How to Read a Chargeback Notice

A chargeback notice tells you that a sale is being taken back. It also tells you why. The why is the reason code. Find that first.

What a chargeback is

A chargeback is a statement credit the cardholder receives from their card issuer after a dispute. A refund comes from the merchant, while a chargeback comes from the card issuer. So the money left your account without you sending it.

That does not mean the case is over. If a merchant disagrees with a cardholder's dispute, the merchant may appeal the chargeback.

Find the code

Look for a short code near the amount. Its shape tells you the card network.

• A number like 10.4 or 13.1 is a Visa code.
• A four digit number like 4837 or 4853 is a Mastercard code.
• A letter and two digits, like C08 or F29, is an American Express code.

Then open the page for that exact code.

Know which group it is in

Each network sorts its codes into groups. Visa sorts disputes into four categories: 10 Fraud, 11 Authorization, 12 Processing Errors and 13 Consumer Disputes.

Mastercard chargebacks fall into four categories: Authorization, Cardholder disputes, Fraud, and Point-of-Interaction Error.

The group hints at the kind of proof that helps.

Decide fast

A merchant can accept a Visa dispute, or reject it by sending supporting documents to its card processor.

Each step of a Visa dispute has a set time limit, so a late answer can lose the case.

Send proof that fits the code

Proof only helps if it answers the claim in the code. A delivery record does nothing for a fraud claim. A signed order form does nothing for a damaged item.

A good reply explains the documents, addresses the specific dispute reason and describes the steps taken to resolve it.

Your reply is not always the end. See what happens after you answer a chargeback for the rounds that can follow.