Should I Fight This Chargeback?

  • Max Jones
  • May 8, 2019
  • 3 minutes

You just received a chargeback. Now what? Should you just accept it as a loss? Or should you fight back and try to recover your revenue?

Here’s how to tell if fighting a chargeback is a smart move—or a complete waste of time and effort.

What to make this a quick and easy decision?
Use our interactive quiz!

Can you win? Will there be ROI? Find out now!

STEP 1
Check the Chargeback Amount

Before you do anything else, check to see if there is ROI associated with fighting the chargeback.

Midigator® conducted a case study of labor costs. We found that it takes most in-house teams at least 40 minutes to create and submit a chargeback response. If you pay your employees $20 an hour, it costs at least $13.33 to fight a chargeback.

If your chargeback amount is less than that, fighting could have a negative ROI (return on investment). You’ll spend more than you’ll recover.

Is the chargeback amount more than your in-house labor costs?

Yes! Continue to step #2.

No. Stop right here. It’s best to just accept the chargeback.

NOTE: If you have a lot of low-dollar chargebacks or your in-house labor costs are higher than the average, your business is the perfect candidate for automation. The technology-driven pricing of an automated tool is usually a lot less than the expenses associated with manual labor. There will be more opportunities to fight, yet still see ROI, if you use technology to create and submit your dispute responses. If you’d like to learn more about this, let us know.

STEP 2
Check the Chargeback Expiration Date

Each chargeback has an expiration date. This cutoff date is the last day you can submit a response.

If you submit a response after the expiration date, it will not be accepted. There is no chance of winning. If you fight the chargeback anyway, you’ll waste time, money, and effort on a lost cause.

Is there still time to fight?

Yes! Continue to step #3.

No. Stop right here. It’s best to just accept the chargeback.

NOTE: If missing the submission deadline is a common concern for your business, you’ll need faster processes. Contact our team to learn how to speed things up.

STEP 3
Check Your Compelling Evidence

To fight a chargeback, you need compelling evidence. Compelling evidence is documentation that proves the original transaction was valid or disproves claims made in the dispute.

If you have compelling evidence, you can and should fight. If you don’t, you have a low probability of winning.

The compelling evidence you need depends on the chargeback’s reason code. Check what’s required, and then see if you have those documents.

Do you have the right types of compelling evidence?

Yes! Fight!

No. Stop right here. It’s best to just accept the chargeback.

NOTE: If you don’t know how to fight a chargeback or don’t want to go through all this trouble every time you receive a payment dispute, let Midigator fight for you. We’re ready to get started whenever you are.

Still Not Sure?

If you’re unsure if you should or shouldn’t fight a chargeback, use our interactive tool. It will tell you exactly what you need to fight—and win!

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