Different industries require different evidence types to reverse chargeback claims. In fact, the right evidence types are key to building the chargeback dispute document and to winning.
Each industry and reason code requires different evidence types and it sometimes takes a long time to discover the most effective evidence types. Fortunately, weโve done the hard work for you; this article breaks down the most useful evidence types by industry, so you can focus on collecting these data points to maximize winning back chargebacks.
Retail
The online retail industry suffers from a unique set of chargeback-related challenges โ neither cardholder or card are physically present during the transaction, and merchants may struggle to prove that goods were delivered intact, on time, or to the correct location. This results in claims of card-not-present fraud and fulfillment issues.
The most effective evidence types to reverse retail chargebacks include:
- Authentication data recorded at the point of sale, such as AVS, CVV, 3D Secure, and biometric authentication can each help to rule card-not-present fraud out of the equation.
- Shipment tracking data and proof of delivery are particularly vital for disputes surrounding fulfillment issues. These key data points can invalidate claims that products never arrived or arrived late.
- Product descriptions serve as compelling evidence when cardholders claim they didnโt get what they paid for. Product photographs can compound this evidence further. Itโs crucial to save this information, even if you discontinue the product!
- Histories of fraud can be accessed through PSPs and third-party providers. In ambiguous cases, these records can reveal patterns of abuse that prove a cardholder is habitually gaming the system.
Chargeback Management vendors such as Justt integrate with POS and ecommerce systems to access receipts, shipment data, and return confirmations automatically.
Digital Goods
While the intangible quality of digital goods permits huge transaction volumes at low cost, it also leads to a lack of tangible evidence with which to reverse chargebacks. Common disputes include ‘item not received’ or unauthorized charges. Furthermore, user experiences vary depending on access to personal technology, which can make it difficult to assign liability relating to fulfillment issues.
A few essential evidence types to collect for digital goods disputes include:
- Download logs are essential when fighting disputes based on unauthorized transaction claims. If you can connect the download to the cardholderโs IP address, the case may be as good as closed.
- Customer communications logs can quickly prove that digital goods were rendered appropriately, and that a cardholderโs dissatisfaction relates to another aspect of their purchase, such as buyerโs remorse.
- Detailed product descriptions are even more essential for digital goods than other forms of retail. You need to be able to comprehensively prove that a cardholder got what they paid for โ screenshots of product pages, digital signatures on terms of usage, and usage logs displaying access to tutorials, can each demonstrate that a cardholder initiated a transaction knowingly.
Chargeback management vendors such as Justt automate the collection of order, usage, and customer data to create compelling, dispute-specific responses. This scalability makes chargeback management automation ideal for high-volume digital goods.
SaaS
SaaSโ recurring charges are frequently exploited by cardholders who feel they arenโt getting value for money. Recurring charges often lead to disputes from customers who forgot to cancel or didnโt understand the billing terms. Friendly fraud is prevalent. Free trial abuse, forgotten subscriptions, and buyersโ remorse are just a few reasons why illegitimate chargeback volumes are soaring across the sector.
Fortunately, there are a number of evidence types that can help. These include:
- Usage logs can show a cardholder was actively utilizing their subscription, invalidating claims of forgotten purchases and unauthorized transactions. Make sure to collect usage timestamps, IP addresses, and detailed records of account activity. Account creation date, login and usage timestamps are important to track.
- Signed subscription terms are your contract with the cardholder โ even if they often go unread. These documents are also your most valuable weapon against chargebacks from cardholders claiming not to have understood your payment policies.
- Cancellation requests and customer communications can reveal when and why a cardholder chose to unsubscribe from a software-based service, rebutting claims of non-use and unauthorized transactions.
Chargeback management vendors such as Justt collect usage data, account info, and billing history to prove the customer knowingly subscribed and used the service. It also adapts to changes in network rules for subscriptions.
Gaming
The gaming industry faces soaring chargebacks due to buyerโs remorse over microtransactions, family fraud, and cardholders who simply want their money back after completing a game. It is common to see high rates of fraud and friendly fraud, often from minors making unauthorized purchases or users regretting in-app purchases. Easy digital fulfillment makes disputes harder to counter.
However, adequately prepared merchants should be able to reverse the vast majority of these illegitimate chargebacks using the following evidence types:
- Account registration data can connect transactions to a cardholderโs email address or phone number, proving that they knowingly initiated a purchase, and disproving claims of family fraud. Make sure to track account registration, purchase logs, in-game usage data, IP/device info, KYC data, email/phone verification.
- In-game usage data demonstrates how regularly a cardholder plays a game, and whether they benefited from microtransactions and other purchases. This can serve as vital evidence against claims of non-use, accidental purchase, and fulfillment issues.
- IP and device info are essential when fighting gaming chargebacks relating to claims of true fraud, serving as evidence that a game was played on a cardholderโs device.
Chargeback automation management providers such as Justt make it profitable to dispute low-value, high-volume chargebacks. It also brings domain expertise to combat family fraud and misuse.
Travel
Merchants in the travel sector frequently find themselves experiencing chargebacks relating to delayed flights, substandard services, and event cancellations. Cardholders may also attempt to claim a transaction was unauthorized upon realizing that they no longer need their flight. Chargebacks often come from travel cancellations, delays, and non-refundable ticket disputes. Fraudulent bookings using stolen cards are also common.
Some of the most compelling evidence types for reversing these chargebacks include:
Ticket number, refund status, cancellation policy, payment logs, reservation ID, folio/invoice, boarding pass scan.
- Boarding pass scans track a passengerโs journey through a terminal and onto their flight. This data should be carefully compiled and sorted for use against non-fulfilment claims. Additionally, payment logs, reservation ID and folio/invoice are all useful evidence.
- Cancellation policies are unfortunately often signed without having been read. This can lead to a host of confusion-based chargebacks, where cardholders believe they are entitled to their money back. Retaining digitally signed copies of these documents is essential for reversing these disputes.
- Authentication data often serves as highly compelling evidence for travel chargebacks based on claims of card-not-present fraud. These are very common, and frequently arise when travellers change their plans, despite having no valid refund excuse.
Chargeback management providers such as Justt connect travel records, cancellation data, and refund policies to validate whether a passenger flew or was properly refunded.
Event Ticketing
Ticket vendors are highly reliant on other industries, such as travel and hospitality. Unfortunately, when flights or accommodation fall through, tickets are often the first transaction to be disputed โ even though sellers are typically uninvolved. Event ticketing is also subject to chargebacks surrounding fulfilment issues โ if a concert goer is unhappy with the event, illegitimate chargebacks are often the result.
Some compelling evidence for these disputes includes:
- Refund policies should comprehensively explain what ticketers are prepared to take responsibility for, and what falls outside their jurisdiction. Ensure that these documents are displayed at the point of sale, and digitally signed by each cardholder. You should also preserve even rescheduling information.
- Delivery emails play multiple roles in ticketing, conveying pertinent information, proof of purchase, and often acting as the ticket itself. Retaining these communications allows you to prove that cardholders were fully informed about the event, and provided with everything they needed to access the venue.
- Scans at the venue show you exactly who attended the event, and who failed to show up. These prove invaluable when fighting fulfilment-related chargebacks, and those related to card-not-present fraud.
Chargeback management providers such as Justt gather ticket delivery records and scan confirmations to show usage and event status.
Cryptocurrency
Cryptocurrency is prone to rapid price fluctuations, and an ill-placed investment can leave remorseful cardholders scrambling to reclaim their funds โ even if that means initiating illegitimate chargebacks at your expense. Worse still, the sectorโs high value transactions mean that just a few of these disputes can prove financially devastating for sellers.
With most crypto chargebacks surrounding unauthorized transaction claims, the most compelling evidence at merchantsโ disposal include:
- Blockchain TxIDs are critical for verifying data surrounding cryptocurrency transactions, including the identity of the sender and receiver. Unauthorized transaction chargebacks are much easier to reverse if you can prove that the disputed amount landed in the cardholderโs wallet!
- Wallet addresses are another key part of this process โ blockchain TxIDs will reference a buyerโs wallet address, potentially proving the transactionโs legitimacy. As such, itโs critical to store and consolidate this information.ย
- Exchange rates are constantly changing, with the result that cardholders sometimes initiate chargebacks for amounts that no longer reflect the initial transaction value. Be sure to record the exchange rate at the point of sale, so that you arenโt overcharged for a refund or chargeback.
Chargeback management providers such as Justt pull blockchain TXIDs, wallet addresses, and KYC verification to prove delivery and authorization.
Financial Services
Like crypto, the high costs and risk involved in financial service transactions can leave cardholders chasing lost funds by any means necessary. Both unauthorized transaction and fulfillment-based chargebacks are extremely common, with cardholders frequently claiming that services were incompletely rendered or otherwise unsatisfactory.
Some of the most effective evidence types for these disputes include:
- Signed agreements for loans, advisory services, and accounting should state unambiguous and legally binding terms for any services rendered. These agreements can prove critical for reversing fulfillment-related chargebacks.
- Installment data can link financial services downloads to cardholdersโ IP addresses and devices, helping to refute claims of unauthorized transactions.
- Customer communications are some of the most important evidence for financial services chargebacks โ they can demonstrate the customer’s acknowledgment of the transaction, prove a business’s efforts to resolve issues, and support a merchant’s claim that a transaction was valid and authorized.
Chargeback automation vendors such as Justt integrate usage data, work logs, and service agreements to show that financial services were rendered.
Fully Automated Evidence Collection with Justt
Merchants are facing an increasingly complex payment ecosystem, rule variations between card schemes and payment service providers, and a more challenging fraud environment than ever. Collecting, collating, and presenting evidence for chargeback disputes can easily become time- and resource-intensive at higher transaction volumes – forcing payment teams to either divert resources from other mission critical initiatives, or โleave money on the tableโ by failing to fight illegitimate chargebacks.
Justt takes chargeback evidence off your plate. Justt will collect the data from your own systems, integrate with all major PSPs, and automate third party data enrichment (such as documents from fulfillment partners or known fraudulent IP databases). The platform will also normalize the data, and prioritize the most relevant evidence based on decades of in-house expertise and granular data from many thousands of disputes.
