Call (844) NO-DISPUTESResponse Template for "Tip/Gratuity Dispute"
Chargeback Response
Dear Card Issuer Name,
We are responding to the chargeback dispute for transaction Transaction ID dated Transaction Date in the amount of Total Transaction Amount.
This dispute concerns a gratuity charge of Disputed Tip Amount that was Authorization Method.
Transaction Details:
- Cardholder Name: Cardholder Name
- Card Last 4 Digits: Last 4 Digits
- Base Amount: Base Purchase Amount
- Tip Amount: Tip Amount
- Total Charged: Total Amount Charged
Evidence of Authorization:
The tip was authorized by the cardholder through Evidence Type. Additional Authorization Details (Optional)
Supporting Documentation:
We are providing the following evidence:
- Primary Evidence
- Receipt Status
- Timestamp of transaction: Transaction Time
- Employee who processed transaction: Employee Name/ID
Additional Evidence (Optional)
Business Policy:
Our establishment Tip Policy Display. Policy Details (Optional)
Resolution Request:
Based on the evidence provided, we respectfully request that this chargeback be reversed as the tip was properly authorized by the cardholder. The total amount of Total Disputed Amount should be credited back to our merchant account.
Additional Comments or Circumstances (Optional)
We are confident that our documentation clearly demonstrates the validity of this transaction and the associated gratuity charge.
Sincerely,
Your Name
Your Title
Business Name
Contact Phone Number
Contact Email Address (Optional)
Tip and gratuity disputes are costing the restaurant industry over $2.5 billion each year and servers and restaurant owners alike are caught in the middle. This whole mess is so frustrating because these chargebacks show up weeks after what seemed like a normal dinner service. A customer will claim they never agreed to the 20% tip – even though they signed the receipt right there at the table. Maybe they had a few glasses of wine and forgot about it, or maybe they’re just having second thoughts about how much they spent on that anniversary dinner. Either way, restaurants wind up fighting for money that the staff legitimately earned.
Without the right paperwork and evidence, restaurants lose these disputes about 70% of the time. Repeated losses trigger review programs that can bump processing fees anywhere from 0.5% to 1.5%. That financial hit hurts. Staff lose faith when their hard-earned tips just disappear into thin air, and that stings. Restaurants with the right documentation can turn this around and win 60% of these gratuity disputes.
A template saves restaurants from scrambling around and helps them get together all the evidence before it disappears. Most POS systems only hang onto full tip entry records for about 30 to 60 days, so time matters here. Templates also help everyone on the team stay on the same page – if the general manager takes on the dispute or if the newest assistant manager works the case, everyone will know to include all the information like how the tip was authorized, who processed the transaction and the exact times when everything happened. Visa and Mastercard have different laws for what counts as valid proof for tip disputes, so your reply needs to cover all the bases.
This template covers the authorization methods that customers use now – everything from old-school signed receipts to those sleek tableside tablets where customers enter their own tip amounts. It includes sections for restaurant policies and any verbal confirmations and works for automatic gratuities on big parties or big events.
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