How to Write a Convincing Chargeback Rebuttal Letter

December 6, 2022
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by Or Karas

The chargeback process exists as a form of consumer protection for customers shopping online. Unfortunately, this opens up an opportunity for unfriendly actors wishing to take advantage and benefit from the illegitimate reversal of transactions. As a result, chargeback cases continue to rise across the eCommerce industry. However, in response to this, the chargeback process does allow a merchant to submit a chargeback rebuttal in defense. This usually takes the form of a merchant rebuttal letter. 

However, to achieve success in a chargeback rebuttal, it’s important that it is carried out properly. This article will provide some tips and strategies in a step-by-step guide to help you draft a chargeback rebuttal letter. 

Step 1: Understand the chargeback reason code

Chargeback reason codes are set by the card networks and used by card issuers to categorize chargebacks. Usually, the reason codes will fall under the following categories:

  • Authorization
  • Consumer Disputes
  • Fraud
  • Processing Error

Once you are aware of why the chargeback has been issued, you can move on to the next step.

Step 2: Gather necessary evidence that can support your case

Here you can use various types of evidence, such as receipts, shipping records, and customer communications. This will allow you to corroborate your story. So, for example, if a customer has argued that they never received an item, you may have shipping records that indicate that not only was the item sent, but the customer had signed for it. It is important you source the most relevant evidence to provide your letter with success. 


Step 3: Craft a compelling introduction to your letter

Next, you want to begin writing the chargeback rebuttal letter. It is important that you keep this letter brief and to the point. Use the introduction to present your evidence concisely and clearly while addressing the reason code stipulated. Remember that the introduction will be the first thing that the analyst will read, and as always, first impressions count.


Step 4: Ensure evidence is presented clearly and concisely

You want to ensure that the person who receives your chargeback rebuttal letter has all the necessary evidence to make a decision. Therefore, it’s important that you present it logically. 

One way you can do this is by using the PEEL (Point, Evidence, Explain and Link) method within the body of the letter. Make a point, provide evidence, explain why and then link to the next point. Using a structured approach like this will ensure that it is easy to comprehend and will avoid a loss of focus. 


Step 5: Ensure the conclusion is succinct 

Finally, finish off the merchant rebuttal letter with a conclusion that perfectly summarizes all the points that should make the payment issuer rule in your favor. Link back to relevant evidence sources that can demonstrate your point. This may be the final impression that the analyst reading your letter will have, so ensure you end the letter as well as you started. 

Important Tip #1: Ensure you are professional and respectful throughout the letter

To achieve the best success with your chargeback letter, ensure that you remain respectful and professional throughout. It’s a good idea to avoid using language that could cause offense. Avoid casting aspersions or doubts on the transaction or the customer; you can do this by remaining objective and sticking to the facts.


Important Tip #2: Address the letter personally

Remember, the letter will be read by a real human, so being professional and respectful can go a long way. Moreover, you can use this to appeal to the psychological complexity of a human. Use persuasive language and images to further demonstrate your case. If you put effort into the letter, it will show and will likely have a net positive outcome on the chargeback rebuttal. 


Bottom Line

Writing a successful chargeback rebuttal letter requires being organized, objective, and professional. When you’re in the process of losing out on revenue, this can be hard to do. This is where chargeback management tools like Justt can help. Using proprietary technology, you’ll be able to gather evidence and submit chargeback rebuttal letters without having to do any work. It turns manual chargeback aggravation into smart, automated convenience.

To learn more about how Justt can help with chargebacks, read more on the Justt blog.  


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