Understanding The Chargeback Dispute Process

Chargebacks can result in lost revenue, extra fees, and even penalties if not managed correctly. It’s important to handle them properly to protect your business. There are two types of chargebacks to be aware of: 

1. First Chargeback: This is when a customer disputes a charge for the first time. 

2. Pre-Arbitration: This occurs if you’ve already won the initial chargeback but your customer disputes it again. Be aware of the card brand fees in these cases can exceed $500 per ruling. 

To help you keep track and manage each type effectively, please review the steps outlined below. 

How to Navigate Business Track for Chargebacks 

1. Login or Create an Account – Access your Business Track account. 

2. Access Dispute Management – Click the “Apps” button in the upper right corner, then select “Dispute Management” from the dropdown. 

3. View Chargebacks – This page displays chargebacks categorized as: 

   • Action Required – Open disputes needing your response. 

   • In Progress – Chargebacks currently under review. 

   • Closed – Completed disputes. 

4. Review Chargeback Details – Click on a chargeback, then select “View Details” for more information. 

5. Access Full Chargeback Description – Click “Merchant Output Package” under Supporting Documentation to review the chargeback details and its current status. 

   • This document is crucial as it may indicate if fines apply for responding. 

6. Pre-Arbitration & Fees – If a chargeback enters arbitration/pre-arbitration, be aware that if the ruling favors the cardholder/bank, fees exceeding $500 per dipsute may be imposed. Consider carefully before challenging or accepting pre-arbitration cases. 

7. Challenging a Chargeback – To dispute a chargeback: 

   • Click “Challenge” at the bottom of the page. 

   • Select “Submit Documentation” and upload supporting evidence (e.g., signed receipts, sales slips, invoices) to strengthen your case.