Automated dispute representment: More revenue, less work, better win rates

The modern chargeback system is rigged against merchants. Cardholders can dispute transactions with a few taps, and issuers are incentivized to side with them since they bear the financial burden of chargebacks.

This creates an environment ripe for chargeback abuse, where legitimate transactions are falsely disputed. According to Nasdaq, friendly fraud accounts for 86% of credit card fraud.

Yet, most merchants lack the bandwidth to challenge these cases. Teams don’t have the hours to track down evidence, compile documents, draft responses, and analyze success rates for every single friendly fraud dispute.

As a result, merchants end up on the losing side of this equation:

• Direct revenue loss from lost sales and dispute fees.
• Automatic siding of issuing banks with cardholders due to your dispute history.
• Reduced approval rates for future transactions as issuers treat you as a high-risk business.

The takeaway is clear: dispute management has outgrown manual methods. Merchants need a scalable, efficient way to contest all illegitimate disputes and win without draining resources. 

This is the challenge Solidgate solves with our AI-powered Dispute Representment and its new feature – Autorepresentment. 

Manual dispute representment needs to go

• It drains time and money: Handling a single chargeback manually can take hours of work per dispute to collect receipts, communication logs, proof of delivery, drafting rebuttal letters, etc. This pulls your support and billing teams away from their core responsibilities. The cost is steep: for every $1 in disputed transactions, merchants lose around $2.40 in fees and labor.
• Lost revenue from unchallenged and unwon disputes: Many merchants win only a fraction of the disputes they contest (often ~20–30%), making manual efforts feel ineffective. In fact, two-thirds of merchants forgo disputing certain chargebacks altogether, resigning themselves to losses. That leaves a huge amount of potentially recoverable revenue on the table. 
• Even more chargebacks in the future: Issuer banks are inclined to automatically approve chargebacks against your MID as they see your history of uncontested or lost chargebacks.
• Lowered payment acceptance rate: When banks see that most chargebacks filed against you were successful, trust in your business diminishes. Approving your transactions becomes riskier than blocking them.

Solidgate’s Autorepresentment: Dispute resolution in a flash

Solidgate’s automatic dispute representment eliminates these challenges for PayPal and card chargebacks. Autorepresentment acts as an always-on dispute analyst and attorney that fights disputes immediately, intelligently, and effectively.

Automated dispute analysis

When a dispute or chargeback is received, Solidgate’s system automatically reviews the case details, identifies the dispute reason and any fraud flags, and cross-references the transaction in question against a wealth of data in the Solidgate platform. This includes, but is not limited to:

• The original transaction data
• The customer’s purchase history (e.g., past successful transactions)
• Subscription status (to catch claims like “canceled subscription” or accidental rebills)
• Relevant business metadata (product descriptions, terms of service agreed to, etc.),
• Anti-fraud results (device fingerprinting, geolocation, risk scores from the initial payment), and more.

The system then determines the most compelling evidence and strategy to rebut the specific claim. No more manual digging; the facts surfaced in seconds.

Compelling evidence generation in a minute

Once the analysis is done, Autorepresentment assembles a tailored evidence package within a minute. Using Solidgate’s sophisticated evidence generation logic, it pulls in the proofs that matter most for the case type. 

For example, if a customer claims an item wasn’t received, the system can attach delivery confirmations or usage logs; if they claim “unauthorized transaction,” it can provide evidence of prior successful payments by the same user, matching user login IP addresses, or 3-D Secure authentication results. 

Within minutes after receiving the dispute notification, every piece of relevant documentation is compiled and formatted into a clear, compelling response. 

Fully automated submission

Once the evidence is generated, the system submits the representment through the appropriate channel automatically. You no longer have to navigate the complexities of multiple channels, whether it’s banks or APMs. Each network has its own submission process, documentation requirements, and timelines, but you don’t need to switch between them or adjust your approach. We route it all for you on autopilot.

Self-improving system

Our solution is designed to get smarter with every dispute. The Autorepresentment engine employs a targeted optimization framework that adapts evidence and tactics to each specific scenario for maximum impact. It leverages insights from thousands of past disputes to refine what works best for different reason codes and payment platforms. 

Unified coverage for cards and PayPal

Solidgate’s Autorepresentment handles disputes across all major payment channels in one place. This is a huge advantage for merchants selling through multiple payment methods. The Autorepresentment feature integrates with Solidgate’s payment orchestration engine, ensuring consistent, optimized representment for every dispute, whether card or PayPal, with no extra effort.

The result: More revenue, less work, better win rates

• Boosted operational efficiency: By offloading the entire representment process, Solidgate’s solution is giving your teams hours of their week back. Those efficiency gains scale with your dispute volume – the more disputes, the more time saved by automation. Plus, you know that no dispute will slip through the cracks due to human error or overload.
• Immediate ROI: Every fraudulent chargeback defeated isn’t just a win – it’s a deterrent against future fraud. By converting disputed transactions back into sales, merchants boost revenue without acquiring new customers. It’s about squeezing more value from existing sales.
• Higher win rates: By automatically generating and submitting high-quality, tailored evidence for every dispute, we’re ensuring merchants win more chargebacks. On average, automated tools like this have been shown to increase win rates by 60-65%, meaning more money stays in your pocket.
• Lowered chargeback rate: Indirectly, a high number of won disputes signals to banks that disputes filed against you aren’t always legitimate. Instead of rushing into approval, banks will investigate the legitimacy of disputes against you more carefully and are more likely to deny the cardholder’s request.

• Better acceptance rate: If you win more disputes than you lose, banks view your business as a more trustworthy merchant. This reputation can indirectly improve your approval rates, as banks are more likely to trust merchants who actively contest disputes.

Autorepresentment feature is available now for PayPal disputes and card chargebacks for all merchants using our AI dispute representment. Contact your account manager to get started.