When a chargeback is initiated, it is essential to act promptly and provide the right documentation to resolve the dispute in your favor. Here's a guide to the Discover/Diners chargeback process and your role at each stage.
1. Notification of Chargeback (NoC)
What Happens: You’ll be notified of the chargeback initiation.
Your Action: Submit defense documents or accept the dispute.
Key Point: The chargeback amount will typically be debited within a few days.
2. First Chargeback
What Happens: The disputed amount is withdrawn from your account.
Your Action: You have 40 days to submit defense documents or accept the chargeback.
Key Point: If no action is taken, the case will automatically close in favor of the cardholder.
3. Information Supplied
What Happens: PbN sends your defense documents to the card network (Diners).
Key Point: Once sent, the documents cannot be modified.
4. Chargeback Reversed
What Happens: The disputed amount is temporarily returned to your account while the issuer reviews your defense.
Key Point: If your defense is accepted, the case is resolved at this stage.
5. Pre-Arbitration
What Happens: If the issuer rejects your defense, a second chargeback is initiated, and a Pre-Arbitration case is filed within 30-32 days.
Key Point: You cannot escalate to arbitration after this stage.
6. Pre-Arbitration Outcomes
Pre-Arbitration Won: The chargeback is resolved in your favor.
Pre-Arbitration Lost: A second chargeback is finalized, and no further action can be taken.
7. Second Chargeback
What Happens: The second chargeback is processed if the issuer declines your defense.
Key Point: This is the final stage with no further options for dispute resolution.
Submitting Defense Documents
To avoid delays, ensure your documents meet these requirements:
File Formats and Size Limits
JPG: Maximum file size 10 MB
TIFF: Maximum file size 10 MB
PDF: Maximum file size 2 MB
Specific Requirements for Diners and Discover:
The maximum file size is 3 MB for all files.
Key Documents to Submit for Chargebacks
Here’s a checklist of documents you may need based on the type of chargeback:
General Disputes
Invoice copy
Description of goods/services provided
Proof of credits/refunds (if applicable)
Evidence the cardholder used the service or didn’t cancel per your policies
Terms and conditions (screenshots, not links)
Common Scenarios
Already Paid:
Proof of non-payment
Refund/payment records
Communication history about payment status
Canceled Services:
Cancellation/return policy proof
Evidence the service was used before the cancellation
Documentation of cancellation requests
Canceled Transactions:
Invoice and service descriptions
Proof of service provided (emails, dates, etc.)
Records of payments made
Recurring Transactions:
Agreement to cancellation/return policies
Proof services were used
Documentation of failed cancellation attempts
