Call (844) NO-DISPUTESResponse Template for "Pre-Authorization Hold Dispute"
Chargeback Response
Re: Pre-Authorization Hold Dispute - Transaction Reference Number
Dear Recipient Dispute Resolution Team,
We are responding to the pre-authorization hold dispute for cardholder Cardholder Name regarding the transaction dated Transaction Date in the amount of Hold Amount.
Transaction Details:
- Authorization Code: Authorization Code
- Authorization Date/Time: Authorization DateTime
- Hold Release Date: Hold Release Date
- Merchant Category: Business Type
Authorization Validity:
The pre-authorization hold was placed in accordance with Card Network regulations and our clearly disclosed policies. The cardholder Authorization Method for the transaction and authorized the hold amount.
Hold Justification:
The pre-authorization hold of Hold Amount was necessary to Hold Purpose. This amount was calculated based on Hold Calculation Basis.
Customer Disclosure:
The cardholder was informed of the pre-authorization hold policy through:
- Primary Disclosure Method
- Secondary Disclosure Method
Hold Release:
The pre-authorization hold was Release Status on Hold Release Date. The final settled amount was Final Settlement Amount, which Settlement Comparison.
Supporting Documentation:
We are providing the following evidence:
- Authorization approval response showing the hold was approved
- Agreement Type showing customer acknowledgment
- System logs showing hold placement and release dates
- Our published pre-authorization hold policy
Additional Evidence Description (Optional)
Conclusion:
The pre-authorization hold was placed legitimately with proper cardholder authorization and in compliance with all applicable regulations. The hold was for a reasonable amount based on potential charges and was released appropriately. We respectfully request that this dispute be resolved in our favor.
Additional Comments or Explanations (Optional) Sincerely,
Your Name
Your Title
Company Name
Contact Phone Number
Contact Email Address
Pre-authorization hold disputes become troublesome for hotels and rental car businesses once summer travel kicks into high gear. Customers see a pending charge on their credit card that’s way bigger than what they expected to pay and they want answers.
About 40% of these disputes happen because customers don’t know what a pre-authorization hold is or why they need it. The most frustrating part is that merchants spending around $125 just in administrative costs for each dispute that they have to fight – it’s when they’ve followed all the laws correctly.
How you respond to these disputes determines if you keep your money or watch it disappear. A rushed or incomplete response almost guarantees that you’ll lose and it means that you’ll have to refund those holds that were protecting your business from actual problems like property damage, no-shows or unpaid incidentals. The money you lose is bad enough. But if you have too many of these disputes, the card networks start watching every transaction that you process. But merchants who take the time to write replies that explain their hold policies and show the right customer information can win around 70% of their pre-authorization disputes.
A response template helps keep you on track with all the laws that Visa, Mastercard and the other networks expect to see in pre-authorization dispute cases. The template walks you through every bit of paperwork you need – proof of how you told customers, the technical authorization data and the evidence that the hold amount was fair and basic. Templates also help keep your whole team steady and it means that every response will include the facts that matter like your exact hold calculation formula and the timeline for release of the funds – these are the exact details that dispute reviewers always check for.
It works because pre-authorization disputes are very different from fraud cases. The customer actually authorized the transaction – they just didn’t understand what they were agreeing to when it came to the standard industry hold practices.