Chargeback Management

What is a chargeback?

A chargeback occurs when a cardholder contacts their issuing bank to dispute a transaction, and then the issuing bank submits a dispute case, leading to a payment reversal and refund to the cardholder. Not all cardholder dispute requests result in a chargeback. Chargebacks depend on whether the issuer submits a dispute case.

When BlueSnap is notified of a chargeback, we reverse the sale and debit your account for the transaction amount. You have the right to dispute chargebacks for:

  • transactions you believe are valid.
  • transactions you have already refunded. It is critical that you dispute chargebacks in cases where you have already refunded the transactions.

While BlueSnap will attempt to dispute some refunded chargebacks on your behalf, it is important for you to also represent any that are reported to you, because sometimes we are unable to match the chargeback to the refunded transaction.

You can dispute chargebacks by using our chargeback management services, described below. You will have approximately 10 days from the chargeback created date to dispute a chargeback, a process also known as a representment. The Due Date, the last day you have to submit a representment, is displayed in the BlueSnap Merchant Console with each chargeback. If a representment is decided in your favor, we'll return the transaction amount to your account.

Common chargeback reasons

Shopper disputes

  • The shopper did not receive the product or service.
  • The shopper was dissatisfied with the product or service and was not able to reach a resolution with the merchant.
  • The merchant did not refund the transaction in a timely manner.

Processing errors

  • The shopper was charged twice for the transaction.
  • The shopper was charged an incorrect amount.

True Fraud (Identity Theft)

  • The purchase was not made or authorized by the legitimate card holder due to a variety of fraudulent reasons including identity theft, credit card theft, and scams.

Friendly Fraud (False Fraud)

Friendly fraud or “false fraud” occurs when a shopper (or authorized party) makes a legitimate and authorized purchase, but then files a chargeback falsely claiming it as fraud, services not rendered, or products not received. In some cases, a shopper may commit friendly fraud inadvertently by not fully understanding the process of obtaining a refund and filing a chargeback instead.

Should I dispute chargebacks?

Depending on the chargeback reason, you might find it's in your best interest to dispute. In doing so, you can:

  Recover lost revenue.

  Defend your business against friendly and malicious fraud.

  Challenge invalid chargebacks. Some situations include:

  • A refund had been issued prior to the chargeback notification. It is critical to dispute chargebacks in cases where you have already issued a refund.
  • The shopper requested a chargeback after the allowable time frame, as determined by the card brand.
  • Chargeback liability had shifted to the issuer.

  Reduce future chargeback occurrences. When an issuer sees you successfully dispute chargebacks, they may conduct more research on cardholder dispute requests before submitting a formal case.

Can I prevent chargebacks?

You can prevent some chargebacks. It's always best to do that whenever possible. We provide some best practices below.

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Dispute Management service levels

BlueSnap has partnered with Chargebacks911 to facilitate the dispute process and provide you with comprehensive reporting and analytics, as well as the opportunity to have chargebacks disputed on your behalf. We offer two service levels:

The following table highlights the capabilities of each of the service levels available to you. More detail is available in the descriptions below the table.

CapabilityFull-Service Dispute ManagementSelf-Service Dispute Management
Automated responses to retrieval requests   :white-check-mark:
Basic reporting   :white-check-mark:   :white-check-mark:
Chargeback performance monitoring   :white-check-mark:   :white-check-mark:
Advanced analytics to identify root chargeback causes   :white-check-mark:   :white-check-mark:
Chargebacks of valid sales disputed on your behalf   :white-check-mark:
Customizable thresholds to determine when chargebacks are disputed   :white-check-mark:
Case Management so you can assign cases to your own agents   :white-check-mark:
Case Builder so you can compile evidence and build your cases   :white-check-mark: **
Initial chargeback diagnostic report with recommended improvements   :white-check-mark:
PriceBased on transaction amountFixed price per dispute

** Please note: the file type needs to be PDF or JPG, have a maximum size of 10MB and audio recordings are not accepted by the banks as evidence (the recordings will need to be transcribed).

Full-Service Dispute Management

This level is ideal if you want BlueSnap and Chargebacks911 to fully manage the chargeback dispute process for you.

  • You'll receive an initial chargeback diagnostic report in which Chargebacks911 reviews your websites, user experience, and sales process. Chargebacks911 then recommends improvements to common business practices that can reduce chargebacks and increase dispute win rates. These recommendations are based on card network regulations, machine learning, and how merchant chargeback data compares to similar merchants.
  • We will dispute all chargebacks of valid sales, such as chargebacks resulting from friendly and malicious fraud.
  • We respond to all retrieval requests on your behalf. Retrieval requests typically occur when an issuer requests more information about a charge before submitting a formal case.
  • Detailed reporting and analytics are available right from your Chargebacks911 Console. You can view chargeback ratios by card brand and reason code, as well as view analytics to identify root chargeback causes.

Note: We only contact you if we need additional information to win the dispute.

Chargebacks911 dashboardChargebacks911 dashboard

Chargebacks911 dashboard

Enrolling in Full-Service Dispute Management

To enroll in Full-Service Dispute Management, contact BlueSnap Merchant Support. You’ll receive an email explaining how to access your Chargebacks911 account.

Note: In order to successfully dispute chargebacks, Chargebacks911 requires access to any merchant information system that stores customer data and communications, such as a CRM, Order Management, and Customer Support systems. Chargebacks911 reviews your business practices (such as terms and conditions, refund policy, and sales methods) with you to identify any merchant-specific data attributes that may be required to dispute chargebacks. Typically, branded CRM systems and other branded systems store all the required information. If you use a custom system, Chargebacks911 will review the data available in each system and ensure that they have enough data to submit disputes on your behalf.

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Self-Service Dispute Management

This level is ideal if you want to decide which chargebacks to dispute, and you are prepared to create and upload the dispute packages online. This would include disputing chargebacks when a refund was previously issued to a customer.

To help you manage and build your dispute cases, you’ll have access to two powerful tools in your Chargebacks911 Console:

  • Case Management streamlines the dispute process by allowing you to assign cases to your own agents.
  • Case Builder provides the structure for you to compile the evidence to submit strong cases. You’ll conveniently upload all cases right to your Chargebacks911 Console.

In addition, the comprehensive reporting and analytics described above are available right from your Chargebacks911 Console within your BlueSnap Merchant Console.

To enroll in Self-Service Dispute Management, contact merchant support. You’ll receive an email explaining how to access your Chargebacks911 account.

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Chargeback dispute process

The chargeback dispute process consists of three steps:

  1. Notification
  2. Dispute
  3. Resolution

1. Notification

When the card issuer informs BlueSnap about a chargeback, we notify you by email and the Chargeback IPN (if IPNs are enabled for your account) and we debit the transaction amount from your account.


If a chargeback is received, you cannot refund the transaction through your BlueSnap Console or API. Do not refund the shopper directly using cash, check, bank transfer, or another method, because you could potentially lose both the chargeback and refund amounts.

2. Dispute

Depending on your service level, either you or Chargebacks911 will dispute the chargeback.

  • If you have opted into Full-Service Dispute Management and the chargeback is eligible to be disputed, the case is built and submitted for you.
  • If you are not using Full-Service Dispute Management, you have the option to build the case yourself and upload it directly to your Chargebacks911 Console.

Outstanding disputes can be monitored from your Chargebacks911 Console.

Note: After enabling Chargebacks911 on your account, you can sign in to the Chargebacks911 Console from the BlueSnap Merchant Console by clicking Chargebacks, as shown below.

If you are the Admin user of the BlueSnap account, the Chargebacks911 Console opens in a new tab. If you are not the Admin user, please contact the Admin user of your company’s Chargebacks911/BlueSnap account in order to obtain your own Chargebacks911 login credentials.

3. Resolution

It can take up to 95 days for the issuer to send their decision about your dispute. The chargeback record in Chargebacks911 will be updated to a win if the representment was won or left as pending if the representment was lost. If the issuer resolves the case in your favor, we credit your account for the transaction amount.

Note: The cardholder has approximately 60 days from the resolution date to file a re-dispute.

If the issuer resolves the case in the cardholder's favor, the transaction is canceled and the transaction amount is not returned to your account. If, at that time, you want to pursue the case further, you must resolve it with the shopper directly or seek legal advice. BlueSnap will no longer be involved in the dispute.

In the Chargebacks911 Console, your represented chargebacks are broken out into six categories in Case Management: New, Assigned, In Progress, Completed, Not Disputed and Expired.

  • New: chargebacks recently received
  • Assigned: chargebacks assigned to a specific analyst
  • In Progress: chargebacks worked and waiting to be sent out for processing
  • Completed: chargebacks with successfully processed representments pending the final outcome
  • Not Disputed: chargebacks a merchant has selected not to dispute
  • Expired: chargebacks beyond timeframes for representment

In the Chargebacks911 Console under Support there are Help tutorials which identify Chargebacks, Case Management and User Management and are helpful in visualizing how Chargebacks911 works.

Note: There are significant costs involved to continue to pursue a dispute after the issuing bank has decided in the cardholder's favor.



  • Disputing a chargeback does not guarantee the issuing bank will reach an agreement in your favor.
  • Chargeback dispute resolutions are not decided by BlueSnap and are solely determined by the rules and regulations set by the card payment brand.

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Chargeback best practices

  1. Provide very clear and concise policies on order returns, fulfillment, refunds, and chargebacks. Also add a clear statement, prominently displayed on your website, that makes your policies to protect your customers very explicit. This will help discourage customers who look for opportunities to make fraudulent claims, commonly known as “friendly fraud.”

  2. Dispute ALL chargebacks that have already been refunded prior to the chargeback with all available evidence within the allowed timeframe to show that the transaction was properly refunded. This will allow you to easily win these chargebacks if disputed with the proper refund evidence and on time. If a large volume of chargebacks are due to previously refunded transactions, review the timelines of refunds being processed and send a confirmation of the refund and projected posting date. 

  3. Provide transparent customer support and provide options for customers that are unhappy with a product or service to mitigate any issues that may lead to a chargeback. If a customer is complaining about a product or service, your best option is to try and handle the situation before it becomes a chargeback. Customers are less likely to initiate a chargeback if they feel they can quickly and easily resolve their concerns through a company’s customer service department.

  4. Always utilize strong fraud prevention techniques and tools such as Kount, as all business models can become a victim of fraud and/or friendly fraud. If you have a third party fraud vendor or are in an industry with higher risk for fraud,, consider adding targeted fraud rules or a synergistic Kount model to increase fraud protection.  

  5. Friendly chargeback disputes can be handled by educating your customers. Whenever possible, contact the customer that filed the chargeback (before you file the dispute) and attempt to provide the customer with good customer service options such as store credit, or a product reship, with the agreement that the customer will reverse the chargeback (note: once you start a dispute, the customer can no longer reverse the chargeback with their bank, and you will have to go through the full process). Once handing the dispute with the customer, an e-mail or letter from the customer stating they no longer wish to dispute the transaction is the best option for representing the original chargeback if the customer does not reverse it.  

  6. While merchants can pick which chargebacks they would like to fight, all banks and chargeback experts strongly discourage merchants from not disputing any of their chargebacks. Analyze every chargeback claim to identify when a chargeback can be disputed and what compelling evidence you will provide. If a merchant does not dispute a chargeback, that merchant is almost guaranteed to lose 100% of its profits/revenue on every chargeback not disputed properly. Merchants should seek to recover as much as possible, especially when they have clear and compelling evidence. 

  7. It is critical that all merchants dispute chargebacks with clear and compelling evidence before the chargeback expires. Once expired, the merchant will not have the ability to dispute the chargeback, regardless of the evidence. 

  8. Adding a checkbox on the checkout page that requires the customer to agree to all terms, conditions, and refund policies prior to placing the order is a way to ensure the shopper is aware of your policies, and also provides compelling evidence for a representment if a chargeback is filled.

  9. If the descriptor is vastly different than the DBA or website name, clearly advise your customers of the unique descriptor before the purchase to prevent unnecessary chargebacks caused by misidentification. For example, the ABC Store informs their customers, “Your credit card statement will show this charge as ABCompany”. 

  10. All merchants should read and fully understand the unique chargeback guidelines, recommendations, and policies for all accepted card types, such as Visa, Mastercard, and American Express.

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Updated 4 months ago

Chargeback Management

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