Credit Not Processed Chargebacks: Refund Evidence & Win Rates

Credit not processed disputes occur when a cardholder claims a promised refund was never issued. Success depends on refund timing documentation and clear refund policies. These carry medium freeze risk when patterns emerge.

Refund Processing Risk

Multiple “credit not processed” disputes signal slow refund processing or unclear policies, triggering Stripe monitoring even if refunds were eventually issued.

What “Credit Not Processed” Means

This dispute occurs when:

• A cardholder claims they were promised a refund that never appeared
• The customer returned a product but wasn’t credited
• A partial refund was issued when a full refund was expected
• Refund timing exceeded customer expectations or policy promises

Key distinction: The customer isn’t disputing the original charge—they’re disputing the missing credit.

Common Triggers

• Slow refund processing (taking 10+ days when policy says 5-7 days)
• Unclear refund policies (vague timelines, hidden conditions)
• No refund confirmation email sent
• Partial refunds without clear explanation
• Return received but refund not processed
• Customer disputes before refund posts to their account

How Banks Evaluate These Claims

Issuers look for refund documentation and policy compliance. Their decision process:

1. Refund status: Was a refund actually processed?
2. Timing: When was refund promised vs. when was it issued?
3. Policy: What does your refund policy state?
4. Communication: Was customer notified of refund status?

Default position: Banks side with cardholders if refund timing is unclear or refund wasn’t processed as promised.

Win Likelihood: Medium (45-65%)

Win probability: Medium

Your odds depend on refund documentation:

Evidence That Wins

✅ Refund already processed with transaction ID and date
✅ Refund issued before dispute filed
✅ Clear refund policy stating processing timeframes
✅ Refund confirmation email sent to customer
✅ Return tracking showing item not yet received
✅ Customer communication acknowledging refund timing

Evidence That Rarely Works

❌ “Refund is processing” without completion proof
❌ No refund issued or only partial refund without explanation
❌ Refund policy buried in terms without disclosure
❌ No confirmation email sent
❌ Refund delayed beyond stated policy timeframe
❌ Vague promises without documented policy

Freeze Risk Assessment: Medium

Freeze risk: Medium

Why credit not processed disputes are moderately dangerous:

• Pattern recognition: 5+ refund disputes signals processing issues
• Customer experience: High rates indicate poor refund handling
• Preventable nature: Stripe views these as fixable operational issues
• Combined impact: Adds to overall dispute rate

Critical thresholds:

• 3-5 disputes in 30 days: Monitoring begins
• 10+ disputes in 60 days: Reserve or hold possible
• Dispute rate above 0.75%: Account freeze risk escalates

Prevention: Fix Refund Processing

Refund Policy Clarity

1. Clear timeframes: State exact refund processing days (e.g., “5-7 business days”)
2. Display at checkout: Show refund policy before purchase
3. Return conditions: Clear explanation of what qualifies for refund
4. Partial refund rules: Explain restocking fees or partial credit scenarios
5. Bank posting time: Explain that banks may take additional 3-5 days

Refund Processing Speed

• Automated refunds: Process refunds immediately upon return receipt
• Same-day processing: Issue refunds within 24 hours of approval
• Proactive communication: Email customer when refund is initiated
• Status tracking: Provide refund status in customer portal
• Escalation path: Clear process for refund inquiries

Communication Best Practices

• Immediate confirmation: Send refund confirmation email when processed
• Include timeline: “Refund will appear in 5-7 business days”
• Provide transaction ID: Reference number for customer to track
• Follow-up: Email when refund should have posted
• Proactive support: Reach out if refund is delayed

Clear Verdict: When to Fight vs. Refund

Fight Only If You Have:

✅ Refund already processed with transaction ID and date
✅ Refund issued before dispute was filed
✅ Clear policy stating current timeframe is within limits
✅ Refund confirmation email sent to customer
✅ Return not yet received (for product returns)

Refund Immediately If:

❌ Refund was promised but not yet processed
❌ Refund delayed beyond stated policy timeframe
❌ No refund confirmation sent
❌ Customer has valid claim for refund
❌ Already elevated dispute rate (greater than 0.75%)

Strategic refund: If refund was legitimately owed, process it immediately and accept the dispute to avoid fees.

Response Timeline

You have 7-21 days to respond with evidence.

Action plan:

1. Day 1: Check refund status and transaction records
2. Day 1-2: Review refund policy and customer communication
3. Day 2-3: Verify refund confirmation email delivery
4. Day 3-5: Build evidence package with refund proof
5. Day 5-7: Submit via Stripe Dashboard

What to Submit If Fighting

Your evidence package should include:

1. Refund transaction record: ID, date, amount
2. Refund confirmation email: Proof customer was notified
3. Refund policy: Clear statement of processing timeframes
4. Timeline: Showing refund was within policy limits
5. Return tracking: If waiting for product return
6. Customer communication: Any discussions about refund

Format: PDF with refund transaction highlighted. Make it obvious the refund was processed.

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Decision Framework

1. Check refund status: Was it actually processed?
2. Review timing: Within policy timeframe?
3. Verify communication: Was customer notified?
4. Assess policy clarity: Is your refund policy clear?
5. Act fast: Fight with proof of refund, issue refund if legitimately owed

Assess Your Dispute Risk (30 seconds)

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Related guides: Subscription Canceled • When NOT to Fight • Should I Fight This Dispute? • Refunded But Still Charged Fee