What to Do When You Receive a Chargeback

Receiving a chargeback can be frustrating—but don’t worry, we’re here to help you navigate the process smoothly and protect your business.
A chargeback occurs when a customer disputes a transaction with their bank or card issuer. The funds are temporarily reversed, and you’ll be notified through your Lock Trust dashboard or email. As a merchant, it's important to act quickly and provide supporting documentation. This guide walks you through how to respond and what to expect.

What Is a Chargeback?

• A reversal of a card transaction initiated by the cardholder’s bank.
• The disputed amount is usually deducted from your account temporarily while the case is reviewed.

Common reasons for chargebacks include:

• Unauthorized or fraudulent transactions
• Dissatisfaction with a product or service
• Duplicate or incorrect charges
• Item not received

How to Respond

You’ll need to review the dispute, gather documentation, and submit a response before the deadline.

See Step-by-Step: How to Respond to a Chargeback article for detailed instructions on handling disputes through your Lock Trust dashboard

Best Practices to Prevent Chargebacks

• Use clear product descriptions and transparent refund policies
• Provide receipts and tracking for every order
• Respond to customer service inquiries quickly
• Display refund and cancellation policies prominently
• Use fraud prevention tools and verify suspicious orders