When a chargeback hits, the label matters more than most merchants think. A fraud code triggers a different review process than a regular dispute. And if your response doesn't match what the bank expects for that specific reason code, it might not even get read all the way through.
Let's break down how banks approach fraud vs non-fraud cases, what kind of evidence holds the most weight in each, and how to adjust your response strategy based on what you're actually fighting.
First, the Basics: What's the Difference?
In card network language, "fraud" means the cardholder claims they didn't authorize the transaction. "Dispute" means they're challenging the charge for another reason, like they didn't receive the item, they're unhappy with the quality, or they already returned it and want a refund.
The fraud label puts you on the defensive. The bank is assuming the cardholder is the victim. In a dispute, they're assuming something went wrong with the purchase, but they're still open to hearing both sides.
This difference shapes everything that comes next.
What Banks Want in a Fraud Case
When the dispute is labeled as fraud (often reason codes like 10.4 or 4837), your job is to prove the transaction was valid and authorized. That doesn't just mean showing a receipt.
Key Evidence to Include:
- AVS and CVV match results
- IP address and geolocation of the buyer
- Device fingerprinting (especially if they've bought before)
- Login timestamps and account activity
- Delivery confirmation, especially with signature
- Screenshots of previous orders (if it's a returning customer)
- Customer communication logs that show consent or confirmation
You're trying to show the cardholder made the purchase themselves, or at least that you followed strong authentication steps. The more specific and technical your data is, the better. Banks won't bother with vague summaries.
What Banks Want in a Non-Fraud Dispute
Disputes labeled as "product not received," "service not as described," or "refund not processed" shift the conversation. Now it's about whether you fulfilled your end of the transaction.
Key Evidence to Include:
- Tracking info showing delivery
- Proof of service rendered, like time logs or platform usage
- Screenshots of product descriptions (to counter "not as described")
- Clear refund policies that were shown pre-purchase
- Email exchanges about delivery or support issues
- Any refund offer made before the chargeback
Tone and clarity matter here. You're not proving identity—you're showing the transaction was completed properly and the customer had a chance to resolve the issue with you before escalating.
What Happens If You Mix Them Up?
If you treat a fraud claim like a product issue, or send a delivery tracking number in a fraud case, it often works against you. The reviewer sees a mismatch between the reason code and your documents, which signals confusion or sloppiness.
Worse, some banks use automation to flag mismatches and auto-deny them. So getting this part right isn't optional.
Adjusting Your Internal Processes
Many merchants use one-size-fits-all chargeback response templates. That doesn't work anymore. At a minimum, someone on your team should read the reason code and adjust the evidence set accordingly.
It also helps to tag chargebacks as fraud or non-fraud in your internal system so you can track trends. If most of your chargebacks are coming in as fraud, you may need to revisit your checkout flow or fraud screening setup.
If they're mostly non-fraud, look at customer support. Are refunds being denied too quickly? Are shipping issues going unresolved?
Conclusion
The bank doesn't see your side unless you make it clear. And what you show them should directly respond to the type of dispute you're facing. Fraud and non-fraud cases are judged by different standards. Using the wrong playbook is a fast way to lose, even when you're right.
Start treating each chargeback like a real case file, not just a checklist. It takes more time upfront, but it saves a lot more in the long run.
FAQ: Dispute vs Fraud Cases
What happens if I submit the wrong evidence in a fraud case?
Banks may flag your case as weak or irrelevant. If you send proof of delivery instead of proof of authorization, you're answering the wrong question. That can cost you the case even if your side is valid.
Can a buyer file both fraud and non-fraud chargebacks on the same transaction?
Not on the same case, but they can escalate. For example, a customer might dispute as "item not received," lose, then later claim they never authorized the charge. That's why keeping detailed logs and timestamps is so important.
How long do I have to respond to a fraud vs non-fraud case?
Usually 7–21 days, depending on the processor and network. The deadline is the same either way, but fraud cases may move faster through review since they carry more liability for banks.
Do banks ever side with merchants in fraud cases?
Yes, especially if you can prove authentication steps were followed and it wasn't a true unauthorized charge. Strong 3DS, verified delivery, or customer history can all help you win.
How can I reduce fraud-coded chargebacks?
Use tools that catch high-risk activity before the purchase goes through. This includes address verification, device fingerprinting, and behavioral analysis. Also, communicate quickly with confused customers to prevent friendly fraud from turning into actual chargebacks.
Chargeblast Tip: Match the Evidence, Win the Case
Most merchants lose because they guess. Chargeblast makes sure you don't. Our system automatically matches your chargeback reason code with the right type of evidence and preps a clean response. No more second-guessing. Just better results.
Ready to see how Chargeblast works with your setup? Book a quick demo and find out.
