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How should I handle a chargeback from a customer?

Handling a chargeback from a customer

Daniel McMahon-Young avatar
Written by Daniel McMahon-Young
Updated over a month ago

These recommendations are provided by our payment processor. While informative, they may not be comprehensive.

The evidence you submit plays a critical role. This document outlines how to submit strong, relevant evidence through Stripe and how to avoid common pitfalls.


Submitting Evidence

Match the Evidence to the Dispute Reason

Tailor your response to the specific reason for the dispute. Common evidence types include:

  • Web logs

  • Email communications

  • Shipment tracking numbers and delivery confirmations

  • Proof of prior refunds or replacement shipments

Example:
If the dispute reason is “Product Not Received”, include:

  • Shipping carrier and tracking number

  • Delivery confirmation with full address

  • Screenshots of tracking information

Avoid Including Unsupported Formats or External Links

Do not include:

  • Audio or video files

  • Requests for the issuer to call or email you

  • Links to downloadable files or external pages (e.g., tracking pages)

Issuers will not follow links or make contact, so all relevant information must be included directly in your Stripe evidence submission.

One-Time Submission

You may only submit dispute evidence once. Before submitting:

  • Ensure all evidence is included

  • Review carefully for clarity and completeness

  • Use Stripe’s auto-save feature to prepare in stages if needed


Writing an Effective Response

Be Clear, Concise, and Factual

Issuers review thousands of dispute responses. Avoid emotional language, unnecessary background about your company, or commentary on the fairness of the dispute.

Example Template:
“Jenny Rosen purchased [Product Name] from our company on [Date] using a Visa credit card. The customer agreed to our terms of service and authorized this transaction. We shipped the product on [Date] to the customer’s provided address, and it was delivered on [Date].”

Use Professional Tone and Neutral Language

Focus on facts. Investigate thoroughly:

  • Use Google Maps or Street View to confirm delivery locations

  • Search social media to confirm identity (e.g., Facebook, LinkedIn)

While communication records like emails or texts may support your case, remember:

  • They do not verify the customer’s identity

  • Redact unrelated content to keep the submission focused


Types of Supporting Evidence

Proof of Delivery or Service

For physical goods:

  • Provide shipment and delivery records, including the entire delivery address

  • Signature confirmation strengthens your defense

For digital goods:

  • Include IP addresses, system logs, or device information showing customer activity

If the shipping name differs from the cardholder's (e.g., a gift), include documentation explaining the reason for the name mismatch.

Terms of Service and Refund Policy

Include screenshots showing your:

  • Terms of Service

  • Refund or return policies

These must be shown as the customer would have seen them at checkout. Text copies alone are insufficient.

Refund Policy Placement

Per Visa requirements, include the refund policy before the customer's signature in your purchase agreement to confirm acknowledgement.


Formatting Your Evidence

Card issuers often rely on legacy systems (e.g., fax), so formatting is crucial for clarity. Ensure all attachments are submitted in acceptable file formats. Supported formats include PDF, JPG or JPEG, and PNG.

  • Use 12-point font or larger

  • Use U.S. Letter or A4, portrait orientation

  • Add bold text, callouts, or arrows to highlight key info

  • Avoid color highlighting

For Screenshots:

  • Crop to the relevant area

  • Circle important details (e.g., delivery confirmation)

  • Use text fields in the dispute form to explain the relevance of each screenshot

Illegible evidence will not be considered by issuers.


Accepting a Dispute

You may choose to accept a dispute when:

  • You agree with the cardholder’s claim

  • You do not plan to respond with evidence

Accepting a dispute is not an admission of wrongdoing and prevents further action. However, it does count toward your dispute rate, so prevention is still important.


Misunderstandings and Customer Withdrawals

If a dispute is due to a misunderstanding, the customer can tell their card issuer to cancel it. Even in this case, you should still submit evidence to:

  • Show that the transaction was valid

  • Indicate that you are not accepting the dispute

If you agree that the customer should keep the funds, accept the dispute instead of requesting a withdrawal.


Partially Refunded Transactions

Even if you’ve already issued a partial refund, a customer can still dispute the entire payment.

In your response, include:

  • The amount and date of the partial refund

  • A screenshot of the refund in your Stripe Dashboard (“credit issued” evidence)

Card issuers often cancel the original dispute and create a new one for the adjusted amount. Stripe continues to track the dispute as a single case.


Compelling Evidence for Visa Disputes

Visa requires at least one piece of compelling evidence to overturn disputes for fraud or a product not received.

Examples:

  • Proof that the customer received the goods or services

  • Logs or records of usage (for digital services)

  • Device location and IP address


Legal Disclaimer

These recommendations are not a substitute for legal advice. Always consult with a legal professional for complex or high-risk situations.

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