Understanding Chargebacks: What They Are, Why They Happen, and What You Can Do
If You Have a Chargeback Right Now — Act Fast
Chargeback deadlines are strict. If you miss the deadline, you lose the case. There are no exceptions.
If you receive a chargeback notice, take these steps right away:
1. Find Your Response Deadline
You usually have 7–10 days from the date the chargeback was filed, not when you saw it. Check your notice now.
2. Do Not Issue a Refund
A chargeback already reverses the payment. If you also refund it, you lose the money twice. Never refund a transaction with an active chargeback.
3. Gather Your Documents
Collect all proof related to the sale:
– Delivery confirmation
– Order details
– Customer messages
– Signed terms or policies
– Any other supporting evidence
4. Contact The Chargeback Response Team At The Processing Bank
Submit your response before the deadline. The bank’s chargeback team handles disputes. You must work directly with them.
Bankful can provide management tools and guide you, but we cannot submit disputes for you.
Disclaimer: Chargeback timelines and requirements may vary by payment processor, card network, and transaction type.
What Is a Chargeback?
A chargeback happens when a customer disputes a charge and their bank takes the money back.
- Refund: You return the money
- Chargeback: The bank takes the money and adds a fee
Fees usually apply even if you win.
Chargebacks Can Happen Months Later
Chargebacks can be filed 180+ days after a sale. Keep records long after a transaction is complete.
Why Chargebacks Exist
Chargebacks protect customers from fraud and bad transactions.
Why It Feels Unfair
- Customers get refunded first
- You must prove the charge
- Fees apply either way
- Friendly fraud is hard to prove
Why This Is Your Responsibility
When you opened your merchant account, you agreed to terms with your processing bank.
- Accepted the payment
- Promised the product or service
- Responsible for disputes
Bankful provides tools and support but does not decide chargebacks.
Common Reasons for Chargebacks
1. True Fraud
Unauthorized card use.
2. Friendly Fraud
Customer disputes a valid purchase.
3. Merchant Error
- Wrong charge
- Missing refund
- Wrong item
- Unclear policies
Chargeback Process
- Purchase
- Dispute
- Customer credited
- Chargeback filed
- Merchant notified
- Response window
- Decision
- Possible escalation
How Chargebacks Affect Your Business
- Fees per dispute
- Higher chargeback ratio
- Risk of account closure
- Future processing challenges
How to Respond
Accept It
If valid, accept and focus on prevention.
Contest It
If invalid, fight it by submitting proof through the bank’s chargeback department.
- Delivery confirmation
- Customer messages
- Order records
- Policies
- Transaction data
Your Responsibilities
- Monitor and respond on time
- Keep records 180+ days
- Show clear policies
- Use fraud tools
- Respond to customers quickly
- Track chargeback rate
How to Prevent Chargebacks
Checkout
- Clear billing name
- AVS/CVV required
- Show policies
- Send confirmations
Fulfillment
- Use tracking
- Communicate delays
- Keep records
Subscriptions
- Send reminders
- Easy cancellation
- Save consent
Fraud Prevention
- Review risky orders
- Use 3D Secure
- Monitor activity
Customer Service
Make it easy for customers to contact you.
Important Note
Chargeback decisions are made by banks and card networks. Outcomes are not guaranteed.
Still have questions?
If you’re an existing Bankful merchant, the fastest way to get help is to submit a support ticket — our team monitors the queue continuously and you’ll get a tracked, documented response.
🎫 Submit a ticket: here
Prefer to reach us another way? We’ve got you covered:
💬 Live chat — click the chat icon in the bottom right corner of this page
📧 Email: support@bankful.com
📞 Phone: 888-882-9494
Last updated: April 2026