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, as 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.
If you need help locating transaction details or payment records in Carpay, contact Carpay Support.
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 missing documentation
It’s important to understand that 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.