When a customer files a chargeback dispute, you have two choices: accept it or submit a detailed evidence package to contest it.
Please note that even if you prepare thorough documentation, the final result still depends on the issuer’s judgment. Understanding every step of the appeals process—and acting within the deadlines—is therefore critical to protecting your business.
The Chargeback Dispute Appeals Process
1. Fees
In addition to the initial “dispute fee,” you will also be charged a “dispute appeal fee.” This fee applies regardless of the final outcome, so factor this cost into your decision on whether to contest.
2. Submission Deadline
You must submit evidence within the deadline set by the issuing bank, typically 5 to 21 days. If you fail to act before the deadline, the cardholder automatically wins, and you lose the opportunity to appeal. As soon as you receive a dispute notification, confirm the deadline and begin preparing your documentation immediately.
3. Review Time
The payment service provider processes the evidence and submits it to the issuing bank. While processing times vary, issuers typically need 60 to 75 days to review the evidence and rule on the chargeback dispute. This is a relatively long waiting period, during which the disputed amount may remain frozen or deducted.
4. Outcomes
You win: You typically recover the chargeback disputed amount and the appeal fee (varies by region)
You lose: The cardholder keeps the chargeback disputed amount
Either way: The dispute still counts toward your dispute rate with the issuing bank
5. Long-Term Impact on Your Dispute Rate
Regardless of the outcome, your dispute rate will rise. If your dispute rate exceeds the card network’s monitoring threshold, you will face higher fees on every subsequent dispute. If disputes become excessive, you may be placed in a monitoring program involving additional fees and restrictions. Even if you win a particular dispute, there is still a cost—your dispute rate itself is a metric that requires long-term management.
Key Reminders
- Appeals incur additional fees, regardless of outcome
- Submission deadlines are typically 5 to 21 days—miss it and you automatically lose
- Issuer review takes approximately 60 to 75 days
- Your dispute rate rises regardless of outcome
- An excessive dispute rate may lead to a monitoring program and higher penalties
Coming Up in Part 2: The Five Best Practices for Collecting Evidence
From organizing evidence and providing proof of customer authorization to submitting relevant and concise documentation—these techniques will significantly improve your chances of winning. We’ll walk through how to build a clear, compelling evidence package that meets the issuer’s requirements.