Responding to Chargebacks

Chargebacks, also known as disputes, can be a frustrating and challenging experience.  A chargeback occurs when a customer files a dispute over a charge with their credit card company or bank.  If you use Paytronix Payments, you will receive a notification of the chargeback from our system after the dispute is filed by the customer.

You have several options to respond to a chargeback:

Contact the Customer

If the transaction appears to be legitimate, you can contact the customer via phone and email to understand the reason why they filed the chargeback.  They may have forgotten about the transaction, so it might be a simple misunderstanding.  If this is the case, the customer can withdraw the dispute by contacting their bank or credit card company.

If the customer agrees to withdraw the dispute, be sure to ask them to contact their bank.  If you speak via phone, also send a follow-up email to recap the conversation and ask them to agree to withdraw the dispute.  These emails can be used as evidence.

If the customer does not withdraw the dispute, you can submit evidence to the bank to dispute the chargeback.

Respond to the Chargeback

Responding to chargebacks is known as "representment."  This allows you, the merchant, to provide documentation and evidence to the bank to verify that the transaction is legitimate, and that the cardholder in question did receive their order.

Any documentation of the order, such as a signed receipt, or any customer service-related emails, these can help your chances of winning.  If you use Paytronix Payments, you may submit your evidence directly from the O&D portal by navigating to Settings > Order Payment > Disputes.

Select the dispute by clicking on the date and click "Update Dispute" at the bottom of the page. Then, you will be redirected to a page where you may submit your evidence. 

In general, when sending this information to the cardholder's bank, be sure to include the Dispute Number (also called a Case Number) and the Reference Number (also called ARN) on all documents and pages.

Accept the Chargeback

If the chargeback is legitimate, you may choose to accept it.  For example, if the order was not properly delivered and the customer never received their food, your chances of winning are quite low.