Protect your self-care business by understanding the chargeback process and building a foundation in solid policy

The goal of any beauty business is to put the client at the center of the universe, even during checkout. Online payments and contactless options make that final touchpoint in the client experience smooth and seamless.

The rise in credit card payments has also led to not only an increase in convenience but also an increase in payment disputes and chargebacks. In fact, the number of chargebacks around the world is expected to grow 24% by 2028 — and if you’re not prepared, they could dramatically impact your ability to generate revenue.

Here, I’ll teach you how to win a credit card dispute as a merchant, including tips on how to set strong policies. You won’t be able to prevent chargebacks from happening, but you’ll have the tools and information needed to minimize risk and protect your bottom line. 

The most common reasons for chargebacks

The fine print is the foundation of any defense your beauty business has against chargebacks. 

The most common chargeback scenarios for self-care businesses result from the client not reading or understanding the fine print. They’re typically filtered into one of four categories:

• Cancellations: These are common for auto-payment programs, like annual memberships. The client misses a renewal email and forgets to cancel before the payment gets removed from their bank account.

• Merchandise or service not as described: For example, a client requests blonde hair color, but it turns out redder than the client wanted.

• Merchandise or service not received: These chargebacks are often related to appointment cancellations, like if the client misses their appointment and their card gets charged as a result of your cancellation policy. A client may also say they never received a service or product they paid for.

• Other fraud — card not present: In this case, the client claims that your business didn’t have approval to charge their card. This chargeback reason is common for no-call/no-shows or if the client cancels their appointment after the designated cutoff window.

Any policy you set must be able to cover these situations. If you don’t, you’re effectively opening yourself up to a potential flood of chargebacks, which often come with additional fees on top of your lost revenue. 

Understanding the chargeback process

If you want to maximize your chances of winning a chargeback, you must understand how to dispute a chargeback as a merchant. Here’s how it generally works:

1. First, the client will submit the chargeback through their bank or credit card provider. The bank will ask why this chargeback is taking place, and the client will select a reason from a handful of options.

2. Once the client submits the chargeback, the bank will notify you and temporarily remove the money from your account while the investigation takes place.

3. Here, you can decide to agree to the chargeback or dispute it. 

   • If you agree to the chargeback, the bank will complete the transfer of funds from your account into your client’s account, and the process will end. 

   • If you dispute the chargeback, you’ll move on to the next step.

4. The bank will need evidence from your business to investigate the dispute. Here, you’ll upload the necessary information to explain why you disagree with the chargeback. These documents should include:

   • Related policies and where they are located (such as links to your website or photos that display policies in your store). 

   • Signed policy documents the client has agreed to.

   • A rebuttal letter detailing your perspective and the policies and processes you have in place to explain why the chargeback is invalid.

5. Once the bank receives your documentation, it will begin reviewing it. This review process typically takes 15-20 days to conclude the investigation. The bank will then rule in favor of the client or your business, relinquishing the temporary hold on your funds and placing them in the appropriate account. 

7 tips on how to win a credit card dispute as a merchant

The decision on who wins a chargeback dispute is ultimately made by the bank, meaning there’s no guaranteed method for winning credit card disputes. Even so, there are steps your beauty business can take to give it the best possible chance while protecting it from future incidents.

1. Make your policies clear and accessible: Don’t just rely on the honor system for cancellations or refunds. Formalized, prominently displayed payment policies will establish boundaries that will support you in the event of a dispute. Make them available in as many places as possible, too. Be sure to:

• Print them out and display them near your register. 

• Include a policy section on your website. 

• Put pertinent policy details in your online booking widget.

• Send them out via email or text when a client makes an appointment.

These steps will help ensure that there is no question about whether a client has had an opportunity to view your policies.

2. Disclose expected results: Some beauty services take a few visits before your clients get their desired results. For example, dark hair may take multiple coloring appointments for that perfect platinum blonde look. Put this information on your website and have your staff reinforce these expectations with clients during the consultation. This process will help protect you when clients claim they didn’t receive the requested service.

3. Know your client: If you’ve been to a hotel, you know the check-in drill: Before entering your room, you must stop by the front desk and provide a credit card and an ID with a matching name on it. By taking these steps up front, the hotel reduces the chances of fraud and protects itself from any damages. 

Your beauty business should take the same steps with first-time clients, especially if they book online or over the phone. Checking IDs at the front desk and confirming that the name on that card matches the billing and appointment info they provided will give you peace of mind that your clients are who they say they are. 

4. Get signed agreements: Having policies readily available can protect you in the event of a chargeback. Saving signed docs to client profiles is a simple way to show they agreed to your policies — making your protection way stronger. Build it into your onboarding flow, keep those files handy, and you’ll have the receipts ready if a bank ever comes knocking during a chargeback.

5. Regularly train staff: There’s no one-size-fits-all way to prevent or win chargebacks, so your best defense is to flood the zone with information — and your staff can help. Keep your employees up to date on all of your policies, and instruct them to remind clients of them when necessary. 

6. Keep your policies updated: You won’t always win every chargeback dispute. However, these moments can be very instructive for your business and highlight gaps in your policies that you can update to prevent similar chargebacks in the future.

7. Submit as much information as possible: During the chargeback process, you’re effectively making a case for your business — which means you need evidence to back you up. Submit as much information to the bank as possible, such as the relevant policy documents, links, and images showing where those policies are located, client notes and interactions, signed documentation, and anything else that provides concrete evidence to defend your case. You’ll also want to write a rebuttal credit card dispute letter that ties everything together, providing the context behind how your actions fit with your disclosed and agreed-upon policies. 

Frequently asked questions

Who is most likely to file a chargeback?

There are three main categories of clients who will submit a chargeback:

• Bad actors: According to a 2025 report by MasterCard, first-party and third-party fraudulent chargebacks make up nearly half of all chargeback volume. These are people who have either stolen someone’s credit card or misrepresented their own identity when submitting payment.

• Bad clients: If your business is open long enough, chances are good you’ll eventually come across a client who simply loves to submit chargebacks. Having air-tight policies that are clearly communicated and gathering signed agreements up front will protect you from these types of chargebacks.

• People with legitimate issues: Sometimes mistakes happen, and the client feels wronged. They may think they’ve exhausted all avenues and are submitting the chargeback as a last resort. Or, they may unknowingly be committing a type of fraud known as “friendly fraud,” where they believe a chargeback is the best way to request a refund, rather than working with your business directly.

Who handles the chargeback process?

It’s a common misconception that your payment platform mediates chargeback disputes. In actuality, the client’s bank or card issuer is the entity that handles these disputes. However, if you’re a Boulevard customer, we’re more than happy to review your policies and give you tips on how to place them so you can increase your chances of winning a dispute.

What documentation should businesses have in place to protect themselves in a dispute?

If you want to increase your chances of winning a chargeback dispute, consider having clients sign the following policies (as relevant to your business) before their first appointment. Also, place them prominently in your physical location and on your website for maximum visibility.

• Cancellation Policy: This document details how much time clients have to cancel before they’re ineligible for a refund and the consequences of failing to do so.

• Financial Agreement: These are most commonly found in medspas and other beauty businesses that sell high-ticket services. These agreements detail how much money the service costs, payment frequency, consequences for failure to pay, and other financial information. 

• Consultation Form: This document collects client information before their first appointment so your team has as much data available as possible.

• Membership Agreement: If you offer paid membership programs, this document details the terms and conditions behind the payment required and services rendered.

Having these signed documents in your possession won’t necessarily prevent chargebacks from happening. But they will give you the evidence you need to protect your business, saving you time and money in the long run.