A lot of merchants walk away from chargebacks feeling confused and frustrated. You did everything right. The cardholder got the product. You showed tracking, provided a signed policy, and maybe even screenshots of usage or delivery. And still, the chargeback was ruled against you.
You're not alone. Across forums and merchant help groups, threads are filled with stories like yours: clear-cut cases lost for reasons no one can explain.
Here's why that happens.
Hidden Rules from Issuing Banks
The biggest reason merchants lose seemingly winnable chargebacks is issuer subjectivity. Issuing banks (the cardholder's bank) often use internal rules that aren't disclosed publicly. These rules can overrule your airtight documentation.
Example: You send a digital product and submit server logs to prove access. However, some issuers won't accept digital delivery as valid proof, no matter how detailed it is. Their policies may require tangible delivery for a dispute to be overturned, even if Visa or Mastercard guidelines say otherwise.
The frustrating part? These issuer-side rules vary, and merchants usually find out only after losing.
Your Evidence Doesn't Match the Reason Code
Another common mistake is submitting evidence that doesn't align with the reason code.
Let's say the chargeback reason is "Fraud—Card Not Present." You send delivery confirmation and a signed receipt. That might prove the customer got the product, but it doesn't prove the cardholder authorized the transaction.
You needed to show things like:
- IP address match between the customer and the cardholder
- Device fingerprinting
- CVV/AVS match
- Proof the customer logged into an account linked to the card
If your documentation doesn't address the exact claim, even if it proves something else, the issuer may reject it.
Decisions Can Be Automated And Inaccurate
Some issuing banks use automated systems to review chargeback responses. These systems scan for certain keywords, file types, or evidence formats. If your PDF isn't formatted the right way or your screenshots don't match the expected layout, your case might be dismissed without a human even reviewing it.
Yes, really.
That's why chargeback companies often recommend structuring evidence exactly how networks expect: clear, labeled, chronological, and short. Overly long or messy files may get ignored.
Issuers Usually Side with Cardholders
Even if you have solid proof, the bias is real. Issuing banks have a financial relationship with their cardholders, not you. They're more likely to resolve disputes in favor of their own customers, especially if the cardholder is persistent or claims the merchant was uncooperative.
In borderline cases, many issuers default to protecting their user.
Friendly Fraud Is Hard to Beat
In cases of friendly fraud, you're already playing uphill. The customer may say they never received the product, deny they made the purchase, or claim it was unauthorized.
Even when your evidence disproves this, the issuer might believe the cardholder. Or they might say the evidence isn't strong enough to be sure.
Without strong fraud tools in place at the time of the transaction (like 3DS, biometric authentication, or IP verification), you're at a disadvantage.
"Win Rates" Are Misleading
Merchants often hear things like, "Our tool has a 70% win rate." But that statistic can be misleading. It usually includes:
- Pre-arbitration cases that never get reviewed
- Low-dollar disputes that get auto-accepted
- Easy cases (like service not provided) where merchants were clearly right
In practice, win rates for more complex or subjective chargebacks (like fraud claims on digital goods) are much lower. And that's where many merchants feel the sting.
Issuer Decisions Can Conflict with Network Rules
Even when Visa or Mastercard has clear guidelines, issuers don't always follow them. Some banks rule based on their internal policies, and those decisions stick, unless you push the case into arbitration, which can be expensive and risky.
So even if the card network rules say you should win, the issuer's call may be final unless you're willing to fight deeper.
Real Merchant Experience: "We Had Screenshots, Signatures, Everything... and Still Lost"
One merchant shared their experience after losing a fraud dispute for a digital course. They provided server logs, login records, IP addresses, user IDs, and timestamps. The customer had accessed the course multiple times. The issuer still ruled in the cardholder's favor.
Why?
They weren't told. Just a vague "evidence insufficient" note. No explanation. No feedback. Just a loss and a permanent revenue hit.
What Can You Do Differently?
While you can't control issuer subjectivity, here are things that help:
- Use fraud tools upfront. Things like 3D Secure, AVS, and device ID help prevent fraud claims from succeeding later.
- Tailor evidence to the reason code. Don't just throw in everything. Target the specific claim.
- Keep responses short and structured. Use headers, timestamps, and clear formatting. Label each piece of evidence.
- Challenge pre-arbs if you're confident. Escalating to arbitration is costly, but in some cases, it's worth it.
- Work with dispute management platforms. They can help format and submit your evidence in a way issuers are more likely to accept.
Final Thoughts: It's Not Just About Being Right
Losing a chargeback, even when you followed the rules, can feel personal. But often, it's not about who's right. It's about who controls the review process, what invisible rules apply, and how your evidence stacks up under biased or automated systems.
That's why merchants need more than proof. They need a strategy.
Want Fewer Chargebacks?
Chargeblast helps you prevent the chargebacks most merchants never see coming. From real-time alerts to automated responses tailored by reason code, we help you stop disputes before they spiral and fight smarter when they happen. If you've ever lost a case you knew you should've won, it's time to change your approach.
Let's fix the game, not just play it.
