Chargeback Prevention and Resolution

Chargeback Prevention and Resolution Standard Operating Procedure

Title: Chargeback Prevention and Resolution Protocol

Department: Retention Team

Effective Date: 03/01/2026

Version: 1.0

Drafted By: 

1. PURPOSE

The purpose of this Standard Operating Procedure is to establish a uniform, enforceable protocol for the identification, handling, and resolution of customer interactions that present a risk of chargeback initiation. This procedure is designed to mitigate financial loss, preserve merchant processing privileges, and ensure compliance with payment processor thresholds and regulatory expectations.

2. SCOPE

This SOP shall apply to all customer-facing personnel, including but not limited to support agents, team leads, quality assurance analysts, and operations managers, across all supported communication channels, including voice, email, chat, and ticketing systems.

This SOP is binding and enforceable across all Excellent CX clients, including but not limited to the Group of Brands (GOB) portfolio, UpWellness, and any additional brands, subsidiaries, or partner entities supported under Excellent CX operations. All such brands shall be collectively and individually subject to the requirements, standards, and enforcement mechanisms outlined herein, without exception unless explicitly authorized in writing by senior management.

No brand-specific process, exception, or deviation shall supersede this SOP unless formally documented, approved, and version-controlled as an amendment to this policy.

3. DEFINITIONS

For the purposes of this SOP, a “Chargeback Threat” shall be defined as any customer statement or behavior indicating intent to dispute a transaction through a financial institution, regulatory body, or public platform in a manner that could result in financial or reputational harm to the company.

A “Trigger Event” refers to any identifiable phrase or statement made by a customer that reasonably signals escalation risk, including but not limited to financial dispute intent, regulatory escalation, or reputational threats.

4. POLICY STATEMENT

It is the policy of the organization that any interaction identified as a Chargeback Threat shall immediately transition from standard customer retention procedures to a mandatory de-escalation and resolution pathway. Under no circumstances shall retention, negotiation, or upsell efforts supersede the obligation to prevent a formal dispute once a Chargeback Threat has been identified.

Failure to comply with this policy may result in disciplinary action and may expose the organization to financial penalties, increased chargeback ratios, and potential loss of payment processing capabilities.

5. PROCEDURE

5.1 Identification of Chargeback Threat

All customer support personnel are required to actively monitor and assess customer communications for Trigger Events. A Chargeback Threat shall be deemed present when a customer explicitly or implicitly communicates intent to dispute a charge through their financial institution, indicates escalation to regulatory or legal authorities, or threatens reputational harm through public channels.

Upon recognition of any such Trigger Event, the agent shall immediately classify the interaction as a Chargeback Threat without requiring further validation or managerial approval.

5.2 Mandatory Action and Resolution

Upon classification of a Chargeback Threat, the assigned agent shall immediately cease all standard retention protocols, including but not limited to save attempts, discount offers, product education, or alternative resolutions.

The agent is required to process the customer’s requested resolution in full, which shall include either a complete refund or account cancellation, as applicable. The resolution must be executed without delay and must align precisely with the customer’s stated request.

The agent shall communicate the resolution to the customer using clear, empathetic, and non-confrontational language, explicitly confirming that the requested action has been completed and providing a reasonable timeframe for when the customer should expect to see the result reflected in their financial account.

5.3 Documentation and System Recording

Following resolution, the agent shall ensure that the interaction is fully documented within the designated support system. This documentation must include an accurate classification of the Chargeback Threat, a summary of the customer’s statements that triggered the classification, and confirmation of the action taken.

All relevant system tags must be applied, including the designation of “Chargeback Threat,” along with any applicable escalation categories such as financial dispute, regulatory escalation, or reputational complaint.

The agent shall also ensure that the final resolution note clearly states that the refund or cancellation was processed for the purpose of preventing a formal dispute.

5.4 Disposition and Audit Requirements

All Chargeback Threat interactions must be assigned the appropriate system disposition in accordance with internal escalation tracking protocols. These records shall be subject to periodic audit by Quality Assurance and Compliance teams to ensure adherence to this SOP.

Any deviations from the prescribed procedure must be documented and justified, and may be subject to corrective action.

6. ROLES AND RESPONSIBILITIES

Customer Support Agents are responsible for accurate identification of Chargeback Threats, immediate execution of required actions, and complete documentation of all relevant details.

Team Leads and Supervisors are responsible for reinforcing adherence to this SOP, providing guidance in ambiguous situations, and ensuring operational compliance across their teams.

Quality Assurance personnel are responsible for auditing interactions, evaluating compliance with this SOP, and reporting findings to management.

Operations Management is responsible for maintaining this SOP, updating procedures as required, and ensuring alignment with financial risk management strategies.

7. COMPLIANCE AND ENFORCEMENT

Strict adherence to this SOP is mandatory. Non-compliance, including failure to identify triggers, delay in processing required actions, or improper documentation, may result in disciplinary measures up to and including termination.

This SOP shall be reviewed periodically to ensure continued alignment with payment processor requirements, financial regulations, and organizational risk tolerance.

8. BUSINESS JUSTIFICATION

Chargebacks impose direct and indirect financial costs on the organization, including the loss of revenue from the original transaction and additional processing fees that may range from $20 to $100 per dispute. Excessive chargeback ratios may result in penalties, increased monitoring by payment processors, or termination of merchant accounts.

Immediate resolution of Chargeback Threats through refunds or cancellations serves to mitigate these risks, preserve operational continuity, and maintain favorable standing with financial partners.

9. RECORD RETENTION

All records associated with Chargeback Threat interactions, including transcripts, call recordings, and system notes, shall be retained in accordance with company data retention policies and applicable regulatory requirements. 

10. EFFECTIVITY

This SOP shall take effect immediately upon approval and shall remain in force until amended or superseded by a subsequent version.