📝 Overview
What is a Chargeback?
A chargeback occurs when a client or their bank challenges all or part of a purchase. When this happens, the disputed funds are temporarily reversed and you as the merchant will need to respond with evidence to either confirm the refund or dispute the claim.
Common Reasons for Chargebacks
The cardholder is claiming the transaction was processed without their permission
The bank is claiming the transaction lacked sufficient electronic authorization or account verification
The cardholder is claiming the goods or services received were not as described, or arrived damaged, defective, or unsuitable
The cardholder is claiming an unauthorized no-show fee or add-on charge was applied to their account
The cardholder is claiming a single transaction was processed more than once on the same card, at the same location, for the same amount, on the same date
⛔Please note:
DaySmart is not responsible for any disputes initiated by a client against the business. DaySmart and CardConnect are unable to stop chargebacks from happening, as this pushback is coming directly from the client's bank reversing or disputing a settled transaction. Therefore, chargebacks must be resolved directly between the business and the client.
Once a chargeback is started by the client, the business has 15-30 days to start the dispute. If the due date is missed, the only way to recoup funds is to contact the client and run the payment again.
To receive notifications when a chargeback occurs, click on the link below for an article that goes over how to enable dashboard and email alerts.
🔎 How to locate the Chargeback details
Log in to your CardPointe account
Select the Reporting tab, then click Chargebacks
From here, you will find the Chargeback Date, the Reason for the chargeback, and the $ amount
You can click on the Transaction # to view the original transaction information, including the transaction date and the collected client information.
🧠 Options to Handle a Chargeback
It is best to reach out to the client first and come to a resolution with them about the payment. If a cardholder is unresponsive or uncooperative, or you have already refunded the transaction, you can dispute the chargeback through CardPointe's third-party partner, Business Track.
1️⃣ Settle with the Client and their bank
Click the arrow to learn more about setting with the client
Click the arrow to learn more about setting with the client
Since Chargebacks are initiated by the client or the client's bank, you can reach out to the client if you have their contact information to discuss the issue and ask if it's for any of the common reasons listed above.
With a better understanding of why the charge may have been contested, you can try to negotiate with the client to a price they agree to, if needed, and run the transaction again to collect some funds.
If there are still issues after retrying the payment or the cardholder says they didn't initiate the chargeback, the cardholder should speak with their bank.
If you're unable to reach the client or they are being uncooperative, you can still dispute the charge following the steps in Dispute the chargeback with Business Track
2️⃣ Dispute the chargeback with Commerce Control Center
Click the arrow to learn how to dispute the charge in Commerce Control Center
Click the arrow to learn how to dispute the charge in Commerce Control Center
ℹ️ Before You Begin
To dispute the chargeback, you are required to provide evidence that shows the services were provided or the transaction was run with permission.
To dispute a chargeback, you must provide evidence such as:
Refund receipt showing date, amount, and transaction ID
Any emails or texts confirming the refund or explaining the charge
Attendance records or service logs
Signed membership or service agreement
If a cardholder said they're withdrawing the dispute, attach that email/text
If you can provide any combination of the above documentation, it can help your dispute to show that the transaction was valid and that the service was delivered. It is recommended to provide as much evidence as possible to support your case.
Locating the Open Chargeback
On the Commerce Control Center website, click Sign up (if you already have an account, proceed to Sign In)
You will be prompted to enter your name and phone number, then click continue
Next, you will be asked to enter your email twice and your zip code, then click continue
Finally, you will be asked for your merchant ID, business checking account number, and tax ID/Bank Sort code, then click Create Account
If you're unsure of your merchant ID, you can contact us at ✉️ [email protected]
Once all the submitted information is verified and matches an active account, your account will be created, and you will receive your username and a temporary password via email.
Once logged in, Click on Manage in the main menu on the left, then click Disputes
You can then find open chargebacks from the last week. If you need to find chargebacks older than 1 week, you can adjust the period by changing the dates in the area at the top left of the menu, then click generate.
The report will list open invoices grouped by chargeback work type:
First Chargeback: Initial dispute made by the cardholder
Second Chargeback/Pre-Arbitration: If the card brand rejects the initial evidence, they issue a "Second Chargeback" (or "Pre-Arbitration" depending on the card network), often citing new information or a lack of compelling evidence in the first round. If you see this, you have another chance to provide stronger evidence to the Acquirer to fight this second chargeback.
Final Arbitration: If the dispute cannot be resolved between the Issuing Bank and the Acquiring Bank (even after the second round), either party can escalate the case to Arbitration with the card network (Visa, Mastercard, etc.). The card network acts as a final judge, reviewing all documentation and making a binding decision. This stage can carry significant fees for the party that ultimately loses ($25-$750+).
To view your open chargebacks, click the number that is displayed under Case Count
On this page, you can view the full details about the chargeback(s), such as:
Status
Merchant Due Date
Transaction Details
Recommendations on how to respond to the chargeback.
By clicking on View Case, you are able to review more specific information for that chargeback.
Challenging the Chargeback
After reviewing the information and gathering your evidence, you'll have three options for how to respond to the chargeback:
Refund Issued - if you have already issued a refund to the cardholder prior to the chargeback being filed
Accept - this means you are accepting the chargeback without challenging it, and the transaction amount will be returned to the cardholder
Challenge - this means you are disputing the chargeback and will submit evidence to counter it
If you select Challenge or Refund Issued, you'll be taken to a new window with the following fields:
At the top, use the dropdown to select the challenge reason that best fits your situation. If nothing matches perfectly, scroll to the bottom and choose "Other Documentation (Please Describe)" and briefly explain the situation in your own words.
Upload any documents that support your case - the more evidence the better. Examples include:
Refund receipt showing the date, amount, and transaction ID
Emails or texts confirming the refund or explaining the charge
Attendance records or service logs
Signed membership or service agreement
If the cardholder stated they are withdrawing the dispute, attach that email or text
In the notes field, write a brief, factual explanation of why the charge was valid and why the chargeback should be ruled in your favor.
Review everything and click Submit. The case will update to Pending or Submission Under Review while the chargeback team processes your response.
🔎 Check for Dispute Updates with Commerce Control Center
Once a dispute has been submitted, you can return to Commerce Control Center at any time to check its status.
Go to the CCC website and sign in with your login credentials. If you don't remember your login, use the Forgot User ID or Forgot Password links on the sign-in page.
In the left column, click View, then select Disputes.
Click the Search box under Chargebacks.
Select the date range you want to review.
Click Generate in the upper right corner.
Once the results load, review the table for your disputes.
Use the Chargeback Status column to see the current state of each dispute.
Use Chargeback Win/Lost to see the outcome of any challenges.
Use the Chargeback Amount and last four digits of the card number to match the dispute to the correct transaction in CardPointe.
Any dispute showing as Open may still be under review or available to challenge.
Click View Case to open the full details of a specific dispute.
Status definitions:
Submission Under Review - the chargeback team is actively reviewing your challenge
Challenge - your dispute response has been submitted
Outstanding - no action has been taken yet; this chargeback is still pending a response
💬 Contact Us
DaySmart will be able to help with general questions like confirming if a chargeback happened and the initial transaction it's linked to. If you need help with this information, contact us through our 💬 live chat option at the bottom right of this article, email us at:
For assistance related to the Chargeback in CardPointe, you can reach CardConnect's Chargeback Department at:
📞 (800) 281-6305.
For assistance with logging in or navigating the Commerce Control Center site, contact their support team directly:
📞 US: 800-285-3978
📞 Canada: 1-888-263-1938