When a chargeback is initiated, navigating the VISA dispute process effectively and on time is crucial to resolving it in your favor. Here's an easy-to-follow breakdown of the steps:
1. Notification of Chargeback (NoC)
What Happens: You’re notified that a chargeback is being initiated.
Your Action: Prepare and submit defense documents or accept the dispute.
Key Point: The chargeback amount is usually debited from your account a few days after receiving the notification.
2. First Chargeback
What Happens: The disputed amount is withdrawn from your account.
Your Action: Upload defense documents within 18 days, or accept the chargeback.
Key Point: If you fail to act, this becomes the final stage.
3. Information Supplied
What Happens: PbN submits your defense documents to the card scheme.
Key Point: Once submitted, the documents cannot be modified.
4. Pre-Arbitration
What Happens: If the issuer rejects your defense, they escalate the dispute to Pre-Arbitration within 30 days of the defense submission.
Key Point: No arbitration can be requested after this stage.
5. Pre-Arbitration Outcomes
If Won: The issuer accepts your defense, and the chargeback is resolved in your favor.
If Lost: The dispute remains unresolved, and the chargeback is finalized.
6. Chargeback Reversed
What Happens: If the chargeback is resolved in your favor, the disputed amount is credited back to your account.
Key Point: This is the final resolution of the dispute.
Submitting Defense Documents
To ensure your defense is processed without delays, follow these file format and size requirements:
JPG: Max file size 10 MB
TIFF: Max file size 10 MB
PDF: Max file size 2 MB
Mastercard Rules: Defense documents must not exceed 19 pages.
Documents Needed for a Strong Dispute Defense
Include these documents based on the reason for the chargeback:
General Documents:
Invoice and service description.
Proof that credits/refunds were issued but not addressed by the issuer.
Evidence the cardholder used the service and didn’t cancel per your policies.
Terms and conditions agreed upon (include screenshots, not links).
Specific Scenarios:
Already Paid:
Proof the cardholder hasn’t paid.
Evidence of refunds issued.
Relevant email communications or agreements.
Canceled Services:
Proof the cardholder agreed to your cancellation policy.
Evidence services were used before cancellation.
Documentation of a cancellation request with services provided until that date.
Canceled Transaction:
Invoice, service description, and confirmation email.
Proof the service was provided (emails, invoices).
Evidence of service usage and previous, non-disputed payments.
Verification details like CVV checks, IP address, or device ID.
Canceled Recurring Transaction:
Proof the cardholder agreed to your cancellation policy.
Evidence services were used before cancellation.
Documentation showing the cardholder requested a cancellation for a different date.
Proof the cardholder showed continued interest in the service.