When a chargeback is initiated, it’s important for your practice to act quickly and carefully to resolve the dispute in your favor. Here’s a step-by-step breakdown of the Discover Dispute Process and what actions you need to take at each stage.
1. Notification of Chargeback (NoC)
What Happens: You’ll receive a notification that a chargeback is being initiated.
Action Required: Prepare and submit defense documents to contest the chargeback or choose to accept the dispute.
Key Point: The chargeback debit will typically happen a few days after receiving the NoC.
2. First Chargeback
What Happens: The disputed amount is withdrawn from your account.
Action Required: You have 40 days to upload defense documents or accept the dispute.
Key Point: If no action is taken within the 40 days, or if you accept the dispute, this stage is the final resolution.
3. Information Supplied
What Happens: PbN forwards your defense documents to the card network (Diners).
Key Point: Once your documents have been sent, you can no longer modify them.
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 chargeback is successfully resolved at this point.
5. Pre-Arbitration
What Happens: If the issuer rejects your defense, a second chargeback will be initiated, and the issuer will file a Pre-Arbitration case within 30-32 days of the defense submission.
Key Point: After this stage, you cannot file an arbitration case.
6. Pre-Arbitration Outcomes
Pre-Arbitration Won: If the issuer accepts your defense, the chargeback is resolved in your favor.
Pre-Arbitration Lost: If your defense is rejected, a second chargeback is finalized, and there is no further option for arbitration.
7. Second Chargeback
What Happens: A second chargeback is processed if the issuer declines your defense.
Key Point: This is the final stage, and no further recourse is available through Diners.
Submitting Defense Documents: Formats and Size Requirements
Ensure your documents meet the following criteria to avoid delays in processing chargebacks:
File Formats: JPG, TIFF, or PDF (Max file size: 3 MB per file)
Specific Requirements: For Discover chargebacks, files must be no larger than 3 MB.
Required Documents for Dispute Defense
To build a strong defense, here’s a list of key documents to provide based on the nature of the chargeback:
General Documents
Invoice copy
Description of goods/services
Proof that any credits or reversals were not addressed by the issuer
Evidence that the cardholder used the service and did not cancel according to your policies
Screenshots of terms and conditions agreed upon at purchase (not just links)
Already Paid
Proof of non-payment by the cardholder
Evidence of any refunds or payments made directly to the cardholder
Communication records regarding payment status or other agreements
Canceled Services
Proof that your cancellation or return policy was shared and agreed upon at purchase
Evidence the service was used between the billing and cancellation dates
Documentation showing the cardholder’s request for cancellation on a different date, if applicable
Proof that the cardholder did not attempt to resolve the issue with you (e.g., no emails or calls)
Canceled Transactions
Invoice and service description
Confirmation email sent to the cardholder
Proof that the service was provided (confirmation email, invoice, etc.)
Dates the cardholder used the service
Record of non-disputed payments
If available, include CVV/CVC check results and verification details like IP addresses and device IDs
Canceled Recurring Transactions
Proof of agreement to your cancellation or return policy
Evidence that services were used between the billing and cancellation dates
Documentation showing the cardholder’s continued interest in the service
Proof that the cardholder didn’t attempt to cancel or resolve the issue