When a customer disputes a charge with their bank, you'll usually have a short window — typically 7 to 14 days — to respond with evidence before the funds are automatically removed from your account. This article walks you through exactly what to do when you receive a chargeback notice, from checking where it appears to submitting a winning response. For a broader look at why chargebacks happen, see About Chargebacks: What They Are, Why They Happen, and How the Process Works.
Where to Find Chargeback Notices
When your acquiring bank or payment processor receives a chargeback, they'll notify you and provide a form for you to complete with your side of the dispute. You'll typically have 7 to 10 days to respond, so it's important to check for notices regularly.
If your merchant account is serviced through CardConnect (legacy clients only): Log into your merchant processor's portal (e.g., CardPointe) to view your list of chargebacks.
If your merchant account is serviced through EnrollsyPay: Chargeback notices are forwarded to us by Nuvei, and we forward them on to you by email.
What a Chargeback Notice Looks. Like (EnrollsyPay)
Chargeback notices vary slightly by bank or processor, but they all include the same core details: your merchant and transaction information, the reason code, the dispute deadline, and instructions for responding.
Most notices also include a "Dispute Response" page for submitting your supporting documentation, shown below.
Before You Respond: What Not to Do
Don't issue a refund after you've received a chargeback notice. Your customer's bank may have already applied a conditional credit to their account. If you issue a separate refund on top of that, you likely won't be able to recover it — and you could end up responsible for both the refund and the chargeback.
How to Dispute a Chargeback, Step by Step
Once you've received a chargeback notice, follow these steps to build and submit your response. You must respond by the Chargeback due date (found on the top right of the notification) and provide the documentation.
Chargebacks can be reversed if the explanation and documentation are sufficient, but reversals are conditional. The customer's bank may dispute the case through an exception item, such as a pre-arbitration.
1. Understand the Chargeback Reason Code
Reason Code: Every chargeback comes with a reason code from the payment processor or card network (Visa, Mastercard, etc.) explaining why the customer disputed the charge — for example, "services not received" or "unauthorized transaction." See this resource to look up what a specific code means.
Review the Claim: Read the reason carefully so you understand exactly what the parent or guardian is disputing. This will shape the rest of your response.
2. Gather Supporting Evidence
Collect documentation that proves the charge was valid and that your school delivered the agreed-upon services. Depending on the dispute, this may include:
Explanation: A clear written summary of why the chargeback is invalid, including an itemized breakdown or description of the service provided.
Signed Enrollment Agreements: Proof that the parent or guardian agreed to the fees, payment terms, and refund policy.
Payment Receipts: Confirmation of the transaction date, amount, and payment method. See Printing Receipts, Statements & Invoices from the Admin Portal.
Attendance Records: If the dispute claims services weren't received, records showing the student attended classes or used the service. See How to Print or Download a Roster Report.
Communication Records: Emails, calls, or messages showing you addressed the parent's concerns or attempted to resolve the issue.
Refund Policy: A copy of your refund policy with the relevant section highlighted.
Delivery Confirmation: For physical items (textbooks, uniforms, etc.), proof of purchase or delivery.
3. Respond Promptly
Timeframe: You typically have 7 to 14 days to respond, depending on the card network or processor — don't wait to start gathering evidence.
Submit the Dispute: Submit your evidence by replying all to the original chargeback email, along with a written explanation that addresses the reason for the chargeback.
4. Write a Clear, Professional Rebuttal
Structure your written response around three points:
Acknowledge the Reason: Reference the chargeback reason code and briefly state why the charge is valid.
Provide Evidence: Point directly to the attached documentation supporting your case.
Cite Your Policy: Reference the specific refund or enrollment policy terms the parent or guardian agreed to.
5. Submit through the Correct Channel
Original Chargeback Email: Reply ALL to the original email sent about the chargeback. Make sure to follow their submission process and provide all requested information.
Include All Documentation: Include all necessary documents (e.g., receipts, agreements, emails) in the format requested by the processor.
6. Follow Up with Your Payment Processor
Monitor the Dispute: Check your email regularly for updates, and follow up if the case stalls.
7. Prepare for Arbitration If Neeeded
Request Arbitration: If you lose the dispute but believe you have a strong case, you can request arbitration through the card network for a final, binding decision.
Know the Cost: Arbitration adds fees and time, so it's generally worth pursuing only for higher-value transactions with strong evidence. (See the Arbitration section below for details on cost and timeline.)
8. Review Your Process
Prevent Future Chargebacks: After the dispute is resolved, look for gaps in your documentation, communication, or refund policy that could help prevent similar chargebacks going forward.
9. Keep Organized Records for Future Disputes
Organize Documentation: Maintain thorough records of transactions, agreements, communications, and deliveries so you're ready to respond quickly to future disputes.
By following these steps, you can respond to chargebacks effectively, protect your revenue, and reduce the chances of losing disputes you should win.
If the Dispute Escalates to Arbitration
If a chargeback isn't resolved after the initial dispute, either party can request arbitration (or "pre-arbitration" for Visa disputes). At this stage, the card association — Visa, Mastercard, etc. — reviews the evidence from both the acquiring and issuing banks and issues a binding decision.
Arbitration typically costs $500–$900 in fees and adds 10 to 45 days to the process, so it's usually only worth pursuing for higher-value transactions where you have strong supporting evidence.
After the Chargeback is Resolved
If you lose the dispute (or choose not to dispute it): You forfeit the collected fees, any services already provided, and any related processing fees. Once a chargeback is lost, the case is closed and cannot be appealed.
In either case, update your records manually. Enrollsy doesn't receive an automatic chargeback notification from the processor, so you'll need to apply a cash refund to the customer's account yourself to keep your records accurate. See Issuing a Refund for Cash or Check for instructions.
NOTE: We're working on automating chargeback recording in the future.