Chargebacks occur when a customer’s bank reverses a payment. On Pepper, chargebacks can apply to both ACH and card transactions. Pepper provides tools such as Plaid verification, in platform communication, and documentation support to help merchants reduce risk and manage disputes effectively.

ACH chargebacks are often triggered for specific return codes. The most common is R01 insufficient funds, which indicates that the customer’s bank could not complete the debit because the account balance was too low.

Pepper strongly recommends enabling Plaid as a payment method, as Plaid authenticated bank payments significantly reduce ACH chargebacks.

Card chargebacks are reversible disputes initiated by the card issuer. Unlike ACH disputes, card chargebacks can be challenged if you provide evidence within the required timeframe.

Deadlines

Dispute windows vary by card network. Visa typically has the shortest response period, which can be as brief as nine days.

If you plan to challenge a card chargeback:

In many cases, clear communication with the customer can prevent a dispute entirely. Pepper’s in app chat allows you to message customers directly, document conversations, and request payment updates.

For Example:

This communication history can be valuable supporting evidence in the event of a chargeback.

Pepper prepares formal dispute documentation using information provided by merchants. These materials may include transaction details, communication logs, proof of authorization, and any other evidence required by card networks or processors. This documentation format has contributed to successful dispute outcomes.

If you receive a chargeback or think one may be coming, reach out to the Pepper team right away. Fast action improves your chances of a successful dispute.