Customer Ops
Chargeback Dispute Handling SOP Template
A chargeback notification is time-sensitive in a way that most business tasks aren't. Payment processors typically give merchants 7 calendar days to submit a response — and if you miss the deadline, you automatically lose the dispute regardless of how strong your evidence is. The difference between winning and losing a chargeback is usually not the evidence quality. It's whether the response was submitted on time with the right evidence package in the right format.
Time-sensitive: Most processors give merchants 7 calendar days to respond to a chargeback. Start this process the day the notification arrives — not when it's convenient.
This SOP covers the complete chargeback response process from notification to outcome tracking. It applies to Stripe, Shopify Payments, PayPal, Square, and most other major processors with minor platform-specific variations.
Time to complete
~30 minutes
Owner
Customer Success / Finance
Deadline
7-day window
What You'll Need
- Access to your payment processor dashboard (Stripe, Shopify, PayPal, etc.)
- Original order details and payment confirmation
- Proof of delivery or fulfillment (tracking number, shipping label, delivery confirmation)
- Customer communication history (emails, support tickets, chat logs)
- Your refund and return policy (the exact version active at time of purchase)
The SOP
Open the chargeback notification and note the deadline
Log into your payment processor and open the chargeback dispute. Note the response deadline (typically 7 calendar days from the dispute date, not from when you received the email). Log it in your dispute tracker with a high-priority flag. Set a calendar reminder 48 hours before the deadline as a failsafe.
Pull the original transaction record
In your payment processor, locate the original transaction. Save or screenshot: transaction ID, payment date, amount, last four digits of the card, cardholder name, and billing address. Cross-reference with your order management system to confirm the order details match. This is your anchor document for the rebuttal.
Retrieve proof of delivery or fulfillment
Collect every piece of delivery evidence available: shipping tracking number and delivery confirmation, signed delivery receipt (if applicable), download logs for digital products, or service completion documentation for services. The stronger the delivery proof, the higher the chance of winning. For digital goods, IP address logs and download timestamps are especially powerful.
Check customer communication history
Search your email, helpdesk (Zendesk, Freshdesk, etc.), and any chat tools for all communications with this customer. Print or export: order confirmation emails, any support conversations, refund request history, and any correspondence where the customer acknowledged receipt. If the customer contacted you about this order and you resolved it, that communication is key evidence.
Draft the rebuttal letter
Write a concise rebuttal letter (1–2 pages) covering: (a) a summary of what was purchased and when, (b) proof that the goods/services were delivered, (c) evidence that the cardholder is the same person who placed the order, (d) any relevant prior communications. Match the dispute reason code — a "not received" chargeback needs delivery proof; a "not as described" needs evidence the product matched what was advertised.
Compile and upload the evidence package
Organize all evidence into a single PDF packet in this order: rebuttal letter, transaction record, delivery proof, customer communication, refund policy. Label each section clearly. Upload the packet through your processor's dispute response portal. Most processors have a file size limit (typically 5–10MB) — compress if needed.
Submit the response and confirm receipt
Submit the dispute response through the processor portal. Confirm you receive a submission confirmation (most processors show a confirmation screen and send a confirmation email). Screenshot or save the confirmation with the submission timestamp. This is your proof of on-time submission in case there's a processing error.
Log the outcome in your dispute tracker
Update your dispute tracker with: submission date, evidence submitted, and expected decision timeline (typically 30–75 days). When the decision arrives, log the outcome (won/lost), dispute reason code, and amount recovered or lost. Tracking outcomes over time reveals patterns — if you're losing a specific dispute reason code repeatedly, that's a process or policy problem to address.
Pro Tips
- Respond to every dispute, even ones you'll lose. A non-response automatically counts as a loss and increases your chargeback rate, which affects your processor fees and account standing.
- Match your evidence to the dispute reason code. Every chargeback has a reason code (e.g., "Item Not Received", "Unauthorized", "Not as Described"). Your rebuttal should directly address the stated reason — a generic response is less convincing to the bank than a targeted one.
- Keep refund policies on file in screenshot form. Banks may need to see the exact policy displayed at the time of purchase — not your current policy. Archive policy screenshots periodically so you have historical versions.
Record this SOP with Claudia
Process a real dispute in your payment processor while Claudia records. When the next chargeback arrives — and it will — any team member can follow the same process without escalating to you.
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