How Long Does a Chargeback Take?

As an e-commerce store owner, I’ve dealt with chargebacks and wasted a lot of time. You might want to know how much time you’ll spend on this process and what influences the length of the dispute process.

I’ll tell you the typical timeframe for the chargeback process for multiple payment processors, factors contributing to its duration, and potential solutions to alleviate some of your resources.

Read on to learn more.

Key Takeaways

• The dispute/chargeback process will take 75 – 120 days.
• Factors (such as arbitrating a transaction) could add several weeks to the dispute cycle.
• Submit evidence as fast as possible to make the process quicker for a business and a customer.

How Long Do Chargebacks Take?

The entire chargeback/dispute process will take 75 – 120 days, depending on the processor, card network, and inquirer.

This also depends on whether a dispute escalates to a chargeback. The dispute process is when a shopper disputes a transaction seeking a reversal. And a reversal could come in the form of a refund instead of a chargeback.

From there, the business could refund the customer within hours or days of filing the dispute. From there, it’s over in an instant. However, if the issuing bank slaps a chargeback on the business, then that’s when the process takes time.

I’ll discuss all the factors and timeframes in a moment.

There is no “definite” number of weeks or days it will take for the dispute process to complete. However, the above information is the average from what I’ve researched among different providers.

The Duration of the Chargeback Process for Different Providers & Processors

The number I mentioned doesn’t factor in that most processors and card networks have their own dispute processes. Such factors will make the process take longer.

Here are the different lengths of the chargeback and dispute process for different processors in 2024:

• Revolut: Up to 12 weeks [1].
• Mastercard: Up to 120 days (17 weeks) [2].
• PayPal: 75+ days
• Visa: Prefers to have disputes dealt with in less than a month.
• Discover: “Several weeks or months.”
• American Express (AMEX): 6 – 8 weeks.
• Stripe: 2 – 3 months.

Many processors and networks listed above just listed information like “chargebacks will usually take this amount of time.” Other than what Revolut and AMEX stated, none of the above is a concrete number of days a chargeback will take.

Everyone’s not in the United States. How long would chargebacks take elsewhere?

Let’s see:

• United Kingdom: Up to 120 days (on average) [3].
• Australia: Up to 6 months.
• Canada: 6 weeks to 6 months.
• Singapore: 5 – 12 weeks.
• New Zealand: Up to 6 months.

I couldn’t find information on the chargeback process length in South Africa. It must be as long as everyone else's.

Factors That Determine the Time It Takes for the Dispute Process

Here are various factors that potentially make the chargeback/dispute process take longer.

1. Fraud Allegations

• Disputes stemming from fraud take 45 – 60 days.
• Chargebacks from merchant errors usually resolve in 20 – 45 days.

Chargebacks involving fraud require a more thorough investigation by the card issuer.

For instance, if a customer claims their card was stolen and used for unauthorized purchases, the issuer needs to verify the claim, investigate the transaction details, and possibly involve law enforcement.

This can extend the timeframe compared to more cut-and-dry disputes, like a merchant error where the wrong item was shipped. Both parties can resolve this with a simple return.

2. Business Response Time

The seller’s promptness in responding to the chargeback notification and providing compelling evidence can influence the duration. Because the longer the business takes to provide the needed information, the longer the process drags on.

3. Cardholder Errors

Incorrect data the account holder provides, such as wrong transaction dates or amounts, can require additional communication and verification.

4. Case Complexity

Cases involving multiple parties.

Let’s say you’re a dropshipping store. In addition to the acquirer, issuer, seller, and shopper, you have the dropshipping supplier (e.g., AliExpress) and a warehouse from which they deliver their product if they fit into the equation. Then, if you used a separate payment, they’re included as well.

All these additional points of contact require more extensive communication and coordination. Thus, it’ll take much longer for the dispute case to reach a conclusion.

5. Dispute Volume

High volumes of disputes being processed by the card issuer or bank can lead to a backlog and longer wait times for resolution.

6. Arbitration

• Adds 10 – 45 days to the cycle.

Sometimes, if the dispute remains unresolved, it may be escalated to arbitration. This involves a more formal review process and can further extend the timeframe.

7. Evidence Gathering

Gathering and submitting evidence can be time-consuming for the seller and shopper. If the evidence is insufficient or inconclusive, it can lead to further delays in finishing the dispute.

8. Communication Issues

Miscommunication or lack thereof between the involved parties can slow the dispute's progress and prolong the process.

9. Bank or Issuer Policies

Internal policies and procedures of banks and card issuers can vary, impacting the time it takes to process and resolve chargebacks.

10. Second Chargeback or Pre-Arbitration

If a cardholder initiates a second chargeback after the first is resolved in favor of the merchant, the dispute process will essentially reset. Escalating a chargeback dispute to pre-arbitration will have the same effect.

Various Timeframes for Businesses & Customers

* Varies by payment processor and card network.

The time to perform each action will also vary by each card network’s reason code. For instance, Visa reason code 10.1 (EMV Liability Shift Counterfeit Fraud) allows shoppers up to 120 days to file a chargeback.

Meanwhile, code 11.3 (No Authorization) allows up to 75 days.

Then there are unique situations like Mastercard’s Good Faith Investigation, which gives consumers up to 2 years to file a chargeback if they realize later that they’re a victim of fraud.

We go into the required timeframes for different card networks in processors in separate guides:

• Discover
• Visa

When to Seek Professional Help

Chargebacks can waste time and resources that businesses should spend on growing. Hiring a chargeback analyst can be a game-changer, alleviating the burden of dispute management and allowing you to focus on your core operations.

This isn’t a promotion for chargeback analyst services (that’s not what we do). It’s a recommendation that can save you time and resources. We do have a guide going over whether they’re worth hiring, though.

What they do…

Chargeback analysts are specialists that possess in-depth knowledge of card network rules, dispute procedures, and evidence requirements.

Their expertise enables them to:

• Analyze Chargeback Data: Identify patterns and trends in your chargebacks to pinpoint root causes and implement preventive measures.
• Prepare Compelling Evidence: Gather and present your representment package (evidence) to refute chargeback claims and maximize your chances of winning disputes.
• Communicate with Involved Parties: Effectively communicate with cardholders, payment processors, and banks to resolve disputes efficiently.
• Develop Prevention Strategies: Implement proactive strategies to minimize future chargebacks and protect your revenue.

Did I convince you to consider one? Then you’ll need to think about hiring in house versus going with a freelancer.

Consider hiring a full-time chargeback analyst if: you have a high volume of chargebacks, operate in a high-risk industry, or require ongoing chargeback management and prevention strategies.

If your chargeback volume is sporadic or you need assistance with specific cases, a freelance chargeback analyst can provide expertise on a project basis. Offering a cost-effective solution.

Wrapping Up

The entire dispute process can take days if resolved via a refund or understanding between the customer and merchant. Or they can take 75 – 120 days depending on various factors.

We can’t analyze chargebacks, but we can help prevent disputes from escalating into chargebacks. Learn how our tool can save your business time and money.

Sources

• 1: Revolut. How long does the chargeback process take?
• 2: Mastercard. How can merchants dispute credit card chargebacks?
• 3: UK Finance: Chargebacks and Section 75