How to Win Chargebacks: A Guide for Bicycle Retailers

For bicycle retailers, chargebacks are more than an annoyance. They can eat away at your revenue, take time to resolve, and damage your merchant account if they happen too often. But here’s the reality: Merchants can and do win chargeback disputes. The key is knowing how to respond, what evidence to provide, and how to prepare before a chargeback ever reaches your door.

Act Fast When Notified

As soon as you are notified of a chargeback, begin gathering your documents and follow the response timeline outlined in the chargeback notice. Missing this deadline means you automatically lose. There are no second chances and no excuses for being late. Include the assigned Case Number on every page you send in with your supporting evidence.

Build a Strong Defense File

Your goal is to prove that the transaction was valid and that you fulfilled your end of the agreement. The most successful disputes include:

• A copy of the sales receipt, invoice, or signed contract
• Delivery confirmation with tracking numbers or a signed pickup form
• Email or text communications with the customer
• Your stated return or cancellation policy, included with the receipt
• Photos of the product or completed service, when possible

Think of this as your evidence packet. The clearer and more complete it is, the stronger your chances of winning.

Document Everything at the Point of Sale

The best way to prepare for disputes is long before they happen. Make sure every sale has clear records attached. This includes signed work orders for service jobs, delivery acknowledgments for shipped bicycles and parts, and receipts that outline your return policy. Excellent recordkeeping is your strongest weapon.

Use Clear and Accurate Descriptors

A large percentage of disputes occur simply because customers do not recognize a charge on their statement. Work with your credit card processor to ensure your business name and phone number appear correctly. When customers can easily identify your store, they are less likely to escalate a misunderstanding into a formal dispute. If you use a DBA instead of your legal business name, make sure the DBA is included in your Descriptor.

Communicate With Your Customer

Sometimes, the fastest way to resolve a chargeback is to talk to the customer directly. If a customer is unhappy, offer solutions such as a refund, store credit, or rescheduled service. This not only helps avoid the chargeback altogether but can also be used as evidence that you acted in good faith. Always include a record of these communications in your defense file.

Train Your Team

Employees should know the importance of capturing signatures, entering accurate information, and spotting potential fraud. Training your staff to follow protocols ensures that every transaction is handled in a way that protects your business if a dispute arises.

Never Ignore a Chargeback

Even if you decide not to fight a specific dispute, always respond. Ignoring chargebacks increases your ratio and puts your merchant account at risk. Too many ignored disputes can result in higher processing fees or even account termination.

The Bottom Line: You Can Win

It is a common misconception that merchants cannot win against chargebacks. Well-prepared retailers often succeed. The merchants who do best are those who prepare in advance, act quickly, and provide clear evidence when disputes arise.

For bicycle retailers, the takeaway is clear: preparation, quick action, and thorough documentation are the keys to victory. Treat every transaction as if it could be disputed, and you will always be ready to defend your sales.

For more information about disputing a chargeback, contact NBDA’s dedicated Relationship Manager: jim.luff@risewithaurora.com or call 661-706-7955