Call (844) NO-DISPUTESResponse Template for "Installment/Payment Plan Dispute"
Chargeback Response
Dear Recipient,
Re: Chargeback Response - Transaction ID: Transaction ID
This letter serves as our formal response to the installment/payment plan dispute filed for the transaction dated Transaction Date in the amount of Transaction Amount.
Cardholder Information:
- Cardholder Name: Cardholder Name
- Last 4 Digits of Card: Last 4 Card Digits
- Account/Order Number: Account or Order Number
Payment Plan Details:
The cardholder entered into a Payment Plan Type on Agreement Date. The agreed terms were as follows:
- Total Purchase Amount: Total Purchase Amount
- Number of Installments: Number of Installments
- Installment Amount: Individual Installment Amount
- Payment Frequency: Payment Frequency
- First Payment Date: First Payment Date
Agreement Authorization:
The cardholder Authorization Method the payment plan terms and conditions on Authorization Date. Additional Authorization Details (Optional)
Payment History:
As of the dispute date, the cardholder had successfully completed Number of Successful Payments payment(s) totaling Total Amount Paid to Date. The disputed charge represents installment number Disputed Installment Number of Total Number of Installments.
Supporting Documentation:
We are providing the following evidence to support the validity of this transaction:
- Primary Evidence
- Secondary Evidence
- Additional Evidence Description
The cardholder was fully informed of the payment plan terms and Customer Status. All charges were processed in accordance with the agreed-upon schedule and terms. Additional Context or Explanation (Optional)
We respectfully request that this dispute be reversed as the transaction was authorized and processed according to the agreed payment plan terms.
Sincerely,
Your Name
Your Title
Company Name
Contact Phone Number (Optional)
Contact Email Address (Optional)
Payment plan disputes make up almost a quarter of all service-related chargebacks and when they hit, merchants are looking at an average loss of $2,700 per disputed installment agreement. These disputes are especially frustrating because they usually happen with customers you’ve been working with for months with laid out payment schedules that everyone seemed completely fine with when the ink was still wet on the contract. They agreed to all the terms and made a few payments without any problem and then suddenly they’re claiming that they never authorized the rest of the charges or they have problems with the payment schedule that they obviously signed off on.
Your response to these disputes can make or break your odds of recovering months’ worth of lost revenue. A well-documented response package lets you recover 67% of disputed installment amounts but rushed or poorly prepared replies usually win less than 20% of cases. And aside from the immediate financial hit, a failed response can trigger refunds across an entire payment plan and turns what started as a single dispute into thousands of dollars in losses. These disputes can also completely damage hard-won customer relationships that took months or years to build – even when the whole situation started because of a small miscommunication instead of fraud.
A structured template makes sure you present your payment authorization evidence in just the sequence that the banks want to see and prevents important documents from being missed or tossed aside altogether. Templates also help you stay steady across multiple disputes and matters because payment plan chargebacks usually come in waves whenever economic conditions get rough. Even better, a solid template lets you tell the full story of your relationship with that customer and you can start from the first agreement and trace each successful payment they made along the way – this builds a strong case instead of just throwing transaction records at the bank and hoping for the best.
This template covers all the particular documentation laws that installment disputes demand, with dedicated sections for payment schedule modifications, customer communications about upcoming charges and partial fulfillment evidence that proves that you actually delivered value throughout the entire payment period. I see merchants skip these important pieces all the time and it hurts them hard.
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