Being hit with a chargeback is a frustrating, yet inevitable, part of doing business. Sometimes it makes more sense to accept the outcome and move on, focusing your attention on prevention going forward.

However, most of the time you’ll want to fight the dispute and work towards reversing the outcome. So what is chargeback reversal, and how does it work? 

This involves submitting compelling chargeback representment to the financial institution showing that the customer is in the wrong, not you. It can take a bit of time, but it’s worth it to maintain a low chargeback ratio and protect your company’s profits.

The best part? It can be completely automated by choosing us as your chargeback company. Disputifier not only prevents up to 99% of disputes in the first place, but actively fights them on your behalf whenever they slip through the cracks. 

You can boost your chargeback win rate as high as 70% with our solution! Plus, you only pay when you win. What do you have to lose? Learn more about our approach today.

What is a Chargeback Reversal?

So, what is a chargeback reversal? Let’s first take a step back and look at the chargeback process itself to paint the full picture for those who are new to dealing with disputes.

Overview of Chargebacks

A chargeback occurs when a customer disputes a transaction, leading the issuing bank to reverse the payment and return the funds to the customer. 

There are a number of reasons this can happen, but ultimately it all comes down to one common theme: the customer believes there is an issue with the transaction. 

Whether it’s fraud, unauthorized charges, or receiving goods or services that do not meet their expectations, the outcome is more or less the same for businesses. So, how do chargebacks affect a business?

While chargebacks are a consumer protection mechanism, they can have dramatic financial and operational consequences for businesses. This includes lost revenue, additional fees, and potential damage to the merchant’s relationship with their payment processor.

The good news? You don’t have to take it lying down. You can state your case in an effort to reverse the initial outcome. This is where an understanding of the chargeback reversal meaning comes in.

Chargeback Reversal Meaning

So, what is a chargeback reversal? This is simply the decision to overturn the initial ruling the bank made in favor of the customer - thereby returning the funds back to the business and crediting any fees incurred. 

This is the result of a merchant providing compelling evidence - known as representment - showing either the customer acted fraudulently or misused the chargeback process out of convenience or mistake. 

As you can imagine, the odds are not in your favor as a merchant attempting to reverse a chargeback, though. That being said, we’re here to help tip the scale for you and give you a fighting chance. We’ll talk about how to win a chargeback as a seller below. 

How to Reverse a Chargeback Verdict

Whether you’re wondering how to fight fraud chargebacks or chargeback for services not rendered, chargebacks for item not as described, or anything in between, timely response is of the utmost importance. So, let’s start by looking at the chargeback time limit.

Understanding Timelines

Most payment networks and issuing banks have strict deadlines for when a merchant must respond to a chargeback. Now, what happens if a merchant does not respond to a chargeback in time? They automatically lose, and will not be able to attempt to reverse the outcome.

These timelines can vary depending on the card network but generally range from 7 to 30 days from the date the chargeback is issued. That being said, you don’t want to waste any time when you get the alert you’ve been hit with a chargeback. Start gathering evidence immediately. 

Gathering Evidence

The strength of your case in a dispute reversal depends largely on how compelling your evidence is. You should gather all relevant documentation related to the transaction in question. This may include:

• Transaction Records: This could include the date, time, and amount of the sale.
• Proof of Delivery: Shipping records, tracking numbers, and delivery confirmations that show the product was delivered as promised.
• Customer Communications: Emails, chat logs, or any other communication with the customer that demonstrate their awareness and acceptance of the transaction.
• Return and Refund Policies: Documentation showing that the customer was made aware of your return and refund policies before the purchase was completed.
• Authorization Proof: Copies of the customer's signature or other forms of transaction authorization.

While you might not have all of this information at your disposal, the more you can provide, the better your odds will be of winning the chargeback.

It’s important to take note of the specific reason code provided for your initial chargeback and zero in on fighting that. For example, if the chargeback is for “item not as described” - there is no point in providing proof of delivery. 

Instead, you’d want to focus on showing information from your product page including accurate descriptions, photos, and then the product itself to show there is no disconnect. You can also provide communication with the customer, including attempts to resolve the issue amicably. 

Filing a Representment

Now it’s time to submit your case to the issuing bank or card network in question, which is known as representment. We have a great chargeback response template you can use to facilitate this process.

In general, though, you should be concise yet thorough, directly addressing the reason for the chargeback and providing clear evidence to refute the customer’s claim.

Include a well-crafted rebuttal letter that explains why the chargeback should be reversed. It should be professional, fact-based, and free of any emotional language. The goal is to make a compelling case that leaves little room for the bank to deny your request.

Working With Payment Processors

While the chargeback process can be complex, you don’t have to navigate it alone. Your payment processor can be an ally, serving as an intermediary between you and the issuing bank. This is why you need to maintain a good relationship with them.

They can provide guidance on what types of evidence are most effective and ensure that your representment is submitted correctly and on time. Your payment processor may even offer tools or services to help automate parts of the chargeback management process.

Next Steps

At this point, it’s just a waiting game. You can continue to submit any additional evidence that comes up before the deadline. Eventually, the bank will review the evidence again and make a ruling. 

Hopefully, they reverse the chargeback and return the funds to your account, settling the dispute for good. But if they’re not convinced, and uphold the original verdict, now what?

At this point, you can choose to take the loss, or you can escalate it further if you’re passionate about your case and want to maintain a low chargeback ratio to avoid placement in the Visa dispute monitoring program. This is known as the pre-arbitration chargeback process.

Here, both parties will have yet another chance to disclose additional information supporting their case. It gives you an opportunity to present your case from a new angle. 

If it proves unsuccessful, you can escalate once more to arbitration - which will be a final ruling, and can be quite expensive. You’ll have to carefully consider if it’s worth it or not.

How Long Does a Chargeback Reversal Take?

Now, how long does a chargeback reversal take? There’s no one-size-fits-all answer as it all depends on the unique circumstances of your case. We’ll cover these factors below and give you a rough chargeback reversal time frame you can expect.

Factors That Affect Timing

The time it takes to reverse a chargeback can vary based on:

• Case Complexity: If a large sum of money or multiple transactions are involved, it may take longer for the bank to review and decide on the case. Cases involving fraud or unauthorized transactions may require more extensive investigation, too.
• Issuing Bank's Procedures: Some banks may process reversals faster, while others may take longer due to internal reviews or additional verification steps.
• Merchant's Response Time: Quickly gathering and submitting evidence can speed things up. Delays in submitting documentation or incomplete evidence prolong the reversal process.
• Communication and Cooperation: Working with your payment processor and issuing bank can help expedite the process. On the other hand, miscommunication or lack of coordination can cause delays.

Typical Chargeback Reversal Time Frame

So, how long does a chargeback reversal take on average? Let’s zoom out and look at the process as a whole:

• Initial Review (1-2 weeks): The issuing bank typically takes 1-2 weeks to review the dispute and notify the merchant. The funds are usually placed on hold during this time.
• Merchant Response and Evidence Submission (2-4 weeks): Upon notification, the merchant is given a set period (often 7-30 days) to gather and submit evidence for representment. The quicker this is done, the faster the process moves forward. For example if you submit your evidence on the first day, you can get into the review process right away.
• Bank Review of Representment (2-6 weeks): The issuing bank reviews the evidence and decides whether to reverse the chargeback. It can take anywhere from 2-6 weeks depending on the bank's workload and the complexity of the case.
• Final Decision and Reversal (1-2 weeks): If the bank takes your side, the chargeback is reversed and the funds are returned to your account. This may take another 1-2 weeks to complete.

Just be prepared for some variability in the time line for reversing a chargeback. But, what if we told you that you didn’t have to worry about the process at all? We can handle it all for you from A to Z so you can remain focused on more relevant matters while we help you win the dispute.

Automate the Chargeback Management Process With Disputifier!

While the process of attempting to reverse a chargeback can be time-consuming and complicated, you don’t have to handle it yourself. Instead, leave it to the best chargeback companies like Disputifier.

We not only handle everything for you but also increase your win rate. So, how often do merchants win chargebacks with us? Up to 70% of the time! In comparison, the industry average is as low as 20%.

All our responses are customized to the unique case at hand, which includes assessing hundreds of data points. Your representment is submitted without you having to lift a finger.

Because we fight so many chargebacks on a monthly basis we have tons of data on what works best. This means we’re constantly A/B testing to increase win rates, boosting your success in overturning chargebacks by as much as 67%!

But we don’t just help you fight disputes - we also prevent them from occuring in the first place. We use Verifi and Ethoca chargeback alerts to help you initiate a refund before it turns into a chargeback. You also have AI-powered fraud scanning tools protecting your business around the clock. There is even a solution in place to mitigate order not received problems.

Together, these tools work in synergy to prevent up to 99% of fraud, 95% of chargebacks, and 80% of order unreceived disputes.

So, get started with Disputifier today to forget about chargebacks forever and focus on more important matters in your business. Meanwhile, we’ll be safeguarding your profits and reputation. Get a demo now!

Wrapping Up Our Reversal Chargeback Guide

As we conclude our guide on chargeback reversals, we want to remind you of the importance of swift action and efficient evidence gathering in submitting your representment. This will greatly increase your odds of success in overturning the initial verdict by issuing banks.

Our blog has additional resources on how to prevent chargebacks as a merchant, chargeback vs dispute, chargeback alert, merchant chargeback insurance, Visa rapid dispute resolution, chargeback vs refund, and more.

At this point, though, it's time to put the stress and frustration of chargebacks in the past for good with Disputifier. Let us do the heavy lifting and protect your revenue and reputation so you can focus on growing your business!