Last updated: Nov 25, 2025, 9:49 AM
Chargeback notifications are part of the normal process of doing business by accepting credit and debit card payments. These processes are a way of incentivizing merchants to provide quality products, helpful customer service, and timely refunds as appropriate via the threat of a forced reversal of funds.
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The chargeback process is initiated by a cardholder after they contact their card issuer and file a substantiated complaint regarding one or more transactions on their credit card statement. This notifies their card issuer about which transactions they believe are fraudulent or erroneous and whether or not the card was in their possession or lost or stolen.
A chargeback is not generated automatically by the card issuer. Once the chargeback process is initiated for a given transaction, the issuing bank contacts Toast and places a hold on the funds related to the chargeback via a direct debit of the merchant's bank account.
Toast processes this chargeback notification, provides the information to the merchant and asks the merchant to provide documentation to dispute the chargeback. This process incurs a $15 fee for each chargeback notification processed. Each chargeback can be disputed as long as the merchant has good reason to dispute it.
For Toast customers, the evidence needed to dispute a chargeback is usually a legible signed copy of the check. In circumstances where no signed copy exists, a digital copy of the check should be provided. Toast always provides a link to the digital copy of the check with every chargeback notification. Chargebacks are centralized and managed through the . Additionally, further documentation may be required to strengthen your dispute. These include screenshots that clearly show the transaction's Payment ID and Check ID, along with a clear and concise explanation for the reason code corresponding to the chargeback. Establishing this rationale can be critical to the success of your dispute. Furthermore, please note that certain chargeback codes may incur an additional fee of up to $5, depending on the complexity of the dispute.
Note that Toast customers have 15 calendar days from the report date of the chargeback notification to dispute the chargeback. The report date is the date that Toast receives the notification from the card issuer. Ensure that the documents you submit are accurate and free of errors, as card networks' policies usually restrict resubmission. Also, remember to officially select Submit after uploading required documents in the Chargeback Challenger dashboard to log the challenge.
Consolidate required and optional evidence into a well-organized format before uploading to improve your case strength. Cross-check uploaded documentation for legibility and ensure it is relevant to the transaction in question. Use the Chargeback Challenger platform selectively by uploading only essential and strong evidence to avoid over-complication.