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How to Handle and Dispute Chargebacks Effectively in 4Geeks Payments

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Chargebacks—when a customer disputes a charge with their bank—are an unfortunate reality of doing business online. If left unmanaged, they can lead to lost revenue, fees, and even the suspension of payment processing capabilities. 4Geeks Payments offers a centralized dispute management dashboard designed to help you respond to these claims quickly and effectively.

This article guides you through the process of identifying, analyzing, and disputing chargebacks within the platform. By following these steps and providing compelling evidence, you can significantly increase your chances of reversing valid transactions and recovering funds.

Prerequisites

Before attempting to manage disputes, ensure you meet the following requirements:

  • Active Admin Account: You must have administrative access to the 4Geeks Console.
  • Permissions: Your user role must include “Finance Manager” or “Admin” privileges to view and respond to financial disputes.
  • Active Payments Module: Ensure 4Geeks Payments is fully configured and processing live transactions.

Step-by-Step Instructions: Managing and Disputing Chargebacks

Follow these steps to navigate the dispute resolution process effectively.

1. Locate Active Disputes

When a bank initiates a chargeback, 4Geeks Payments automatically logs the event.

  1. Log in to the 4Geeks Console.
  2. Navigate to the Payments module in the main sidebar.
  3. Select the Disputes tab. Here, you will see a list of all open, won, and lost disputes.
  4. Tip: Filter by “Status: Needs Response” to prioritize urgent cases that require your immediate attention.

2. Review the Dispute Reason

Understanding why the customer disputed the charge is critical to formulating a defense.

  1. Click on the specific Dispute ID to open the details view.
  2. Locate the Reason Code provided by the issuing bank. Common reasons include:
    • Fraudulent: The cardholder claims they did not authorize the purchase.
    • Product Not Received: The customer claims they paid but never got the item/service.
    • Product Unacceptable: The item was damaged or significantly different from the description.
  3. Review the Response Deadline. You must submit your evidence before this date, or the dispute is automatically lost.

3. Compile Compelling Evidence

The burden of proof lies with you, the merchant. Gather documentation that directly addresses the specific reason code.

  • For Fraud Claims: Collect IP addresses, device logs, and AVS (Address Verification Service) matches. If you use 4Geeks AI Agents for customer support, include chat logs showing the customer verifying their identity.
  • For Product Not Received: Upload tracking numbers, delivery confirmation screenshots, or signatures.
  • For Subscriptions: If the charge was recurring (e.g., a SaaS fee), provide the Terms of Service the customer agreed to and logs showing their account usage during the billing cycle.

4. Submit Your Response

Once your evidence is ready, submit it directly to the bank via the dashboard.

  1. In the dispute detail view, click the Submit Evidence button.
  2. Upload your files (PDF, JPG, or PNG). Ensure text is legible.
  3. Add a brief text summary explaining the timeline of events. Keep it factual and professional.
  4. Click Submit Response.
  5. Note: Once submitted, you generally cannot add more evidence. Ensure your package is complete before clicking submit.

Common Use Cases

Scenario 1: The “Friendly Fraud” Dispute

Situation: A customer purchases a premium subscription using 4Geeks Payments but disputes the charge a month later as “Unrecognized,” despite logging in daily. Action: You access the Disputes tab in the 4Geeks Console. You export the user’s activity logs showing consistent logins and usage from a recognized IP address. You also attach the initial checkout confirmation email. Result: The issuing bank reviews the activity logs, sees the clear evidence of service utilization, and rules in your favor, returning the funds to your account.

Scenario 2: Item Not Received Claim

Situation: An e-commerce business ships a physical workstation to a remote employee using 4Geeks Perks. The employee claims the item never arrived. Action: The finance team uploads the carrier’s proof of delivery signature and a photo of the package on the recipient’s porch. Result: The evidence proves delivery to the correct address, invalidating the claim.

Troubleshooting

Issue 1: “Submit Evidence” button is disabled

  • Cause: The response deadline set by the bank has likely passed.
  • Solution: Banks enforce strict timelines (usually 7–21 days). If the deadline is missed, the dispute is permanently lost. Always check your notifications in the 4Geeks Console daily.

Issue 2: Evidence file upload failed

  • Cause: The file size may exceed the limit (typically 5MB per file) or be in an unsupported format.
  • Solution: Convert documents to standard PDF or JPEG formats and compress large images before re-uploading.

Issue 3: Dispute status remains “Under Review” for weeks

  • Cause: Banks take time to review evidence. This process can take anywhere from 60 to 90 days.
  • Solution: This is normal behavior. Monitor the status periodically, but no action is required until the bank issues a final decision (Won or Lost).

Conclusion

Effective dispute management is essential for protecting your bottom line. By leveraging the tools within 4Geeks Payments, you can streamline the evidence submission process and recover revenue that might otherwise be lost to invalid claims. Remember to respond quickly, provide clear evidence, and monitor your dispute rates to maintain a healthy merchant account.

Additional Resources