Automated Chargeback Representment: An AI Agent Against Friendly Fraud
Excited to announce Soap Payments Automated Chargeback Representment.
Do you have any chargebacks you have to respond to?
No more hours and late nights putting together compelling evidence against friendly fraud chargebacks.
Our AI Agent can do it for you in just a few clicks, available today.
How it works
Soap Payments Automated Chargeback Representment pulls data from our customer context graph of payments logs, device traces, and KYC and AML records + communication with customers.
We then generate representment evidence reports to help merchants fight friendly fraud chargebacks.
What is chargeback representment?
A chargeback happens when a cardholder disputes a payment with their bank and the bank pulls the money back from the merchant. Representment is the merchant's answer: a response, with evidence, showing that the payment was legitimate and should stand. If the issuer accepts the evidence, the funds go back to the merchant.
How the chargeback process works
- The cardholder disputes a payment with their card issuer.
- The issuer files a chargeback through the card network, and the amount is debited from the merchant, usually with a chargeback fee on top.
- The merchant is notified with a reason code (fraud, not received, not as described, and so on) and a deadline to respond.
- The merchant submits representment: a written case with supporting evidence.
- The issuer reviews it and decides. Some cases go further, to pre-arbitration and arbitration by the card network.
Miss the deadline, or send a weak case, and the chargeback stands.
What is friendly fraud?
Friendly fraud is a chargeback filed by the real cardholder for a purchase they did make. Sometimes it is an honest mistake: they forgot the purchase, didn't recognize the name on their statement, or a family member used the card. Sometimes it is deliberate: the customer keeps what they bought and asks the bank for the money back.
Either way, the payment was genuine, which is why friendly fraud is worth fighting, and why it comes down to evidence.
What evidence wins a friendly fraud chargeback?
A strong representment case shows that the real cardholder made the payment and got what they paid for. The evidence usually comes from several systems at once:
- Payment logs: the transaction, its authorization and any 3D Secure authentication.
- Device traces: the same device and IP address as the customer's earlier, undisputed payments.
- KYC and AML records: the identity checks the customer passed when they signed up.
- Customer communication: emails, support chats and account activity after the purchase.
Collecting all of that by hand, from different tools, for every dispute, is what takes hours. Soap already holds it in one customer context graph, so the agent can put the case together in a few clicks.
Fewer chargebacks, and less work on the ones that happen
We continue to maintain an industry leading chargeback rate under 0.3% across our portfolio with a 93% authorization rate on Cards and Digital Wallets.
Now, for the chargebacks which do occur, we remove all the manual work from our merchants.
This is the future of AI-native payments infrastructure we are building at Soap Payments.
How to prevent chargebacks in the first place
The cheapest chargeback is the one that never happens. A few habits keep disputes down:
- Authenticate card payments with 3D Secure, so eligible fraud claims shift to the issuer. Read how 3D Secure with Evervault stops a stolen card before it becomes a payment.
- Use a billing descriptor customers recognize on their statement.
- Make refunds and support easy to reach, so customers ask you before their bank.
- Verify identity at sign-up, so the account belongs to the person paying.
Frequently asked questions
What is chargeback representment?
Representment is how a merchant challenges a chargeback: it sends the card issuer evidence that the payment was legitimate, so the funds can be returned.
What is friendly fraud?
Friendly fraud is a chargeback filed by the real cardholder for a purchase they made, for example by claiming they didn't recognize it.
What evidence does Soap's agent use?
Payment logs, device traces, KYC and AML records, and communication with customers, from Soap's customer context graph.
How long do merchants have to respond to a chargeback?
The card networks set the deadline, and it is typically a few weeks from the notification. A case that misses it is lost automatically, which is one more reason to build the evidence fast.
Talk to the Soap team to see it on your own disputes.