Whether you're a customer disputing a charge or a merchant dealing with a chargeback, you’re probably wondering about the chargeback time limit. How long do customers have to file, and how much time do merchants get to respond? Typically, cardholders have around 120 days to file, while merchants only have 20 to 45 days to respond—stacked against merchants, right?

That’s where Disputifier comes in. We prevent up to 99% of disputes and fight chargebacks automatically, boosting your win rate up to 70%. Try it free today and never worry about time limits again!

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The Basics of Chargebacks

A chargeback is essentially a transaction reversal initiated by the customer through their credit card processor or bank. 

The feature was put in place to protect consumers from fraudulent activity committed by both merchants and other individuals. However, it is often misused, which puts merchants in a tough position. Here’s an overview of the process from start to finish:

• Dispute Initiation: A cardholder files a complaint with their issuing bank about a specific transaction. This can be due to fraud (such as identity theft) or dissatisfaction with the service or product received. 
• Investigation by the Issuing Bank: The bank then investigates the claim by reviewing the transaction details provided by the cardholder who opened the dispute.
• Merchant Response: If the bank deems the dispute valid, it temporarily reverses the transaction. The merchant is then notified after having the funds of the sale withdrawn from their bank. The merchant can then respond with evidence supporting the legitimacy of the original transaction, such as proof of delivery or service.
• Resolution: The bank makes a decision based on the evidence provided by both parties. If the bank sides with the cardholder, the transaction is permanently reversed and the merchant is also charged a fine. If it sides with the merchant, the transaction is upheld.

Now - while the customer and the merchant are fighting very different battles, they share a common challenge: handling their side of the dispute within the allotted time limit for chargebacks. 

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The Difference Between Dispute Initiation and Response Time Limits

There is only so long a customer has to dispute a purchase they made (or did not make in the case of fraud). Similarly, the clock starts ticking for a merchant as soon as a customer initiates a dispute. 

So, let’s take a look at the typical time limit for chargeback initiation and response below before getting into some specific financial institutions. First, how long do you have to chargeback a purchase as a consumer?

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How Long Do You Have to Chargeback a Purchase as a Consumer?

So, can I dispute a charge from 2 years ago? Definitely not. While consumers have a very wide window of opportunity to initiate a dispute, the average is 120 days. 

That being said, some providers will let you dispute charges as long as 540 days ago in special circumstances. The exact time frame will vary based on factors like the reason for initiating a dispute, the financial institution you made the purchase through, and more. 

We’ll talk about these in a moment and show you the specific chargeback time limit for the most common providers. First, how long does a merchant have to respond to a chargeback on average?  

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How Long Do Merchants Have to Respond to a Chargeback?

As we mentioned earlier, merchants have a much shorter runway to get their response in with a financial institution before resolution. It tends to be somewhere between 20-45 days. 

This is why it’s so important to have a solid, seamless process in place for managing these disputes and crafting a compelling rebuttal fast. You’ll learn how our chargeback company facilitates this in just a few moments.

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How Long Do Merchants Have to Respond to a Dispute?

Merchants typically have 20 to 45 days to respond to a chargeback, depending on the payment network. Quick action is critical to avoid losing revenue and damaging relationships with payment processors

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How Long Does a Chargeback Take to Resolve Entirely?

Chargeback resolution can vary based on the complexity of the dispute, the efficiency of the payment networks and issuing banks, and whether the merchant contests the chargeback. 

A straightforward chargeback, where the merchant does not respond, might be resolved within a few weeks. Conversely, if a merchant contests the initial dispute and continues to press the issue to pre-arbitrage and then arbitration, it’s not uncommon for the process to take months.

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Factors Influencing the Chargeback Time Limit

So, why is there such a range in the chargeback time limit? Each dispute is unique with many moving parts, from the type and size of the transaction to payment network policies and merchant processor requirements. We’ll unpack these factors below to show you the role each plays in the time limit for chargebacks.

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Transaction Type and Size

High-value transactions typically warrant more scrutiny and a longer review process due to the larger sums involved. The stakes are much higher from a bank’s perspective in analyzing a $30,000 transaction compared to a $20 charge.

Similarly, the type of transaction can affect how chargebacks are handled, with different risks associated with physical goods, digital products, or services. 

Recurring transactions also have different time limits since the billing is ongoing, where chargebacks can be filed for multiple billing cycles if not addressed promptly.

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Payment Network Policies

Each payment network has its own set of policies governing chargebacks, from Visa to MasterCard, American Express to Wells Fargo. 

These policies dictate everything from the reasons a chargeback can be filed to the specific time frames for filing and responding to chargebacks. You can search the chargeback time limit for your specific payment network below.

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Merchant Processor Requirements

Payment processors may have additional guidelines that merchants need to follow which can include specific documentation requirements and procedural steps for handling disputes. Compliance with these requirements affects the speed and outcome of chargeback resolutions.

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Chargeback Time Limit for Visa, PayPal Amex, Mastercard, and More: Initiation and Response Timelines

Now, let’s get into the chargeback time limit for Chase, Wells Fargo, Amex, PayPal, and others below. We’ll cover the types of disputes for each one along with the allotted window to initiate and respond to these disputes.

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Tips on Preventing and Fighting Chargebacks as a Merchant 

Now, let’s talk about how to win a chargeback - or better yet, how to prevent chargebacks in the first place! There are a few different ways you can reduce the occurrence of disputes with your customers and set yourself up for success in fighting chargebacks that do slip through the cracks.

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Communication is Key

So many chargebacks are simply the result of a miscommunication. Start by ensuring all product descriptions are accurate and detailed. Include high-quality images and specifications to match customer expectations. It’s important to have your return and refund policies laid out clearly on your website as well.

You should also send confirmation and follow-up emails after purchases and shipments. This provides proof of the transaction and communication while enhancing customer satisfaction.

Speaking of customer service, make it easy for customers to get in touch with you in the event they have a problem. Provide multiple channels such as phone, email, and live chat. Respond to inquiries and complaints promptly and without emotion.

If your customer can’t get in touch with you, there only next step is to initiate a chargeback. Do your part as a merchant to catch issues through your own channel before a customer takes it to their bank or credit card company.

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Implement Fraud Detection

Beyond miscommunication, chargebacks are often the result of fraud. There is no getting around the fact that bad people exist who will take advantage of compromised cardholder information and place fraudulent orders. Here’s how you can catch these:

• Use AVS and CVV Checks: Implement Address Verification Service (AVS) and require the card verification value (CVV) for all transactions to reduce fraudulent chargebacks.
• Secure Payment Gateways: Employ secure payment technologies and protocols like SSL certificates and HTTPS to protect transaction data.
• Signatures and IDs: For larger transactions or when delivering goods in person, consider requiring a signature upon delivery or even a photo ID.

It’s not a bad idea to get into the habit of regularly reviewing transactions for signs of suspicious activity. Look for patterns like multiple orders from the same IP address but different cards. You can even invest in software that does all this for you to save you time and resources, like Disputifier.

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Respond Promptly and Effectively to Disputes

Despite your best prevention efforts, you will eventually come face to face with a dispute. Don’t panic or get emotional. Instead, collect yourself and begin gathering all evidence - emails with the customer, receipts, delivery confirmations, and other relevant details.

Understand the specific reason your customer is initiating a dispute by assessing the chargeback reason code - be it order not delivered, items not as described, or fraudulent use of card.

Your rebuttal should be comprehensive and professional, focused on facts rather than feelings. So many new entrepreneurs get worked up while crafting their response and it comes back to bite them in the end.

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Follow Up

Ideally, you’d win your chargeback immediately after sending over your rebuttal. This is rarely the case. 

You may then enter the pre-arbitration process in which you can provide additional insights or reiterate your stance, hoping the reviewing party will more clearly see your side of the story.

If not, you may then need to go through the arbitration process - which can be complex and long-winded, adding more costs and wasted resources to the process. This is why it’s so worth investing in a streamlined chargeback management solution that handles all this for you - like Disputifier.

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Using Disputifier to Automate Chargeback Prevention and Management

Chargebacks can be a headache, but Disputifier takes all that off your plate by automating the entire process. Our system monitors transactions in real time using Ethoca and Verifi alerts, catching issues before they escalate. This means fewer disputes, more revenue saved, and more time for you to grow your business. We prevent up to 99% of chargebacks, with fewer false positives.

If a chargeback does happen, we handle it for you—no need to worry about deadlines. We fight thousands of disputes each month, constantly refining our approach, which boosts win rates up to 70% compared to the industry’s 10%. Plus, if your win rate doesn’t increase, you don’t pay.

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Final Thoughts on the Time Limit for Chargeback Initiation and Response

Hopefully, this comprehensive guide on chargeback time limits has left you with a clear understanding of how long you have to address disputes with various card networks.

Remember, consumers generally have up to 120 days to file a chargeback while merchants only have 20-45 days to respond. Getting your rebuttal in rapidly can increase your chances of success, so don’t delay when hit with a dispute.  

Our blog has additional resources on topics like what happens if you lose a chargeback, chargeback insurance, chargeback email response templates, and more. But at this point, there’s only one thing left to do - put the stress of chargebacks in the past for good.

Take action today and fortify your business against disputes with Disputifier’s proven solutions. Peace of mind and profit protection are well within your reach!

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