Chargebacks cost you money, time, and your reputation as a merchant. Understanding how chargebacks work, what triggers them, and how to dispute them gives you the best chance of protecting your revenue. This article covers how to minimize payment disruptions after a processor migration, how to prevent chargebacks, what documentation to gather when disputing a chargeback, how to submit a dispute, and a full reference of chargeback reason codes for Visa, Mastercard, American Express, and Discover.

How to Minimize Payment Disruption After a Processor Migration

When you switch payment processors, a small percentage of recurring credit card transactions may fail on their next scheduled run. This happens for two reasons: the card may have expired during the migration and the updated card information did not transfer to the new processor, or the customer's bank may flag the transaction because it is coming through an unfamiliar processing system. The majority of recurring transactions will process without issue, but proactively communicating with your customers reduces the risk of failed payments and chargebacks.

The recommended approach is a two-step process: create a zero dollar order form or checkout form that lets customers update their card information at no cost, then send an email broadcast to your customer list with a link to that form.

Step 1: Create a Zero Dollar Form to Capture Updated Card Information

Create a form with a zero dollar product so customers can submit their card details without being charged. When a customer completes the form, their card information is updated in your CRM and will be used for future recurring charges.

Follow the instructions for your account type:

• Ultimate accounts: Create an order form with a zero dollar product. Once saved, copy the order form link to use in your email broadcast.
• Pro and Max accounts: Create a checkout form with a zero dollar product. Once saved, copy the checkout form link to use in your email broadcast.

Step 2: Send an Email Broadcast to Your Customers

Send an email broadcast to your customer list with a link to the zero dollar form as the call to action. Replace all content in brackets before sending. Follow the instructions for your account type to create and send the broadcast:

• Ultimate accounts: Send an email broadcast
• Pro and Max accounts: Create an email broadcast

Use the following suggested email copy as a starting point. Adapt the copy to fit your business and update all bracketed fields before sending.

How to Minimize Chargebacks

A chargeback occurs when a cardholder contacts their issuing bank — such as Capital One, American Express, or Chase — and disputes a charge on their credit card. The cardholder believes they were wrongfully charged and requests that the bank reverse the transaction. Common reasons for chargebacks include goods or services not being delivered, products not matching their description, the merchant not following their stated refund policy, accidental charges, and fraudulent transactions.

When a chargeback is filed, the disputed amount is pulled from your bank account and returned to the cardholder's issuing bank. Your acquiring bank — the bank that processes payments on your behalf — charges a chargeback fee for each disputed transaction regardless of the outcome. Chargebacks can be filed within 180 days of the original purchase date.

While chargebacks cannot be entirely eliminated, the following practices reduce your exposure:

• Maintain a clear refund policy. A specific, easy-to-find refund policy helps customers understand what can be returned and what cannot. Customers who understand your policy are less likely to file a chargeback when they are unhappy.
• Make your contact information easy to find. Issuing banks require cardholders to attempt to resolve disputes with the merchant before filing a chargeback. A visible phone number and email address for customer support gives customers a direct path to resolution before a dispute escalates.
• Write accurate and detailed product descriptions. Chargebacks filed under "not as described" are among the most common. Detailed descriptions and clear product images reduce the likelihood that a customer receives something different from what they expected.
• Avoid manually keying credit card information. Manual entry errors can result in incorrect charges, which trigger chargebacks. Use your CRM's payment forms and checkout tools to capture card information directly from the customer.
• Use a recognizable merchant descriptor. If customers do not recognize your business name on their credit card statement, they are more likely to dispute the charge as fraudulent. Confirm that your merchant descriptor matches a name your customers will recognize.

Documentation to Gather Before Disputing a Chargeback

Successfully disputing a chargeback depends on providing clear, relevant evidence that supports your case. Not every document listed below will apply to every chargeback — review the chargeback reason code first to determine which documentation is most relevant. The reason code is included in the chargeback notification you receive.

1. Order confirmation and receipt — Proof that the customer authorized the transaction. This is the primary document for countering unauthorized purchase claims.
2. Proof of delivery — For physical goods, a delivery confirmation that establishes the customer received the items they ordered. Use this to counter non-receipt claims.
3. Communication history — Any correspondence with the customer, particularly messages where they acknowledged receipt or expressed satisfaction. Use this to counter claims of dissatisfaction or non-delivery.
4. Tracking information — Shipping tracking numbers and delivery details that confirm the order was fulfilled and delivered to the correct address.
5. Product descriptions and images — Documentation showing that the product or service delivered matched what was advertised. Use this to counter "not as described" claims.
6. Terms of service and refund policy — Documents confirming the customer was presented with and agreed to your policies before completing the purchase.
7. IP address and geolocation data — Where available, evidence of the customer's IP address and location at the time of the transaction. Use this to verify the customer's identity for fraud-related disputes.
8. Refund and exchange history — Documentation of any refunds or exchanges you attempted to provide before the chargeback was filed. Use this to demonstrate good-faith efforts to resolve the issue.

How to Dispute a Chargeback

You have the right to dispute any chargeback you believe is unjustified. Submitting a dispute does not guarantee a reversal, but providing complete and well-organized documentation significantly increases your chances of a successful outcome. Disputes must be submitted before the chargeback deadline stated in your chargeback notification — missing the deadline forfeits your right to dispute.

1. Gather your documentation. Collect all relevant documents related to the disputed transaction. Refer to the Documentation to Gather Before Disputing a Chargeback section above for a full list of what to include.
2. Review the chargeback reason code. Each chargeback includes a reason code that identifies why the customer filed the dispute. Common reason codes include Item Not Received, Unauthorized Transaction, and Item Not as Described. The reason code tells you which documentation will be most relevant to your dispute. Refer to the Chargeback Reason Codes by Card Network section below to look up the specific code on your chargeback notification.
3. Review the chargeback notification details. Examine the chargeback notification for the transaction date, disputed amount, and the customer's stated reason. Cross-reference the notification against your records to confirm the details are accurate before submitting your dispute.
4. Submit your dispute and documentation. Provide all collected documentation to the payments team before the chargeback deadline stated in your notification. Late submissions will not be accepted.
5. Monitor for follow-up requests. After submitting your dispute, watch for any requests for additional information or clarification. Respond promptly to all requests — delays in responding can result in the dispute being decided against you.

Chargeback Reason Codes by Card Network

Use the tables below to look up the reason code on your chargeback notification. Each reason code identifies the specific category of dispute filed by the cardholder. Knowing the reason code helps you select the most relevant documentation for your dispute.

Visa Chargeback Reason Codes

Mastercard Chargeback Reason Codes

American Express Chargeback Reason Codes

Discover Chargeback Reason Codes