What Is Representment and How Does It Work?

Representment is how you fight back. Send the right proof, on time, and the chargeback can be undone.

Network
Dispute stages
Published

What is representment?

Representment is how a merchant fights a chargeback. You send the sale back to the card issuer with proof that the chargeback was wrong. The name comes from the idea that you are presenting the transaction again.

A chargeback is a statement credit the cardholder receives from their card issuer after a dispute. A refund comes from the merchant, while a chargeback comes from the card issuer. If a merchant disagrees with a cardholder's dispute, the merchant may appeal the chargeback. That appeal is the representment process.

Each network has its own name for the step. Mastercard calls it second presentment. Visa calls it a Dispute Response. American Express simply asks you to send supporting documents after a Chargeback.

When to use representment

Use representment when you have proof that the claim in the reason code is false. An issuer may start a chargeback when the transaction meets the requirements of a chargeback reason code. Your job is to show that it did not.

Do not fight every case. Visa says accepting a dispute that cannot be fixed may save the time and cost of fighting it. If the cardholder is right, or you have no proof, accept it and move on.

If you are not sure what the notice says, start with how to read a chargeback notice.

How to respond to a chargeback

First, read the reason code. Second, gather proof that answers that exact claim. Third, send it through your processor before the deadline.

A good reply explains the documents, addresses the specific dispute reason and describes the steps taken to resolve it. The best way for a merchant to respond to a dispute is online through its Merchant Account.

Documents needed for representment

Your supporting documents should include a copy of the charge record or credit record. Add whatever else fits the code:

  • Proof of delivery or service, for claims the goods never arrived.
  • The signed receipt or order form, for claims the sale never happened.
  • Your refund policy, shown at checkout, for refund disputes.
  • Emails or chat logs that show the cardholder knew about the charge.

Visa dispute evidence must be easy to read and in English, or come with an English translation. Mastercard decides whether supporting documents give enough detail for everyone to understand the dispute or rebuttal.

Time limits for representment

Each network sets its own limits, and they come from that network's rules.

For American Express, the merchant's 20 days to respond start once American Express contacts it with an Inquiry or a Chargeback. For Visa, the merchant's time to respond is the time on the acquirer's request, and it may vary by acquirer. Mastercard generally gives the acquirer 45 calendar days from the chargeback to send a second presentment.

A late answer can cost you the case. Visa's rules say a side that does not respond in time closes the dispute cycle and is responsible for the amount.

Representment by card network

Visa

A merchant can accept a Visa dispute, or reject it by sending supporting documents to its card processor. In processing error and consumer disputes, the acquirer may send a Dispute Response unless the merchant accepted through Rapid Dispute Resolution. An acquirer may respond only once to the original Visa dispute.

Mastercard

The acquirer may second present when the chargeback did not meet the reason code rules, or it can answer the original dispute. It can also second present when the issuer charged back the same transaction more than once, or sent the chargeback after its time limit. If a cardholder got both a chargeback credit and a merchant refund, the acquirer must second present showing the refund.

American Express

After a Chargeback, the merchant can send supporting documents that might reverse it. A Chargeback is undone if the merchant's reply addresses the dispute successfully and on time. American Express asks for the Inquiry number and Merchant number on each page a merchant mails or faxes.

Common mistakes to avoid

  • Sending proof that does not match the reason code.
  • Missing the deadline, which loses the case by default.
  • Skipping the charge record, which should be in every reply.
  • For Mastercard, leaving an earlier refund out of the second presentment. Mastercard expects a refund to be shown in the second presentment, not in a later case filing.

Next steps: pre-arbitration and arbitration

If the issuer still disagrees after your representment, the case can continue. After the chargeback cycles, the issuer may continue the dispute through pre-arbitration and arbitration case filing.

For all other Mastercard disputes, an issuer that wants to continue must first file a pre-arbitration case. The acquirer may reject it with a rebuttal and any relevant documents. If the two sides still cannot agree, the network decides who is liable. See pre-arbitration and chargeback arbitration for those stages.

For what each network does with your reply, read what happens after you answer a chargeback. For more on the dispute process, see chargeback disputes.

Sources