Runbook: Handle a Chargeback
Account: VITAG (Vitagen Labs)
Navigation: Payment gateway dashboard (Stripe/Braintree/Authorize.Net) + Operations → Orders
When to Use This Runbook
Use when a customer has filed a dispute with their bank or credit card company, resulting in a chargeback notice from your payment processor. A chargeback is different from a refund — it is a forced reversal initiated by the customer's bank, not by VITAG.
Who handles this: Owner (chargebacks involve financial and legal judgment). Do not delegate chargeback responses to CS staff without training.
⚠️ Critical rule: Never issue a refund on an order that has an open chargeback dispute. Doing so means you lose both the refund AND the chargeback — you pay twice. If a customer calls asking for a refund and a chargeback is already pending, respond to the chargeback first.
Understanding Chargebacks
A chargeback flows through your payment processor, not UltraCart. UltraCart records the order; the dispute is managed in Stripe, Braintree, or http://Authorize.Net 's dashboard. UltraCart may show a Chargeback status on the order once notified by the processor.
Chargeback categories (reason codes) you'll encounter for supplements:
| Decision | What Happens | Next Steps |
|---|---|---|
| Won (in VITAG's favor) | Chargeback reversed; funds returned to VITAG | Note the order; no further action needed |
| Lost (in customer's favor) | Chargeback stands; funds remain with the customer | Note the order; block the customer from future orders if fraud suspected |
| No response submitted | Automatic loss | Always respond before the deadline |
Chargeback Prevention (Ongoing)
The best chargeback strategy is avoiding them:
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Recognizable billing descriptor: Ensure "VITAGEN LABS" or similar appears on bank statements, not a generic processor name. Set this in your Stripe/Braintree account settings.
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Clear subscription terms at checkout: Make auto order enrollment explicit ("You are enrolling in a monthly subscription. Cancel anytime.")
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Cancellation is easy: Hard-to-cancel subscriptions generate "Subscription Cancelled" chargebacks. Make cancellation available in the AI Agent and customer portal.
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Respond to refund requests quickly: A customer who gets a fast refund does not file a chargeback.
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Confirm subscriptions via email: Send a reminder email 3–5 days before each rebill. Customers who see it coming don't dispute it.
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Monitor the Chargeback Report: Operations → Reporting → Available Reports → Financial → Chargeback Report. Review monthly.
When to Consider Professional Chargeback Management
If chargebacks exceed 1% of monthly transactions, payment processors may add fees or close your account. If VITAG reaches that threshold, consider a chargeback management service (Chargebacks911, Midigator, etc.) that specializes in dispute responses and prevention.