Learn more about the reasons for disputes and how to respond to each.
Each card network defines hundreds of specific codes representing very granular dispute claims, many of which overlap across all the networks with which Zip does business. Zip maps each network code into one of five categories based on the general claim and the evidence you need to submit to effectively challenge that type of claim.
The five categories of disputes are below. Additional dispute types, such as for fraud or duplicate charges, are handled by Zip. These disputes are not the responsibility of the merchant and aren’t shown in the Merchant Portal. Zip uses the category provided by the cardholder’s bank.
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ZIP CATEGORY |
DESCRIPTION |
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The customer claims they’re entitled to a full or partial refund because they returned the purchased product or didn’t fully use it, or the transaction was otherwise canceled or not fully fulfilled, but you haven’t yet provided a refund or credit. |
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The customer claims they did not receive the products or services purchased. |
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The customer received the product but claims it was defective or damaged in some way, or was not described or represented in an accurate manner prior to purchase. |
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Because Zip cannot be used for subscription purchases, these are usually miscategorigzed by the customer’s bank and can generally be processed similar to Credit not processed disputes. |
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This is an uncategorized dispute, so contact the customer for additional details to find out why they disputed the payment. |
General evidence for all dispute categories
While each dispute reason requires specific types of evidence to show why the payment should stand, some types of evidence are universal for all dispute responses.
Discrediting evidence
Providing evidence of one of the following has a high likelihood of proving a dispute invalid and overturning the chargeback:
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EVIDENCE |
MERCHANT PORTAL EVIDENCE CATEGORY |
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Any documentation of the account owner withdrawing the dispute. |
Customer communication |
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Proof that you already compensated the customer before they initiated the dispute (either within Zip or using some other method). |
Customer communication |
Background evidence
The following types of evidence are relevant for most dispute types. You should include them in every dispute response when possible. Many of these fields are separate from any evidence you upload in the Supporting evidence section of the response form.
When your integration supports it, Zip automatically captures most of the data for background evidence and pre-populates the form fields in the Merchant Portal. The more information your integration collects and passes to Zip when your customer makes a payment, the better your ability to prevent disputes and fraud from occurring, and challenge them effectively when they do.
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EVIDENCE |
MERCHANT PORTAL EVIDENCE CATEGORY |
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The billing address provided by the customer. This field is automatically filled when possible. |
Billing address |
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The name of the customer. This field is automatically filled when possible. |
Customer name |
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The email address of the customer. This field is automatically filled when possible. |
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Any communication with the customer that you feel is relevant to your case (for example, emails proving that they received the product or service, or demonstrating their use of or satisfaction with the product or service). If you have multiple items of this type, consolidate them into a single file. |
Customer communication |
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Any receipt or message sent to the customer notifying them of the charge. |
Receipt |
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A description of the product or service and any relevant details on how this was presented to the customer at the time of purchase. |
Product or service details description |
Dispute category types
Credit not processed
The customer claims they’re entitled to a full or partial refund because they returned the purchased product or didn’t fully use it, or the transaction was otherwise canceled or not fully fulfilled, but you haven’t yet provided a refund or credit.
How to prevent it
- Have a clear return or cancellation policy that’s easy to find or explicitly disclosed to the customer prior to purchase.
- Honor your written policies promptly when a customer requests and is entitled to a full or partial refund.
How to overturn it
Explain and demonstrate one or more of the following:
- You already issued the refund your customer is entitled to
- The customer isn’t entitled to a refund
- The customer withdrew the dispute
Product not received
The customer claims they did not receive the products or services purchased.
How to prevent it
- For physical products, promptly ship them after payment is made
- Estimate shipping and delivery dates as accurately as you can, and communicate clearly with your customer. If shipping delays arise unexpectedly, keep your customer informed.
- Save shipping labels, and for high-value products consider requiring a signature upon receipt.
- Make it easy for your customers to reach out when they have issues receiving their products (for example: send receipts upon payment so your customers can easily reply to get in touch).
- For digital goods or services, maintain access logs or documentation that tie usage back to the customer.
- Honor your written policies promptly when a customer requests a full or partial refund they’re entitled to for products or services they didn’t receive.
How to overturn it
Explain and demonstrate one or more of the following:
- The product was in fact delivered or isn’t expected to have been delivered yet (for example, the agreed-upon delivery date is still in the future)
- You already issued a refund to the cardholder
- The customer withdrew the dispute
Product unacceptable
The customer received the product but claims it was defective or damaged in some way, or was not described or represented in an accurate manner prior to purchase.
How to prevent it
- Ensure that the description of products or services shown in advertisements, online, and transaction receipts are accurate, complete, and not misleading.
- Never refer cardholders to the manufacturer in lieu of attempting to resolve the issue directly—the business selling the product or service is liable and must be the point of contact for resolution.
How to overturn it
Explain and demonstrate one or more of the following:
- That the product or service was accurately represented prior to purchase
- That the product wasn’t damaged or defective
- You already issued a refund to your customer
- The customer withdrew the dispute
Subscription canceled
The customer claims they continue to be charged for a purchase they believe they shouldn’t be charged for. Because Zip cannot be used for recurring subscription purchases, these are usually miscategorigzed by the customer’s bank and can generally be processed similar to Credit not processed disputes.
How to prevent it
- Have a clear return or cancellation policy that’s easy to find or explicitly disclosed to the customer prior to purchase.
- Honor your written policies promptly when a customer requests and is entitled to a full or partial refund.
How to overturn it
Explain and demonstrate one or more of the following:
- You already issued the refund your customer is entitled to
- The customer isn’t entitled to a refund
- The customer withdrew the dispute
General
This is an uncategorized dispute, so contact the customer for additional details to find out why they disputed the payment.