There are several methods to prevent disputes from becoming chargebacks. One of them is to issue a refund before the cardholder files a dispute. Other prevention methods include, but are not limited to:
- Clear and transparent return policies
- Emails that inform customers of a recurring transaction
- Merchant descriptors (contact information included)
True fraud disputes can be prevented by following a set of best practices. This will involve tools such as pre-sale fraud screening and scoring, and early dispute notifications.