When a customer checks their bank statement and sees a transaction they don't recognise, they may call their bank to let them know they didn't make the payment and want their money refunded. The bank will in this case open what's called a "Dispute" with one of our acquiring partners.
When a dispute is opened, you as the merchant will receive a notification our acquring partner to let you know someone has been charged by your company without recognising the transaction. You will get a certain amount of time and a deadline before which you will need to gather and submit evidence showing the transaction was legitimate in order to avoid a chargeback. This evidence could be:
- Receipts showing delivery of the product or service with the customer's name
- Documented communications between you and the customer (i.e. screenshot of email)
- A written statement talking about your interaction with the customer
In short, the more you can show to prove the transaction was legitimate, the more likely you are to win the dispute and avoid any chargeback.