Getting hit with a dispute for the first time can knock the wind out of you. One minute you're celebrating a sale. Next, your payment processor is freezing the funds and asking for evidence.
It's a confusing process, especially when you're new. But you're not alone, and the panic doesn't have to spiral. Here's what experienced sellers wish they knew the first time they got a chargeback.
You're Not Being Accused of Fraud (Necessarily)
One of the biggest shocks is the language. Words like "fraud," "unauthorized transaction," or "merchant error" sound like you've done something criminal. But many chargebacks happen because the cardholder simply doesn't recognize the charge, forgot about the purchase, or didn't get what they expected.
This is frustrating, yes, but it doesn't always mean the buyer is lying or malicious. Many disputes come down to poor communication or vague billing details. That's why the first step is to understand what type of chargeback it is. Look up the chargeback reason code. It tells you why the dispute was filed and what kind of evidence you'll need.
Don't Panic. Do Pause.
Your instinct might be to fire off a heated response or issue a refund to make it disappear. Slow down.
If you refund a transaction after a chargeback has already been filed, that refund doesn't cancel the dispute. You could lose the original payment and the refund amount, plus a dispute fee on top of it.
Instead, check your deadline to respond. Most processors give you 7 to 21 days to submit evidence. That's your window. Use it.
What to Do First
Here's what veteran merchants suggest when you get your first dispute:
- Read the notification carefully. It should tell you the reason code, amount, and response deadline.
- Find the order. Match the transaction ID to your records. Look for customer communication, shipping info, and confirmation emails.
- Check the customer's history. Is this a repeat buyer? Any previous support tickets?
- Gather your evidence. Include tracking details, product descriptions, refund policies, delivery confirmations, or anything that shows the buyer received what they paid for.
One seller on a forum put it bluntly: "If you didn't write it down, it didn't happen." So going forward, make documentation part of your routine.
Mistakes to Avoid
Plenty of sellers have learned things the hard way. Here's what they say not to do:
- Don't ignore the dispute or assume it'll sort itself out. It won't.
- Don't insult the customer in your evidence or support tickets. Keep it neutral and factual.
- Don't miss the deadline. Late responses are automatically lost.
- Don't use screenshots alone. Download and submit the original files when possible (PDFs, CSVs, tracking links).
And most importantly: don't assume the payment processor is on your side. They're neutral. They follow the card network rules, not merchant loyalty.
You're Allowed to Ask for Help
If you're overwhelmed, ask for help. Many processors have dispute response teams, and there are tools that help automate the evidence collection. There are also chargeback services, forums, and online groups where merchants share advice, templates, and tough lessons.
One seller shared that they didn't even know you could fight a chargeback until another merchant told them how. "I just assumed the money was gone," they wrote. "Now I win most of them because I actually respond the right way."
Don't Let It Shake You Too Much
Chargebacks can feel personal, especially if you're running a small business. But the reality is, even the best merchants get them. Sometimes it's friendly fraud. Sometimes it's a stolen card. Sometimes it's just bad timing.
What matters is how you handle it. Stay calm. Respond with clean, factual evidence. Learn what you can. And next time, you'll be ready.
What a First-Time Seller Had to Say
"I remember seeing that first dispute email, and my stomach dropped. I had no clue what I was supposed to do. I spent hours reading forums, thinking my account was going to get shut down.
Someone told me to focus on the reason code and only submit what the bank wants to see. Not to overexplain. I followed their advice, kept my response short and factual, and won. I've only had a couple more since then, but I treat each one like a process now. No panic, just steps."
A Smarter Way to Deal with Disputes from the Start
If you're tired of chasing down evidence every time a dispute hits, Chargeblast can help you get ahead of the problem. From real-time alerts to automated response tools, we help you fight fraud and stay out of the red. Merchants use Chargeblast to reduce chargebacks, streamline evidence, and stop revenue leaks before they start.
Ready to take disputes off your plate?
