---
title: Chargebacks and disputes
description: What a chargeback is, why chargebacks happen, how to respond with evidence in the Merchant Dashboard, and how to prevent them.
url: https://thepoints.io/docs/merchants/chargebacks
audience: [merchants]
---

# Chargebacks and disputes

A chargeback happens when a cardholder disputes a charge with their card issuer instead of asking you for a refund. The disputed amount is taken back from your account while the case is open. You can respond with evidence, and the issuer or card network decides the outcome.

Too many chargebacks can lead to added costs, network monitoring, account restrictions, or account closure. It pays to prevent them and to respond well when they happen.

## Types of chargebacks

- **True fraud:** someone used a stolen card or card number.
- **Friendly fraud:** the real cardholder disputes a valid charge. They may not recognize your business name, a family member may have made the purchase, they may have forgotten it, or they disputed instead of asking for a refund.

## Common reasons

| Reason | Examples |
|---|---|
| Unauthorized use | Stolen card or identity theft |
| Processing errors | Duplicate charges or the wrong amount |
| Customer disputes | Not received, damaged, or not as described |
| Recurring billing | Charges after cancellation or on the wrong schedule |
| Unclear descriptor | The customer does not recognize the name on their statement |

## How a dispute moves

1. **Retrieval request (sometimes).** The issuer asks for documents about a sale before a formal chargeback. Answer it. A good answer can stop a chargeback.
2. **Chargeback.** The case opens and the amount is taken back from your account.
3. **Your response.** You send evidence that the sale was valid.
4. **Decision.** The issuer reviews the case. If you win, the amount is returned to you.
5. **Further rounds (rare).** Some cases go to pre-arbitration and then arbitration, where the card network makes the final decision. Arbitration can carry significant costs for the losing side.

## Respond to a chargeback

1. Open **Disputes** in the [Merchant Dashboard](/docs/merchants/merchant-dashboard) and select the case.
2. Note the reason and the **response deadline** shown on the case. Late responses usually lose.
3. Upload clear documents. Common file types are PDF, JPEG, and TIF. Useful evidence includes:
   - Invoices and receipts
   - Shipping and tracking details, or proof the service was provided
   - Signed agreements or accepted terms
   - Messages with the customer
   - Your refund, return, and cancellation policies
4. Write a short explanation that answers the reason given.
5. Submit and watch for updates by email and in **Disputes**.

The issuer's review can take several weeks, and it may ask for more information. If you are not sure what evidence fits a reason, contact support.

To get dispute emails, make sure the right users have dispute notifications in their role. See [Users and roles](/docs/merchants/merchant-dashboard#users-and-roles).

## Prevent chargebacks

- Use chip or tap for in-person sales.
- Check the address and security code on online and keyed sales.
- Use a statement descriptor customers recognize.
- Post clear refund, return, and cancellation policies.
- Answer customers quickly so they come to you before their card issuer.
- Cancel subscriptions promptly when asked.
- Keep receipts, invoices, and proof of delivery.

## Need help?

Email info@thepoints.io or call (833) 374-1518.