The notice says a customer filed a chargeback, the money has already left your balance, and there is a due date in the message that you did not pick. You may be sure the order arrived, or you may not know yet, and either way the clock started before you opened the email. The fee stings, and so does the sense that the outcome sits with someone else. It does, in one way: the customer's card issuer and the card network make the final call, not you and not your payment processor. What you control is the next few days. You can find the reason the customer gave, pull the records that answer that exact reason, and respond before the deadline, or accept the claim when it is fair. The first step takes about two minutes, and you can take it right now.
Key Takeaways
Open the dispute, write down the reason code, amount and due date shown there, and plan around that date rather than any general window a processor publishes.
Fraud, not received, not as described and cancelled subscription claims each call for different proof, and a short labelled packet does more than a pile of documents.
Once a card chargeback has started, use the processor's accept or refund controls inside the case; Stripe says a later refund does not avoid its dispute fee.
What should you do first when a customer filed a chargeback?
Work through these in order. Each one takes minutes, and the first two protect your response window.
- Open the case in your processor: Find the dispute in Stripe, Square, Shopify Payments or PayPal and write down five things: the processor, the dispute reason, the amount, the transaction ID and the exact due date.
- Read the reason code: The reason decides what proof counts. A fraud claim and an item-not-received claim are answered with different records.
- Gather the evidence that answers that reason: Order record, delivery or service proof, customer messages and the policy the customer saw at checkout, chosen for this claim.
- Decide whether to challenge or accept: Challenge when you can prove the charge was valid. Accept when the customer is right or you cannot back up your side.
- Respond through the processor before the deadline: Submit evidence, or accept, inside the case itself. Nothing sent anywhere else counts.
It helps to know who is on the other side. The cardholder asked their bank to reverse the charge, the bank opened the case, and your processor pulled or held the money and gave you a deadline. Visa's Dispute Management Guidelines for merchants (June 2024) describe a dispute as a reversal of value from the issuer to the acquirer, and usually to the merchant, and say a merchant contacted by its acquirer should respond swiftly. Card rules for consumers sit in the federal Regulation Z, which sets out billing error and unauthorized use protections for cardholders. That is why the bank, not the store, decides the case.
How long do you have to respond, and what does a dispute cost?
Each processor handles fees and windows differently, and each says the date shown in your account is the one to follow. The table sets out what each one publishes. Treat the numbers as a starting point, then check your own case.
| Processor | Fee | Response window | Where your exact deadline appears |
|---|---|---|---|
| Stripe (US pricing) | $15 when a dispute is received, plus $15 if you counter it; the counter fee comes back if you win | Set per case | Stripe Dashboard, in the dispute |
| Square | Square says it covers chargeback dispute management fees | Seven days to respond to the information request | Square Dashboard, in the dispute |
| Shopify Payments | The disputed amount and a fee are withdrawn; the fee varies by country | Most windows run 7 to 21 days | Shopify admin, in the chargeback |
| PayPal | Check your case notice | Sellers generally have 10 days, but the case notice controls | Resolution Center |
Stripe's figures come from its US pricing page and its dispute fees FAQ, which also notes that network fees can apply in rare cases. Square lays out its seven-day window in its payment disputes walkthrough. Shopify explains what is withdrawn and when in its chargeback process guide, and PayPal covers its timing on its disputes, claims and chargebacks page.
Two terms can change what you are dealing with. Shopify separates an inquiry from a chargeback, because an inquiry does not take the money at first. PayPal separates a dispute or claim opened in its own Resolution Center from a chargeback the buyer files with their card issuer. Use the label your processor shows, because it decides which steps are open to you.
Whatever you decide, do not refund the original charge on its own to make the chargeback go away. The issuer has already started a separate reversal, so a second refund can leave you paying out twice. Use the accept or refund option inside the case, or submit proof of an earlier refund if you already issued one.
What chargeback evidence counts for each dispute reason?
The single biggest thing you control is fit: evidence that answers the reason the customer gave. Processors ask you to match the proof to the stated reason rather than upload everything you have. The four reasons below cover the claims Square names as common, fraud, not received and not as described, plus the cancelled subscription. Find yours, pull those records, and leave out the rest.
Fraud or an unrecognized charge
The claim here is that the cardholder did not make the purchase. Stripe's guidance on dispute evidence points to proof that ties the cardholder to the order: IP address, device and location that match past use, a low risk score, AVS and CVV results, 3D Secure authentication, and any sign that the cardholder received or used what they bought. Visa's guidelines give two examples for online fraud claims: proof the item was delivered to a physical address that passed AVS, or digital delivery details with the date and time plus device, IP or location data. A delivery scan alone may not answer a fraud claim, because it shows where the box went, not who ordered it.
Item not received
This is where delivery proof carries the case. Send carrier tracking that shows the delivery date, a shipping address that matches the order, a signature or delivery photo when you have one, and the shipment notices you sent the customer. A tracking number helps only when it connects clearly to this order. For digital goods and services, PayPal asks for access, download or service completion records instead of shipping proof.
Not as described
Show what the customer was promised and what they got. That means the product listing as it read on the day of purchase, the order and fulfillment records, any quality checks done before shipping, your support conversations with the customer, and the return process you offered. An old listing edited since the sale is weaker than a saved copy from the purchase date.
Cancelled subscription
For a subscription, the question is whether the charge came after a valid cancellation. Pull the renewal, cancellation and refund terms the customer accepted at signup, your cancellation logs, and any use of the service or messages after the date the customer says they cancelled. If the records show the customer followed your cancellation steps and was still charged, Shopify's advice in its chargeback prevention guide is to consider a refund rather than fight.
How do you gather chargeback evidence in twenty minutes?
Set a timer. The goal is one folder with the four core records for this order: the order, the proof of delivery or service, the messages and the policy. This sequence works for any processor.
A twenty-minute evidence run
- 1
Minutes 0 to 3
Open the case and note the processor, dispute reason, amount, transaction ID and exact due date.
- 2
Minutes 3 to 7
Export the order confirmation, the itemized receipt, and the authorization and checkout record.
- 3
Minutes 7 to 11
Pull carrier tracking, the delivery scan, a signature or photo, a service completion record, or digital login and download activity.
- 4
Minutes 11 to 15
Save the customer's emails, chats and support tickets, including any message that confirms they received or used the order.
- 5
Minutes 15 to 18
Capture the product page as sold and the return, refund, cancellation or billing terms, plus proof they were shown at checkout.
- 6
Minutes 18 to 20
Write a short dated timeline and label each file by what it proves.
How you present it matters more than how much you send. Shopify's chargeback guidance notes that bank reviewers may spend only minutes on a case, so put your strongest proof first. Every file should be easy to read and clearly tied to this transaction. No processor publishes a packet length that wins, so keep the written summary short and let the records do the work.
Some things carry less weight than they feel like they should. A long story about the customer's motives, the phrase "friendly fraud," or a general note about your reputation does not show that a package arrived or a service was done. A sitewide policy page also counts for less than proof that this customer saw that version at checkout.
When is accepting the dispute the better call?
Accepting is the right move when the claim is correct. That covers a charge made after a valid cancellation, an order you did not deliver as promised, a refund or cancellation your team mishandled, and a sale where you have no delivery or service proof. It also makes sense when building a credible response would cost more than the disputed amount plus any fee you could recover.
Square lets you answer "No" in its seven-day response form to return the funds to the customer, and its document request guide explains what it asks for when you do respond. Whichever processor you use, accept through its controls inside the case rather than through a separate refund.
Base the choice on evidence and fairness to the customer. Do not give in only because a customer is angry, and do not challenge a claim you know is valid just to delay the credit. Keep one limit in mind as well: accepting does not guarantee your account stays clear of a processor's dispute monitoring. And because the issuer makes the final decision, no processor or card network promises a win, so paying outside help to fight a small, well-founded claim can cost more than accepting it.
Should you contact the customer after a chargeback?
You can, carefully. A respectful message that offers factual help, or a fair fix such as a replacement or refund through the proper channel, may suit an ordinary problem. The customer may simply not recognize the charge on their statement. What you should not do is ask the customer to cancel, withdraw or change their bank dispute, or contact their bank yourself. Your evidence goes to the processor, and only through the case.
Shopify notes that customers are expected to contact the merchant first, and that a record showing they did not can support your response. That record helps your case, but it does not take away the customer's right to dispute the charge. Keep any contact short, polite and saved in your case folder.
How do you prevent chargebacks as a small business?
Prevention will not stop every claim, but each step below removes a specific cause. Processors including Shopify, Stripe and Square recommend these steps, and several take less than an afternoon to set up.
- Make your billing descriptor recognizable: Use your business or domain name so the charge makes sense on a statement, and send a receipt. Square notes in its statement description docs that a descriptor can be shortened, so keep it short.
- Show your policies before payment: Put return, refund, cancellation, delivery and recurring billing terms where the buyer sees them at checkout, repeat them in the confirmation email, and save dated screenshots of each version.
- Confirm delivery: Use tracked shipping, send tracking updates, and require a signature above an order value you choose.
- Keep service and access records: Log completed work, logins and downloads, and save product pages and support history.
- Turn on fraud tools: Shopify Payments offers fraud analysis, AVS and CVV filters, Fraud Control and 3D Secure, as its fraud prevention guide explains. Stripe supports 3D Secure and dispute prevention products. Review suspicious orders before you ship.
- Give disputes an owner: Name one person, a shared case folder and a checklist, so deadlines do not slip.
| Fix | What it involves | Rough effort |
|---|---|---|
| Recognizable descriptor | Change the processor setting and test a receipt | Under an hour |
| Clear checkout policies | Write accurate terms, place them at checkout and in confirmations, keep versioned screenshots | A few hours, plus legal review if needed |
| Delivery and service proof | Tracked shipping, signature thresholds, standard completion or access logs | One day to several weeks, depending on your systems |
| Customer support channel | A monitored help inbox or chat with a named owner | Hours to set up, then ongoing |
| Fraud controls | AVS, CVV and 3D Secure where offered, plus a manual review rule for risky orders | Hours to configure, then monitoring |
| Evidence workflow | An owner, a shared case folder and a template | A few hours |
These controls lower particular risks. They do not guarantee a win or stop every fraud claim, and a policy page by itself does not prove the customer agreed to it. The payoff is practical: the next time a notice arrives, you know the deadline right away and can pull the right records without digging through inboxes.
Are you ready to answer your chargeback?
Pick an answer to begin.
1. Which deadline should you plan around?
2. A customer says a package never arrived. What evidence fits best?
3. You refund the original charge after the chargeback opens. What happens?
Frequently Asked Questions About customer filed a chargeback
How long do I have to respond to a chargeback?
Use the due date in your case. Shopify says most windows run 7 to 21 days, Square gives seven days for its information request, and PayPal says sellers generally have 10 days, but the date shown in your account always controls.
How do I fight a chargeback?
Find the reason code, gather the evidence that answers it, and submit a short, labelled packet through your processor before the deadline. Put the strongest proof first, such as delivery records, access logs or the policy the customer saw at checkout.
Will I get the Stripe dispute fee back if I win?
Partly. Under Stripe's US pricing, the $15 counter fee comes back if you win, but the $15 fee for receiving the dispute does not. A refund after the dispute opens does not avoid that fee either.
Can I just refund the customer instead?
Not by refunding the original charge on its own. An open card dispute has its own reversal, so use the processor's accept or refund option inside the case.
What happens if I accept a Square chargeback?
You can select "No" in Square's seven-day response form, and the funds go back to the customer. Accept when the claim is valid or you cannot support your side.
Who decides the outcome of a chargeback?
The cardholder's issuing bank and the card network decide, not you and not your processor. Your job is to send clear, relevant evidence on time, or accept when the customer is right.
The Bottom Line
When a customer files a chargeback, open the case, note the reason code and due date, and let that date set your pace. Pull evidence that answers the specific reason, fraud, not received, not as described or cancelled subscription, and send it through your processor in a short, labelled packet. Accept when the customer is right or your records cannot back you up, and never refund the original charge on its own once a dispute is open.
Each dispute also shows you where your records are thin. A recognizable descriptor, policies shown before payment, tracked delivery and one owner for disputes mean the next notice takes twenty minutes instead of an afternoon, and customers with ordinary problems have an easier way to reach you first.
If disputes keep coming back because your store cannot show what was bought, shown or delivered, that is work we do at Web Leveling. Our custom e-commerce development builds stores on Stripe with a hand-written checkout, with payments running into your own Stripe account and your order history kept in accounts in your name. We cannot decide a dispute for you, because the issuer does that, but a checkout written for your store can show your terms before anyone pays. We work with small and medium businesses across the country and overseas. Tell us which records your last dispute asked for.
Terms
Chargeback words in this post
Tap a term to see what it means.
Chargeback. A card payment reversed by the cardholder's bank after the cardholder disputes it.
Issuer. The bank that issued the customer's card and decides the dispute.
Reason code. The category the dispute falls under, such as fraud or item not received.
Inquiry. On Shopify Payments, an early request for information that does not take the money at first.
Billing descriptor. The business name that appears on the customer's card statement.
AVS and CVV. Checks that compare the billing address and card security code with the bank's records.
3D Secure. An extra authentication step at checkout that confirms the cardholder is making the purchase.
