The process step by step
1. The customer disputes the charge
The cardholder does not recognise the charge (fraud, service not received, cancellation, etc.) and contacts their bank directly, not the merchant.
2. The issuing bank opens the case
The bank registers the dispute, assigns a reason code and notifies the payment network (Visa, Mastercard, etc.), which in turn notifies Avirato Payments.
3. Avirato Payments alerts the merchant
The merchant receives a notification with case details and a deadline — usually between 7 and 20 days — to submit a defence. Acting within that window is essential.
4. The merchant submits evidence
The more relevant documentation you provide, the better your chances. Useful examples:
- Booking or order confirmations
- Cancellation policies accepted by the customer
- Correspondence (emails, messages, support tickets)
- Proof of check-in, delivery or service performance
- Transaction data, IP, device or 3D Secure authentication
5. The bank reviews and decides
After reviewing the evidence, the bank issues a verdict. If the chargeback is confirmed, the amount returns to the customer and the merchant also bears the dispute process fee.
What reasons do customers usually give to dispute a charge?
1. Fraud
The cardholder claims the transaction was unauthorised. Without 3D Secure authentication (VBV, MSC, etc.) it is often harder to win.
2. Service or product not received
The customer says they never received what they paid for (stay, product, service, etc.).
3. Service or product not as described
They claim what they received does not match what was promised or described.
4. Cancellation or refund not processed
They say they cancelled within the allowed time and were not refunded.
5. Duplicate charge or amount error
They claim they were charged twice or for the wrong amount.
6. Unrecognised charge
They do not recognise the business name on their bank statement (card descriptor).
7. Subscription cancellation or unauthorised recurring charge
Typical for recurring billing: the customer denies authorising the renewal or periodic charge.
Documentation to defend a chargeback
Each dispute reason requires different evidence. Match your response to the reason code on the case and always include the transversal documents, plus what is specific to the scenario.
General documentation (almost always required)
- Receipt or invoice for the transaction
- Terms and conditions / merchant policies in force at the time of purchase
- Proof that those terms were accepted (checkbox, signature, timestamp)
- Full communication history with the customer (emails, chats, support tickets)
- Date and time of the original transaction
- Product or service description as it was offered
Product or service not received (Non-Receipt)
- Proof of transaction (date, amount, reference)
- Proof of shipment with tracking number
- Delivery confirmation (signature, photo, courier GPS)
- Communication with the customer about the estimated delivery date
- Shipping policy accepted by the customer at purchase
- Order screenshot with shipping address confirmed by the customer
Product or service not as described or defective
- Original product/service description (page screenshot, specs sheet, contract)
- Terms and conditions accepted by the customer
- Evidence that what was delivered matches the description (photos, specs, video)
- Communication history with the customer reporting the issue
- Returns / warranty policy accepted
- Proof of remedy offered (partial refund, replacement, repair), if applicable
Credit or refund not processed
- Proof that the refund was issued (date, amount, method)
- Refund transaction reference number
- Refund policy accepted by the customer
- Communication confirming the refund agreement
Service or subscription cancellation not processed
- Cancellation policy accepted at the time of contracting
- Date and method of the customer’s cancellation request (if any)
- Record of service use after the claimed cancellation date (if applicable)
- Communications related to the cancellation
Duplicate transaction or incorrect amount
- Proof of both transactions (dates, amounts, references)
- Evidence they were distinct transactions (two separate orders) or an explanation of the error
- Merchant statement or transaction log
Fraud / unrecognised transaction
- IP address, device and purchase location
- Authentication data (3D Secure, OTP, CVV match, AVS match)
- Previous purchase history (if a returning customer)
- Delivery details matching the cardholder
How does case opening work at the customer’s bank?
Receipt and validation
The bank checks the transaction history and that the dispute is filed within the allowed window (usually 60–120 days from the transaction, depending on the network and reason).
Reason code
A standardised payment-network code is assigned that identifies the type of dispute.
Provisional credit to the customer
In many cases the bank provisionally credits the customer while the case is open.
Fund retention from the merchant
As a precaution, the disputed amount is often withheld or deducted from the merchant’s settlements immediately.
If the merchant wins the case
- The chargeback is reversed and funds are credited back to the merchant.
- It can take from a few days to a couple of weeks to appear.
- Some banks charge a dispute fee regardless of the outcome; you may not recover 100% of the original amount.
- The case remains on the merchant’s history.
If the merchant loses the case
- The money stays with the customer: you lose the sale.
- You also bear the cost of the product or service already delivered and the chargeback fee (usually between USD/EUR 25 and 30, depending on your agreement).
- A high chargeback ratio (typically above 0.65%–1%) can lead to fines or termination of the payment account.
- The decision is usually final; arbitration is costly and uncommon.
The best defence: prevention
Reducing chargebacks starts before a dispute arrives:
- Provide excellent customer service and respond quickly to issues.
- Publish and communicate clear cancellation and refund policies.
- Send confirmation emails with purchase or booking details.
- Use identity verification and 3D Secure at payment when possible.
Specific fees and ratio thresholds depend on the agreement between the merchant and Avirato Payments. Check your terms of service or contact support if you have questions.