While there are Best Practices for Mitigating Chargebacks in the Towing Industry you can employ to reduce your risk of dealing with chargebacks, there is always a chance you will have to combat a dispute at some point in your business operation.

When a dispute does arise, a strong rebuttal strategy can help tip the odds in your favor.

Responding to Chargebacks: Key Dispute Types

If a chargeback does occur, you need to gather specific documentation based on the dispute type. Here’s how to handle the most common disputes:

1. Fraud (“Unauthorized Transaction”)

   Customers may claim they didn’t authorize the transaction. To dispute this:

   • Provide proof of an EMV chip transaction or signed receipt.
   • Include a copy of the tow invoice with the customer’s signature.
   • Submit photo evidence showing the vehicle was legally towed.

2. Product Unacceptable (“Service Not as Described”)

   Since towing is a service, customers may argue they didn’t receive what they expected. Rebut this with:

   • Photos showing the vehicle’s original location and the towing process.
   • A copy of your towing authorization agreement with the property owner.
   • Documentation showing proper towing signage at the property.
   • A signed acknowledgment of service at the time of payment.

3. Credit Not Processed

   Customers may claim they never received a refund. Respond with:

   • Proof that a refund was processed (including transaction details and bank confirmations).
   • Your refund policy stating the conditions under which refunds are granted or not granted.
   • Documentation proving the customer did not request a refund within the stated timeframe.

4. General Chargeback Dispute (Customer Unhappy or Claims Charge is Invalid)

   Some customers dispute charges for unclear reasons. Protect your business by providing:

   • An itemized invoice detailing the tow and storage fees.
   • Time-stamped photos proving the vehicle was in violation.
   • A signed towing agreement from the property owner.
   • A signed receipt or payment authorization.

5. Product Not Received (“Service Not Provided”)

   If a customer claims they never received the service, respond with:

   • Evidence that the tow was completed (photos, timestamped GPS data, and tow receipt).
   • A signed release form from the customer when they retrieved their vehicle.
   • A police report or dispatch record if applicable.

Example Narratives for Chargeback Disputes

Use these templates to document your narrative: 

Cash Call Example

“On [DATE], [BUSINESS NAME] was contacted by the cardholder requesting tow services for an inoperable vehicle. The vehicle was picked up at [ADDRESS] and delivered to [ADDRESS]. Per our terms of service, payment was required prior to releasing the vehicle. The transaction was processed using our EMV card reader, with the cardholder present at the time of payment.”

Non-Consensual Tow Example

“On [DATE], [BUSINESS NAME] was contracted by [PROPERTY OWNER/MANAGER] to remove a vehicle that was parked in violation of posted signage at [LOCATION]. The property has clear towing signage indicating unauthorized vehicles will be towed. The vehicle, a [MAKE/MODEL], was towed to our impound lot at [ADDRESS]. The cardholder paid the required fees using an EMV card reader, and the receipt was provided. Attached are time-stamped photos showing the vehicle’s location, signage, and the completed tow.”

Additional Tip: When crafting your rebuttals, try to avoid using industry-specific terms like GOA and PD, as the person reviewing your dispute may not be familiar with these terms.

Final Thoughts: Strengthening Your Chargeback Rebuttals

By implementing strong payment practices, keeping thorough documentation, and responding quickly with solid evidence, towing businesses can significantly reduce chargeback losses.

Stay proactive with your chargeback prevention strategy, and when disputes do arise, respond with detailed and organized documentation to protect your business.

TowPay

At the end of the day, chargebacks are an unfortunate reality in the towing industry, but with the right tools and best practices, you can significantly reduce their impact on your business. 

TowPay is our integrated payments solution built specifically for your Towing Management System. Take advantage of key features like integrated card readers, Link-to-Pay, 3D Secure, and more to help protect your transactions and streamline payments.