Chargeback Rebuttal Letters: Templates & Tips to Win

If you want to fight an invalid chargeback and recover lost revenue, you’ll need a chargeback rebuttal letter. And our complete guide can help you write a letter that wins.

A chargeback rebuttal letter is essentially a cover letter — which is defined as a letter that is sent with, and explains the contents of, another document.

For example, a cover letter is often sent with a resume or job application. It outlines why the applicant would be a good fit for the position and highlights relevant work experience listed in the accompanying resume.

A chargeback rebuttal letter serves a similar purpose as part of a chargeback response package. It explains why you are challenging the chargeback and draws attention to important details found in the enclosed documents.

You need a well-written chargeback rebuttal letter with a compelling argument if you want to overturn a chargeback.

The card brands (Mastercard, Visa, etc.) allow you to fight invalid chargebacks if you have documents to support your case. But documents in and of themselves aren’t compelling. And very few bank employees will take the time to sort through a pile of papers to find the one or two sentences with relevant information on each page.

A rebuttal letter is your argument. It is a short, concise summation of your evidence that is easy to understand and take action on.

As you write your letter, remember its purpose — to prove the original transaction was legitimate and the chargeback was not warranted. What information helps the reader reach that conclusion?

Both your acquiring bank and the cardholders bank (the issuer) need to know which chargeback you are challenging. Provide information that can match the response to the original dispute. Locate the following data points in your chargeback notice and include them in your response:

• The acquirer reference number (ARN)
• The chargeback case number (may be called the dispute ID)

You should also include your business’s legal name and the merchant identification number (MID) used to process the transaction.

Help the banks understand what was disputed. Share the following:

• The chargeback reason code
• The customer’s name
• The transaction amount (and dispute amount, if it is different)
• A description of what was purchased

You should also share a bit about your business to help establish context for the transaction.

• A concise description of the goods or services you sell
• Details about how you process transactions (subscription or single sales, in-person or online, etc.)

Explain the documents you are including in the chargeback response package and mention the important parts of each one. For example, your terms and conditions clearly state that all sales are final or tracking shows the package was delivered on time.

Clearly state your purpose — to reverse the chargeback. This may seem obvious, but it is helpful to explain what you want to happen.

Here are some writing tips to help increase your odds of winning.

• Structure your content in traditional letter format. Start with a generic greeting — “Dear Sir or Madam,” or “To whom it may concern” are good options. Then write the body of the letter. Close with something like “Sincerely,” or “Thank you for your time”.
• You can create a template to use over and over again. Not only would a template simplify the writing process and make it quicker, it also reduces the risk of omitting important information. Just make sure you customize each letter to fit the case at hand. For example, delivery confirmation would be compelling if the cardholder claims merchandise wasn’t delivered. But it wouldn’t be compelling if the customer claims the merchandise was counterfeit.
• Organize your content so it is easy to skim and digest. Use bullet lists and bold text to highlight the most valuable information.
• Be professional. Several people at various banks will be reading your rebuttal letter. Don’t be emotional or combative.
• Be clear. If your argument isn’t easy to understand, the bank won’t find the case in your favor. Correct spelling errors, typos, run-on sentences, grammar mistakes and anything else that could confuse your message.
• Be concise. Respect the reader’s time. Don’t include unnecessary information or ramble aimlessly.

Each acquirer has its own unique workflows and preferences for chargeback response packages. You’ll want to ask how to submit yours — these days, uploading to an online portal is probably the most common method.

While you are inquiring about the submission technique, ask about formatting preferences. Does the processor want a Word document? A PDF? Are images allowed? How should documents be ordered?

You also need to know when to submit your rebuttal and response package. Each acquirer sets its own response timeline — which can vary from three days to two weeks. Check the chargeback notice — it probably has a due date or expiration date.

Make sure you abide by this timeline. In fact, you should aim to submit your response package before it is due. This gives the acquirer time to process the response and add it to the review queue.

If you don’t respond by the due date, your case will automatically be denied. No extensions or late submissions are allowed. If you submit it anyway — after the expiration date — you’ll simply waste time and money on a lost cause.

Now, let’s take a look at how all these tips and suggestions work together to create a winning rebuttal letter.