal process can reveal recurring issues—like unclear billing descriptors or service misunderstandings—offering opportunities to refine terms, conditions, and customer service.

Main aspects of a chargeback rebuttal document

Understanding the key elements of a chargeback rebuttal document is key to successfully disputing chargebacks. Each component serves a specific purpose, providing clarity and evidence to support your case. Here’s a breakdown of what to include:

1. Introduction and reference information

Start with a concise introduction, clearly identifying the chargeback and its details, including the reason code, buyer information, and date. Reference relevant policies tied to the transaction, like your billing or refund terms.

Compelling evidence

(Date)

Dear Sirs,

We received a chargeback from one Buyer with Reason Code 10.4 (Fraud: card not present). We checked all the info on this Buyer (example@gmail.com, Card number 424242XXXXXX4242).

Our billing policy clearly describes our services, which you can check here: https://example.com/billing-policy

Creating an account and paying without accepting our Terms of Use, Privacy Policy, Refund Policy, and Risks Notice is impossible. As the Buyer paid, we consider that they checked, read, and were OK with them.

2. Statement of dispute

Clearly express your intent to dispute the chargeback and summarize the evidence you will present. Highlight that the buyer received and used the service or product.
Example:

We want to dispute the chargeback (received date 01-01-2024) as we have compelling evidence of providing the service ordered. Please address the appropriate department with the proofs in the attachments & explanations below.

3. Buyer verification

Provide evidence of the buyer’s identity and transaction legitimacy, such as IP logs, device information, or login activity showing the buyer’s activity on your website. Example:

The Buyer is a real person:

1. … (pages 3-5)
2. … (page 6)
3. … (pages 7-11)

4. Buyer’s usage of the service

Show that the buyer actively used your product or service by including logs, screenshots, or usage reports. Example:

The Buyer has been actively using the website

1. …. (pages 12-13)
2. … (pages 14-15)

5. Payment and refund information

Highlight the buyer’s payment history, visible refund options, and any lack of refund requests. Example:

The buyer had the complete history of payments visible in their account on the website. There is a visible button to ask for a refund, but we have never received any refund requests from the Buyer – you may check the evidence of the Payment history and proof that the user agreed with our Policies and terms of Use (pages 16-17)

6. Violation of chargeback rules

Reference Visa or Mastercard guidelines that require buyers to contact the merchant before filing a chargeback. Highlight any failure to follow these steps on the buyer’s side. Example:

According to Visa and MasterCard rules, the Buyer must contact the Seller for a refund before making a chargeback, but this Buyer didn’t do that, neither via Live Support nor via Website functionality. The Buyer understood which services they had paid for and used them in full size. They contacted the bank directly instead of asking for our help or a refund.

8. Disproving the Fraud Claim
If the reason for the chargeback involves fraud, provide evidence that disputes this claim. For example, if the reason for the chargeback is fraud, present proof that the buyer knowingly made the purchase and agreed to your terms. Example:

Moreover, the Buyer states that the reason for a chargeback is 10.4 (Fraud-card not present). As you can see from the evidence presented, this is not true. The Buyer (who is also a Cardholder) was well aware of the nature of this payment. They read (or should have read) all the Policies about the payments; hence, they have no right to dispute this transaction as unauthorized.

9. Conclusion and call for resolution

Wrap up your letter with a professional request to resolve the chargeback in your favor. Example:

Kindly find the screenshot of the Policy below:

Please see this Policy for details: https://example.com/billing-policy

We must dispute this Buyer’s chargeback and are asking for your help in resolving this case within the merchant’s rights protection.

10. Contact information

Provide your contact details for any follow-up or further communication. Example:

Kind regards,

Risk Management Department, Online payments & processing

Email: support@solidgate.com

Download a customizable chargeback rebuttal letter sample in PDF or DOCX format.

Solidgate tips for crafting an effective chargeback rebuttal letter

When disputing a chargeback, it’s essential to prepare a well-organized and thorough rebuttal document. Below are key tips to help ensure your document is both compelling and compliant with Solidgate’s guidelines:

1. Submit Compelling Evidence: Provide clear evidence, such as payment history and communication, to validate the transaction.

2. Stick to the deadline: Submit documents within 11 days (7 days for high-risk cases) to avoid automatic acceptance of the dispute.

3. Use the correct file format: Ensure all documents are in DOCX format to meet Solidgate’s requirements.

4. Limit the number of pages: Keep your rebuttal under 19 pages, focusing on the most relevant details.

5. Maintain consistent layout: Use either portrait or landscape format for all pages to improve readability.

6. Monitor your chargeback ratio: Be aware that winning does not remove the chargeback’s impact on your ratio or fees.

7. Customize for each case: Tailor your rebuttal to address the specific chargeback reason and circumstances for a stronger case.

8. Remember the three Cs of rebuttal retter writing: Concise. Clear. Compelling. These principles should guide every chargeback response. Keep it factual and professional, avoiding frustration or anger, even when the chargeback feels unwarranted. Stick to the facts and focus on providing a clear and compelling narrative.

9. Use Solidgate AI dispute representment: If you’re a Solidgate merchant,  you can respond to disputes directly through the new Solidgate Hub or Disputes API.

Reasons for chargeback after a refund

• Delays in the bank’s system: Delays in the issuing bank’s systems can cause chargebacks, even after refunds are initiated by the merchant.
• Customer-initiated chargeback: Customers may file a chargeback after speaking with customer service, causing an overlap when a refund is issued after the chargeback is initiated.
• Refund amount discrepancies: If a merchant issues a partial refund instead of a full one, the customer may file a chargeback to recover the remaining amount.
• Bank technical issues: Technical problems on the issuing bank’s end can cause refund failures, prompting the customer to file a chargeback.

In such cases, provide proof of the refund during representment, though chargeback fees and ratio impacts still apply.

Chargeback rebuttal letter timeline

Here is a general timeline for chargeback rebuttal letters:

1. Day 1-2: Receive notification of the chargeback dispute and review the transaction details. 

2. Day 3-6: Gather all relevant evidence and supporting documents. Ensure the evidence addresses the specific chargeback reason code.

3. Day 7-11: Submit the chargeback rebuttal letter, ensuring all evidence is clear, concise, and organized. If you are a Solidgate merchant, you usually have 11 days to submit your documents; however, note that some banks require evidence to be submitted within 7 days. 

4. Day 11-60: Wait for the issuing bank’s response and decision on the chargeback dispute. During this period, the bank will review your rebuttal and the evidence provided.

5. Day 61+: If the chargeback is reversed, funds are returned. If not, merchants may have the option to escalate to arbitration, which can extend the timeline further.

To sum it up

• Be Detailed: Tailor rebuttals to the chargeback’s circumstances.
• Stay Timely: Always meet submission deadlines.
• Provide Proof: Present clear, organized evidence.
• Consider Ratios: Weigh the impact on your chargeback ratio.
• Commit to Quality: A strong rebuttal protects your business and reinforces trust in legitimate transactions.