Dispute Resolution Process: Step-by-Step Playbook

Overview

This playbook covers the complete dispute resolution process for e-commerce merchants. Whether you're handling your first chargeback or your hundredth, following a systematic process dramatically improves your win rate and reduces the time spent on each case.

Stage 1: Notification received

When you receive a chargeback notification, immediately record the key details: case number, reason code, transaction amount, deadline, and card network. Tag the dispute in your tracking system.

Stage 2: Initial assessment (first 24 hours)

Determine whether to fight or accept. Check: Is the dispute legitimate? Do you have evidence to counter the claim? Is the amount worth the effort? If the customer has a valid complaint, a refund may be cheaper than fighting.

Stage 3: Evidence collection (days 1–5)

Gather all relevant evidence organized by category: transaction authorization (AVS/CVV match, 3D Secure), fulfillment (tracking, delivery confirmation), customer communications (emails, chat logs), and policies (return policy, terms of service).

Stage 4: Build the response (days 5–10)

Write your rebuttal letter addressing the specific reason code. Attach evidence in labeled exhibits. Review everything for completeness and clarity.

Stage 5: Submit and track

Submit through your processor's portal well before the deadline. Save a copy of everything submitted. Set a reminder to check the outcome.

Stage 6: Outcome and follow-up

If you win, the funds are returned. If you lose, analyze why and update your processes. Track win rates by reason code to identify patterns.

Prevention feedback loop

Every dispute is a data point. Track which products, customer segments, and shipping methods generate the most disputes. Use this data to prevent future chargebacks.