What Happens When A Merchant Does Not Respond To A Dispute

Chargeback disputes are tedious and annoying. Not only do they compromise the transaction in question, but they also hurt your business credibility. Banks dislike high chargeback rates. Merchants who do not respond to disputes lose the chargeback dispute by default, thus refunding the total transaction amount and paying the required chargeback fees. 

Moreover, disputes often end up costing a lot. Considering that most investigations span around three months, expect to spend a significant amount of your time and money.

Merchants typically have 7 to 10 days to respond to a chargeback dispute, although it’s best to act as quickly as possible. It’s in your best interest to gather and submit the necessary documents promptly.

Actionable Tips To Help Merchants Respond to Disputes Quicker

Do you find yourself lost on how to tackle chargeback disputes? Don’t worry — we can help. Use our actionable tips below as a helpful starting point:

  • Understand your bank’s timeframe. We mentioned above that most banks give merchants 7 to 10 days to respond. However, some institutions may extend this period to a month.
  • Secure compelling evidence. Apart from the standard sales invoices and receipts, submit any screenshots of your conversation with the customer as well.
  • Practice your writing. Read, edit, and re-read your formal written rebuttal multiple times before sending it. Remember: good writing conveys messages.

Resolve disputes as early as you can. Merchants only have a 40% chance of winning against chargeback disputes, and delays only further hurt your chances. In the worst case, you might even default the case. To hasten these proceedings, ensure that all your recent sales invoices, receipts, and transaction order volumes are accessible.

Also, cooperate with your processor and merchant bank. These parties will typically defend you against the complainant and their issuing bank. Always answer their calls. We know that these investigations tend to get nerve-racking, but avoiding consultations only delays the process.

At Processing Card, we believe that prevention is better than cure. Check out our helpful guide on the best tools and systems for chargeback prevention!

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