Chargebacks happen. Some are fraud, some are friendly fraud (customer doesn't recognize charge), some are legitimate complaints that bypassed support. Each requires different response. This SOP defines the dispute workflow.
Every DTC brand processing card payments. Most acute above 0.5 percent chargeback rate.
Above 1 percent chargeback rate triggers card network penalties and potentially loss of merchant account. Below that, every chargeback is recoverable revenue if you respond well.
Slack notification to ops team within minutes of chargeback filed.
Fraud, item not received, item not as described, duplicate charge, friendly fraud. Each has different response strategy.
Item not received: tracking with delivery confirmation. Item not as described: product photos + reviews + spec sheet. Fraud: AVS + CVV verification + IP location.
Late responses are automatic loss. Calendar block the deadline.
Radar provides device fingerprint, behavioral signals. Submit alongside transaction data.
Win or loss, document the reason. Patterns inform fraud detection improvements.
Above 0.5 percent triggers preventive action. Above 1 percent is emergency.
Each lost chargeback teaches you a pattern. Update detection rules to catch similar future attempts.
Record your screen while running this procedure. ReccordSOP captures every step with screenshots, then alerts you when the actual process drifts from documentation.
Try ReccordSOP free40-60 percent for legitimate disputes with good evidence. Lower for friendly fraud (customer disputes their own purchase).
Above 0.9 percent triggers Visa/Mastercard monitoring. Above 1.5 percent is account-loss risk.
Yes for fraud and item-not-received. Skip if customer has legitimate complaint you can't refute. Focus energy on winnable disputes.
I built ReccordSOP after watching too many DTC ops teams lose months to undocumented workflows. These SOPs are battle-tested with Shopify operators running $1M to $50M brands.
Last reviewed June 1, 2026