What is considered Evidence in Chargebacks?

By | October 16, 2020

If you are exploring the idea of a chargeback, perhaps you’re familiar with the basic process. However for our other readers, let us just briefly recap it. A Chargeback is a tool made available to a customer, in order to protect them from fraud. If a customer feels they have been wronged by a merchant, after receiving payment but not keeping up their end of the deal. So the customer applies for a chargeback, via their bank that issued them their card. Now the customer’s bank (issuer’s bank), collects the information about the said transaction and forwards it to the merchant’s bank (acquirer’s bank). And then the merchant can either accept the fault and return you your money, or they can fight the allegation. In this case, they form their case, along with compelling evidence that they did nothing wrong, and that they kept up their end of the deal. What could follow is both parties having to show compelling evidence and then a ruling being made by the issuer’s bank or in case of arbitration, by the card network.

Understanding the Context first

But at this point, the question rises, what exactly is considered compelling evidence in such a scenario. Before we look into what exactly these evidence could be, we need to understand the scenario. By that we mean, we need to look at the reason code. A reason code is basically a reference number used to indicate the type of fraud that has been alleged. Different card networks have different reason codes, for categorization of chargebacks. When a customer applies for a chargeback, the most important thing is to correctly choose the reason code. Because, even the right evidence, if filed under the wrong reason code, won’t win you your case.

After looking for the correct reason and applying for a chargeback with it, then we come to the associated evidence in those cases. Now for different reason codes, different documents would be considered compelling evidence. First let us look at some of the basic documents are used to build most cases –

  • Delivery Receipt
    A delivery receipt basically is an acknowledgement of a delivery, with the time, and place mentioned, along with the details of the receiver.
  • Pictures
    Often pictures or video recordings from security cameras are used as evidence of delivery of physical products.
  • Legal Contract
    Signing a legal contract at the time of purchase shows a sale was made by consent.
  • Purchase Receipt
    This is a receipt of payment being made to the merchant, with the particulars of the commodity mentioned.

Conclusion

Now since specific reason codes will have specific things considered as relevant compelling evidence, so you need to choose them accordingly. For example, for a digital product, the evidence could be a digital log of sign ins and services used. So, it is important to understand your case properly, choose the correct reason code and then accordingly give any proof which proves beyond doubt that you did uphold your end of the transaction and the other didn’t.

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