Handling Chargebacks

How to respond to a credit card chargeback, including required timelines and documentation for disputing a transaction

May 12, 2026

Overview

When a credit card chargeback is filed, the issuing bank requires documentation to determine whether the original charge was valid. Responding quickly and thoroughly is critical — chargebacks are time-sensitive, and incomplete responses are often automatically declined.

Responding promptly and submitting clear, organized documentation gives your dealership the best chance of a successful outcome.

What to Do When You Receive a Chargeback

1. Act Quickly

Chargebacks have strict deadlines set by the issuing bank. Make sure you submit your response before the deadline listed in the chargeback notice. Late responses are typically rejected without review.

2. Gather Supporting Documentation

The strength of your response depends on the quality and completeness of your evidence. Provide clear, organized documentation that shows the payment was authorized and valid.

3. Submit Your Chargeback Response

Follow your payment processor’s instructions to formally dispute the chargeback and upload all supporting documents.

Step-by-Step: Locating Transaction Details for a Chargeback

Below are the steps required to locate the transaction details needed to process and dispute a chargeback. Please follow each step carefully to ensure all necessary information is gathered efficiently.

Step 1: Access the Run Merchant Portal

Log into the Run Merchant Portal. This portal contains the chargeback details and is where the dispute will be submitted.

Locate the following information:

• Navigate to the Chargeback page.
• Click on the Case Number to open the chargeback details.
• Note the transaction date and the last four digits of the card used for the transaction.

Step 2: Locate the Transaction in CardPointe

• Log into the CardPointe Portal.
• Navigate to Reporting and select the Transactions tab.
• Filter the transactions using the transaction date identified in the Run Merchant Portal.
• In the search bar, enter the last four digits of the card used.
• Locate the Transaction Reference Number associated with the payment. This number is required to locate the payment in Carpay.

Step 3: Search for the Payment in Carpay

• Log in to Carpay and navigate to the Recent Payments page.
• Under the Approved Payments tab, enter the transaction date.
• Use the search bar to enter the Transaction Reference Number obtained from CardPointe.
• Verify that the transaction details match and locate the customer account associated with the payment.

Tip: You can also search by the last four digits of the card. On the Recent Payments page under the Approved Payments tab, enter the last four digits in the search bar to find associated transactions.

Gather all supporting documentation needed for the dispute, including:

• Payment receipts
• Signed agreements (if applicable)
• Customer communications or supporting notes

Step 4: Upload Documentation to Complete the Dispute

• Return to the Run Merchant Portal.
• Upload all collected documentation to complete the chargeback dispute process.

Note: Please ensure all steps are completed accurately to avoid delays in processing the dispute.

Documents to Include in Your Chargeback Response

Include as many of the following documents as possible, when applicable:

• Customer-signed credit card authorization form or customer-signed AutoPay authorization form
• Carpay Terms & Conditions
• Bill of Sale
• Sales contract
• Repossession documentation, if applicable (showing when the repossession occurred)
• Communication records between you and the customer related to payments (texts, emails, notes)
• Payment method documentation (transaction details from Carpay)
• Signed payment receipts for any in-dealership payments
• Previous payment history for the card involved in the dispute

Providing multiple forms of evidence helps demonstrate that the charge was authorized and properly processed.

Common Reasons Chargebacks Are Upheld

Even when a payment is valid, chargebacks may still be upheld by the issuing bank — especially in fraud-related cases. Chargebacks are commonly upheld when:

• The cardholder claims the transaction was fraudulent
• The cardholder does not recognize the charge
• The issuing bank determines there is not enough evidence to override the cardholder’s claim
• Authorization cannot be clearly tied to the cardholder
• The response is submitted late or is missing documentation

Important: Card brands and issuing banks typically favor the cardholder, particularly in fraud disputes. As a result, chargebacks involving fraud claims often have a low likelihood of being overturned, even when documentation is provided. This is an industry-wide risk of accepting card payments and is not unique to Carpay.

Prevention Starts Before the Payment

The most effective way to handle chargebacks is to reduce the chance of them happening in the first place. While not all disputes can be prevented, strong payment practices can significantly lower risk. To help reduce future chargebacks:

• Use Approved Payer Names to limit who is authorized to make payments

• Obtain clear payment authorization before processing a charge

• Send payment receipts immediately after each transaction

• Encourage customers to initiate payments themselves through the Carpay web portal or mobile app.

• Customer-initiated payments provide additional transaction context and help reduce fraud risk compared to manually entered payments.

• Confirm the payment amount and method with the customer before submitting

These steps are especially important for reducing fraud-related chargebacks, which are the most difficult type of dispute to win.

Best Practices for Chargeback Responses

• Submit all relevant documentation at once rather than piecemeal
• Label files clearly so reviewers can easily understand them
• Include documentation that shows customer authorization and payment intent
• Keep copies of all records for future reference

Important Notes

• Chargeback outcomes are determined by the issuing bank, not Carpay.
• A chargeback response does not guarantee a favorable outcome.
• Even legitimate transactions can sometimes be lost due to cardholder-favored rules.
• Strong documentation significantly improves your chances, but outcomes may vary.

Need Help?

If you need assistance locating transaction details or payment documentation in Carpay, contact Carpay Support. For questions about dispute submission or timelines, follow guidance from your payment processor.