What is a chargeback?
When a cardholder files a dispute with their issuing bank, the bank will reverse the disputed payment in what is known as a chargeback. Funds are debited from the merchant, and the cardholder receives a temporary credit while the bank reviews the claim.
A chargeback can be filed up to 120 days after the original payment, depending on the card network and dispute reason. They can occur for several reasons, including:
Fraud, unrecognized, or unauthorized payments
Product or services not received
Product or services not as advertised or expected
Recurring billing not canceled
Refund not issued
Bonsai does not have any direct contact with your client’s bank. All communication must go through the formal chargeback process.
Chargeback notifications
If a chargeback is filed against your account, Bonsai’s Operations team will notify you by email within 2 business days. This email will include:
A summary of the chargeback
The amount, date, and invoice number of the original transaction
A secure form link to respond to the chargeback, if you wish to contest it
Be sure to check the inbox associated with your Bonsai account, as this is where all dispute notifications will be sent.
How to respond or contest a chargeback
If you believe the chargeback is not valid or was in error, you have the option to submit a response and contest the dispute. You’ll find a secure link in the chargeback notification email that allows you to:
Share a written narrative explaining your side of the situation
Upload supporting evidence, such as emails, receipts, agreements, or proof of service
Once submitted, the Bonsai Operations team will review your materials and format them into a formal response for the cardholder’s bank.
Response windows typically range from 14–60 days, depending on the card type and dispute reason. We recommend submitting your information as soon as possible to ensure the deadline is met.
What makes a strong response?
Each chargeback is unique, but strong responses typically:
Address the specific reason for the chargeback
Include dated, verifiable documentation
Show clear evidence that the product or service was delivered as agreed to the authorized cardholder
Examples of helpful evidence by reason:
Dispute reason | Compelling evidence |
Product or services not received | Tracking details, delivery confirmation, client acknowledgements |
Product or services not as advertised or expected | Screenshots of work, signed contracts demonstrating agreed scope of work, evidence of client satisfaction with delivered work |
Fraud, unrecognized, or unauthorized payments | Signed agreements, IP logs, communication history, evidence of error |
Recurring billing not canceled | Dated evidence of cancelled billing; dated evidence of cardholder usage following the dispute date |
Refund not issued | Refund policy as disclosed to client, correspondence showing service was delivered, receipt or record of refunds/credits issued |
Reaching out to the client
In some cases, it may help to reach out to the client directly. Chargebacks can be filed by mistake, for example, if the client cancels a card or doesn’t recognize the charge. If you're able to resolve the issue, the client may be able to withdraw the dispute with their bank.
If they confirm this in writing, include their response as part of your evidence when submitting your chargeback form.
What happens after you submit your response?
After your response is submitted, the cardholder’s bank will review the materials and issue a decision. Bonsai does not control the review process or the outcome.
Timeline
Most chargebacks are reviewed and resolved by the cardholder's bank within 60–90 days
You’ll be notified by email once a decision is made
Outcome
If the bank rules in your favor: the funds will be returned to your Bonsai Payments balance within 5 business days
If the bank sides with the client: the initial temporary credit becomes permanent, and additional recourse must be handled outside of the dispute process
How Bonsai can help
Our Operations team has years of experience supporting customers through the chargeback process. We're available Monday through Friday to help you:
Identify the most relevant and compelling evidence
Write a clear and concise narrative
Format and submit the final response to the bank on your behalf
We’re here to make sure you’re supported every step of the way.
Frequently asked questions
My client filed the dispute by accident, what can I do?
If the client agrees to withdraw the chargeback with their bank, you can still submit a response. Include any email or written confirmation from the client showing they acknowledge the error and intend to cancel the dispute. If they already have withdrawn the dispute, any confirmation from their bank can also be provided.
What are the timelines for chargebacks?
A chargeback can be filed up to 120 days after the original payment
You generally have 14–60 days to submit a response
Once a response is submitted, the bank typically takes 60–90 days to issue a decision
What happens if I don’t have enough money in my Bonsai Payments balance to cover the dispute?
When a chargeback occurs, the original payment is reversed. This is effectively a forced refund initiated by the client’s bank. If your Bonsai Payments balance is not sufficient to cover the chargeback, the negative balance will be debited from your linked payout method.
Are there any limits to amount of evidence I can submit?
The banks will accept evidence with the following limits:
Up to 5 MB total across all evidence files
Up to 19 pages total across all evidence files
pdf, jpg, or png format only
How do I prevent chargebacks?
The best way to prevent chargebacks is to maintain clear communication and detailed records. This includes:
Keeping written agreements or signed contracts
Saving email threads with delivery confirmations
Disclosing clear refund policies and project timelines
Responding promptly to client concerns
Providing tracking information where applicable
Retaining receipts of any refunds or credits issued during the process