Use this article to respond to card disputes (chargebacks on card payments) in the Kustom Portal: how much time you have, how to organise your evidence, what evidence to submit for each dispute category and what card dispute fees cost.
For what applies to every dispute regardless of payment method, see What are disputes.
How to respond to a card dispute
You have limited time to respond to a card dispute, usually 7 to 21 days depending on the card network. You have two options:
Accept the card dispute. The customer keeps the disputed amount and a card dispute fee is charged.
Challenge the card dispute. Submit evidence to try to overturn the customer's claim. If you win, the disputed amount is returned to you and no dispute fee is charged.
After you submit evidence, a final decision from the customer's bank typically takes 2 to 3 months.
Check the card dispute category first
Each card dispute category has different evidence requirements. Check the category before you collect evidence, so you submit what the bank needs. You can see the category on the dispute's detail page in the Kustom Portal. See Card dispute categories and suggested evidence below.
Best practices for responding to card disputes
When a cardholder disputes a payment with their bank, the bank aims to protect the customer from paying for something they did not authorize, or that was misrepresented or damaged. As the merchant, you can challenge the claim with your own evidence. Kustom does not influence the bank's decision, but these practices help you defend the dispute.
Organise your evidence
Present it chronologically. Put evidence in the order events happened, to create a clear timeline of the transaction and any communication.
Group it by type. Keep receipts, communications, policies and system logs in separate sections.
Include summaries. Briefly explain what each piece of evidence shows.
Keep it readable. Make sure all text is legible and images have enough contrast and resolution.
Keep evidence relevant and to the point
Card issuers review thousands of responses every day. A long explanation does not make your case stronger, and evidence unrelated to the dispute reason does not help. For example, your return policy is not relevant to a claim that a product never arrived. Explain clearly and briefly why the claim is incorrect and how your evidence proves it, in a neutral, professional tone.
Example of a clear card dispute response
Example of a clear card dispute response
Jenny Rosen purchased [product] from our company on [date] using a Visa credit card. We shipped the product on [date] to the address provided by the customer, and it was delivered on [date] as shown in the tracking file provided. The claim that the product was not received is therefore incorrect.
You can investigate the dispute while collecting evidence, for example by checking Google Maps and Street View to see where a delivery took place. Email or text conversations with the customer can help but do not verify identity, so only include the relevant parts and remove duplicate content from long threads.
Keep evidence files short
Card issuers review responses manually and will not read through long files. For example, if the network reason code is "Credit Not Processed" because the customer did not follow your cancellation policy, upload only the relevant section of that policy, not your entire terms and conditions, and highlight the relevant detail.
Include proof of service or delivery
Apart from fraud, the most common card dispute reasons are claims that products or services were not delivered, were defective or unsatisfactory or were not as described.
For physical goods, provide proof of shipment and delivery with the full delivery address, not just the city and postal code. The address should match the one approved at checkout, and both the name of the person who ordered and the recipient's name should be included. If the recipient's name differs from the customer's, for example for a gift, be ready to explain why. Include the recipient's name confirmation on delivery, or explain why delivery was contactless.
For digital goods, include evidence such as an IP address or system log proving the customer downloaded the content or used the service.
Include your terms of service and refund policy
Show that the customer agreed to your terms of service at checkout, or did not follow them. A clear screenshot of how your terms are shown at checkout, with the relevant policy highlighted, works well. Do not include your entire policy text, since the bank will not search through it.
Combine files of the same evidence type
You can only submit one file per evidence type. Combine several items of the same type, for example several emails or text message screenshots, into one file of customer communication. This also keeps your total file length down.
File formats and limits for card dispute evidence
Only PDF, JPEG or PNG files are accepted.
The combined file size cannot exceed 4.5 MB.
The combined page count must be under 50 pages.
If needed, compress files with a tool such as Smallpdf.
Card dispute categories and suggested evidence
Each card dispute category below explains how to prevent it, how to overturn it and which evidence to submit for physical products, digital products or services and offline services.
Credit not processed
Credit not processed
The customer claims they are entitled to a full or partial refund because they returned the product, did not fully use it or the transaction was cancelled or not fully fulfilled, but no refund has been issued yet.
How to prevent a "Credit not processed" dispute
Have a clear return or cancellation policy that is easy to find or explicitly shown before purchase.
Follow your written policies promptly when a customer is entitled to a refund.
How to overturn a "Credit not processed" dispute
Show one or more of the following: you already issued the refund the customer is entitled to, the customer is not entitled to a refund or the customer withdrew the dispute.
Suggested evidence
The wording of your refund or cancellation policy as shown to the customer, an explanation of how and where it was shown before purchase, your explanation of why no further refund is owed, whether the customer tried to resolve the issue with you before disputing, any related communication and proof of return status if applicable.
Duplicate
Duplicate
The customer claims they were charged more than once for the same product or service.
How to prevent a "Duplicate" dispute
Correct accidental double charges immediately and tell the customer.
Send detailed receipts that make the purpose of each payment clear.
Make sure your integration handles errors without charging twice.
How to overturn a "Duplicate" dispute
Show that each payment was for a separate product or service, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
The charge ID of the payment that looks like a duplicate, an explanation of the difference between the two payments, separate receipts or shipping labels for each and any customer communication about the issue.
Fraudulent
Fraudulent
The most common card dispute type. The cardholder claims they did not authorize the payment, either because they do not recognize a legitimate charge or because the card was genuinely used fraudulently.
These disputes are difficult to win, since the claim is often valid. If you believe the charge was genuinely fraudulent, accept the dispute.
How to prevent a "Fraudulent" dispute
Make your statement descriptor clearly recognisable as your business.
Send receipts immediately after payment.
Follow general fraud prevention best practices. See Fraud prevention.
How to overturn a "Fraudulent" dispute
Show that the legitimate cardholder or an authorized representative made the payment, that you already issued a refund or that the customer withdrew the dispute or acknowledged the charge.
Suggested evidence
For physical goods: evidence linking the recipient to the cardholder, a matching shipping address, the shipment date and tracking details, and any earlier undisputed payments on the same card. For digital goods: the customer's IP address, name, email and activity logs showing access or download after payment. For offline services: evidence linking the service recipient to the cardholder and documentation of when the service was provided.
General
General
An uncategorized card dispute. Contact the customer to find out why they disputed the payment.
Product not received
Product not received
The customer claims they did not receive the product or service.
How to prevent a "Product not received" dispute
Ship physical products promptly after payment.
Estimate delivery dates accurately and communicate delays clearly.
Save shipping labels and consider requiring a signature for high value items.
For digital goods, keep access logs that link usage to the customer.
How to overturn a "Product not received" dispute
Show that the product was delivered or is not yet expected to have arrived, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
For physical products: proof the customer has the item, the shipping address, shipment date, carrier and tracking number. For digital products: IP address, name, email and access logs. For offline services: documentation showing the service was provided and when.
Product not acceptable
Product not acceptable
The customer received the product but claims it was defective, damaged or not accurately described before purchase.
How to prevent a "Product not acceptable" dispute
Keep product descriptions, images and receipts accurate and not misleading.
Handle the issue yourself rather than referring the customer to the manufacturer.
How to overturn a "Product not acceptable" dispute
Show that the product was accurately described, that it was not damaged or defective, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
A description or image of how the product was presented before purchase, any related customer communication and your refund policy as shown to the customer.
Subscription cancelled
Subscription cancelled
The customer claims you kept charging them after they cancelled a subscription.
How to prevent a "Subscription cancelled" dispute
Cancel subscriptions promptly on request and confirm the cancellation to the customer.
State clearly at signup that the customer is agreeing to recurring payments.
Explain your cancellation process clearly.
How to overturn a "Subscription cancelled" dispute
Show that the subscription was still active and the customer did not follow the cancellation process, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
Your cancellation policy as shown to the customer, an explanation of how and when it was shown, why the payment is still valid and any renewal notice or proof that the customer kept using the service.
Unrecognized
Unrecognized
The customer does not recognize the payment on their statement. In practice, the bank treats this like a fraudulent dispute.
How to prevent an "Unrecognized" dispute
Make your statement descriptor easy to recognise. See Update account and business information.
Send receipts at payment so customers remember what they paid for.
How to overturn an "Unrecognized" dispute
Show that the legitimate cardholder or an authorized representative made the payment, that you already issued a refund or that the customer withdrew the dispute or acknowledged the charge.
Key reminders for card disputes
You only get one chance to respond to a card dispute. No further responses are allowed.
If you miss the deadline, the dispute is automatically lost.
All dispute outcomes are final.
Card dispute fees
When you lose a card dispute, the customer's bank charges Kustom a dispute fee, and Kustom passes it on to you. No fee is charged if you win. The fee depends on the customer's country, not your location.
The table below shows the card dispute fee for a lost dispute by the customer's country. All fees exclude VAT.
Customer country | Currency | Card dispute fee |
EEA (European Economic Area) | EUR | 15 |
UK | GBP | 15 |
Switzerland | CHF | 15 |
Norway | NOK | 150 |
Denmark | DKK | 150 |
Sweden | SEK | 150 |
Poland | PLN | 65 |
Czech Republic | CZK | 400 |
US | USD | 15 |
Canada | CAD | 15 |
Australia | AUD | 25 |
New Zealand | NZD | 25 |
Romania | RON | 75 |
Card schemes such as Visa and Mastercard set these fees and can change them without notice. Kustom makes reasonable efforts to keep this table current but cannot guarantee it shows the latest figures. Contact Kustom support for the current fees.