Understanding Your Options:

When you receive a chargeback notification through JustiFi, you have two primary choices: accept the chargeback and absorb the loss, or dispute it by providing evidence that the transaction was legitimate. This decision can significantly impact your business financially and operationally.

What Happens When You Accept a Chargeback:

• The disputed amount is permanently removed from your account
• You pay the chargeback fee
• The case closes immediately with no further action required
• No impact on the time you spend gathering evidence
• The chargeback still counts toward your chargeback ratio

What Happens When You Dispute a Chargeback:

• You submit evidence to prove the transaction was valid
• Temporary hold on the disputed funds continues during review
• Additional time investment required to prepare and submit evidence
• Potential to recover the transaction amount if successful
• Possible additional fees if the dispute goes to arbitration

01. Cost-Benefit Analysis Framework

When Accepting Makes Financial Sense:

• Small Transaction Amounts: If the disputed amount is less than $25-50, the time cost of preparing evidence may exceed potential recovery
• Weak Evidence Position: When you lack compelling proof the transaction was legitimate
• Resource Constraints: Limited staff time to dedicate to evidence preparation

When Disputing Is Worth the Investment:

• Strong Evidence Available: Clear proof of authorization, delivery, and customer satisfaction
• Significant Transaction Value: Higher dollar amounts justify time investment
• Clear Merchant Rights: Obvious cases of friendly fraud or buyer's remorse
• Pattern Prevention: Discouraging future illegitimate disputes from same customer

02. Evidence Strength Assessment

Strong Position Indicators:

• Signed delivery receipts or tracking confirmation
• Clear customer authorization (signed agreements, recorded calls)
• Proof of product/service delivery as described
• Customer satisfaction records or positive feedback
• Clear refund/cancellation policies that were followed

Weak Position Indicators:

• Missing authorization documentation
• No proof of delivery or service completion
• Customer complaints about product quality or delivery issues
• Unclear or missing terms of service
• Processing errors or authorization problems

03. JustiFi-Specific Considerations

Chargeback Ratio Impact: Whether you accept or dispute a chargeback, it still counts toward your monthly chargeback ratio. Since JustiFi maintains a strict 1% monthly chargeback rate threshold, every chargeback matters for your account standing.

Time Constraints: JustiFi's Customer Success team processes dispute evidence within one business day of submission. However, you typically have only 7-10 business days from notification to submit evidence, making quick decision-making crucial.

04. Decision-Making Flowchart

Step 1: Assess Transaction Value:

• Under $50: Consider accepting unless evidence is readily available
• $50-$200: Evaluate evidence strength and time investment
• Over $200: Generally worth disputing unless evidence is clearly insufficient

Step 2: Evaluate Evidence Quality:

• High Quality: Comprehensive documentation proving legitimate transaction
• Medium Quality: Some evidence available but may have gaps
• Low Quality: Minimal or weak evidence supporting your position

Step 3: Consider Business Impact:

• Repeat Customer: Factor in long-term relationship value
• Pattern Recognition: Multiple disputes from same customer or similar transactions
• Operational Learning: Evidence preparation helps improve future prevention

Step 4: Make Decision:

• Dispute: High-value transactions with strong evidence
• Accept: Low-value transactions with weak evidence
• Seek Guidance: Contact your Platform's support team for borderline cases

05. Strategic Business Considerations

Long-Term Account Health: Maintaining a chargeback ratio below 0.5% keeps you in good standing with JustiFi and card networks. Consider the cumulative impact of multiple chargebacks when making individual decisions.

Customer Relationship Management: Sometimes accepting a chargeback and reaching out to resolve the underlying customer issue can preserve a valuable business relationship and prevent future disputes.

Operational Improvements - Use chargeback patterns to identify and fix business process weaknesses:

• Improve product descriptions to reduce "not as described" disputes
• Enhance delivery tracking for "not received" claims
• Clarify billing descriptors to prevent "unrecognized" chargebacks

06. Prevention vs. Response Strategy

Proactive Measures:

• Clear billing descriptors that customers recognize
• Comprehensive product descriptions and images
• Transparent return and cancellation policies
• Excellent customer service for pre-chargeback resolution

Response Optimization:

• Standardize evidence collection for different transaction types
• Maintain comprehensive transaction documentation
• Train staff on evidence quality requirements
• Develop relationships with customers to resolve disputes directly