Rebutting chargebacks protects your revenue. It also helps maintain a good standing with payment processors and preserves your company’s reputation.
As you saw in the blog, Safeguard Your Towing Revenue: 8 Chargeback Prevention Tips, there are specific steps you can take to reduce your risk of chargebacks. Despite the best preparation, there is always a chance you will have to combat a chargeback in your towing business.
Strengthening Your Chargeback Rebuttals
By implementing strong payment practices, keeping thorough documentation, and responding quickly to chargebacks with solid evidence, your strong rebuttal strategy can help tip the odds in your favor.
Stay proactive with your chargeback prevention strategy. When disputes do arise, respond with detailed and organized documentation to protect your revenue and business reputation. You need to gather specific documentation based on the dispute type.
Responding to Chargebacks: Key Dispute Types
Here are the five most common disputes and the information you need to provide for that type of dispute in your rebuttal. Following these five dispute types are two example templates you can use in your rebuttal.
1. Fraud (“Unauthorized Transaction”)
Customers may claim they didn’t authorize the transaction. Rebut with:
- Proof of an EMV chip transaction or signed receipt.
- A copy of the tow invoice with the customer’s signature.
- Photo evidence showing the vehicle was legally towed.
2. Product Unacceptable (“Service Not as Described)
Towing is a service. Customers may argue they didn’t receive the service they expected. Rebut with:
- Photos showing the vehicle’s original location and the towing process.
- A copy of your towing authorization agreement with the property owner.
- Documentation showing proper towing signage at the property.
- A signed acknowledgment of service at the time of payment.
3. Credit Not Processed
Customers may claim they never received a refund. Rebut with:
- Proof that a refund was processed. Include transaction details and bank confirmations.
- Your refund policy stating the conditions under which refunds are granted or not granted.
- Documentation proving the customer did not request a refund within the stated timeframe.
4. General Chargeback Dispute (Customer Unhappy or Claims Charge is Invalid)
Some customers dispute charges for unclear reasons. Protect your business by providing:
- An itemized invoice detailing the tow and storage fees.
- Time-stamped photos proving the vehicle was in violation.
- A signed towing agreement from the property owner.
- A signed receipt or payment authorization.
5. Product Not Received (“Service Not Provided”)
If a customer claims they never received the service, rebut with:
- Evidence that the tow was completed such as photos, timestamped GPS data, and the tow receipt.
- A signed release form from the customer when they retrieved their vehicle.
- A police report or dispatch record if applicable.
Example Narratives for Chargeback Disputes
Here are two templates you can use to document a narrative portion of a rebuttal.
Cash Call Example
On [DATE], [MY BUSINESS NAME] was contacted by the cardholder requesting tow services for an inoperable vehicle. The vehicle was picked up at [FULL ADDRESS] and delivered to [FULL ADDRESS]. Per our terms of service, payment was required prior to releasing the vehicle. The transaction was processed using our EMV card reader, with the cardholder present at the time of payment. Attached are [THE KINDS OF INFORMATION YOU HAVE COLLECTED ON THIS DISPUTE]
Attach the relevant documentation you’ve collected per 1 through 5 above.
Non-Consensual Tow Example
On [DATE], [MY BUSINESS NAME] was contracted by [PROPERTY OWNER/MANAGER] to remove a vehicle that was parked in violation of posted signage at [FULL ADDRESS OF LOCATION]. The property has clear towing signage indicating unauthorized vehicles will be towed. The vehicle, a [MAKE/MODEL], was towed to our impound lot at [FULL ADDRESS]. The cardholder paid the required fees using an EMV card reader, and the receipt was provided. Attached are time-stamped photos showing the vehicle’s location, signage, and the completed tow.”
Attach the relevant documentation you’ve collected per 1 through 5 above.
Additional Rebuttal Tips
- When crafting your rebuttals, avoid using industry-specific terms like GOA and PD, as the person reviewing your dispute may not be familiar with these terms.
- Keep your rebuttal letters concise.
- Be complete. For example, use your full business name and complete addresses.
- If you need to send in rebuttal information on paper, keep paper copies or easily accessible scans as evidence.
Chargebacks are an unfortunate reality in the towing industry, but with the right tools and best practices, you can significantly reduce their impact on your business.
SIDEBAR: Did You Know? Merchant-Focused Regulation
Visa’s Compelling Evidence 3.0 (CE 3.0) is a merchant-focused regulation designed to help businesses fight friendly fraud by leveraging a customer’s prior legitimate transactions as evidence in disputes.
For Visa chargebacks with reason code 10.4 (Card Absent Fraud), merchants can submit two previous non-fraudulent transactions (within 120-365 days) that share key identifiers like email, device ID, or IP address to strengthen their case.
Autura TowPay’s back-end credit card partner streamlines this process by automatically detecting eligible transactions and pre-filling required fields, making it easier for merchants to challenge disputes effectively.
