Chargeback Response: Cancelled Recurring Transaction
Merchant: [Your Business Name]
Cardholder Name: [Customer Name]
Last 4 Digits of Card: XXXX
Card Brand [Visa, Mastercard, Discover, or American Express]
Transaction Date: [Date]
Transaction Amount: [$X.XX]
Dear Card Issuing Bank Representative,
We are writing to formally dispute the chargeback filed under reason code Cancelled Recurring Transaction for the above-referenced transaction.
We respectfully assert that this transaction is valid and was authorized by the cardholder. Below is a summary of supporting evidence:
1. Summary of Dispute
Ex: This chargeback is being disputed as invalid. The cardholder agreed to a recurring service and did not cancel in accordance with the clearly disclosed cancellation policy. Therefore, the transaction is valid and properly authorized.
2. Proof of Agreement to Recurring Billing
Ex: At the time of enrollment, the cardholder agreed to the terms and conditions, which clearly outline the recurring billing structure.
Evidence Included:
Copy of signed agreement / digital acceptance
Screenshot of checkout page showing recurring terms
Confirmation email sent to cardholder
Key Terms Accepted:
Recurring charge of [$X.XX] every [billing frequency]
Agreement to cancellation policy (see Section 3)
3. Cancellation Policy Disclosure
The cancellation policy was clearly disclosed to the cardholder prior to purchase.
Policy Details:
Cancellation must be submitted via: [method – e.g., online portal/email]
Required notice: [e.g., 3 days before next billing date]
Evidence Included (examples):
Terms of Service screenshot
Booking/checkout page showing cancellation terms
Welcome/confirmation email with policy
4. Timeline of Events
Transaction Date: [Date of disputed charge]
Next Billing Date: [If applicable]
Cancellation Request Date: [Date OR “No cancellation request received”]
Findings:
[Choose ONE scenario below and edit]
Option A – No Cancellation Received:
A thorough review of our records shows no cancellation request was received through any of the accepted channels prior to the transaction date.
Option B – Late Cancellation:
The cardholder submitted a cancellation request on [date], which is after the required notice period. Per the agreed terms, the billing had already been processed and is valid.
5. Service Status / Usage (if applicable)
The service remained active during the billing period.
Evidence Included:
Account activity logs/appointment history
Proof of access or usage
6. Conclusion
The charge is valid because:
The cardholder agreed to recurring billing terms
The cancellation policy was clearly disclosed
The cardholder did not cancel in accordance with those terms
Therefore, we respectfully request that this chargeback be reversed due to compliance with Card Brand rules.
Attachment(s)
Note: It is recommended that the Rebuttal Letter be a stand alone document and that any supporting evidence be compiled into a separate single document for consideration from the reviewing bank.
Customer agreement / signed contract
Terms of Service / cancellation policy
Transaction receipt
Communication logs (if applicable)
Usage or account activity logs (if applicable)
Sincerely,
[Your Name / Team]
[Your Business Name]
[Contact Information]