Disputes
Disputes occur when a customer challenges a payment on their credit card statement. A customer may challenge a payment for various reasons:
- Misunderstanding: Customer may not recognize a transaction due to unclear statement descriptors.
- Unauthorized charge: Customer may claim the transaction wasn’t authorized.
- Dissatisfaction: Customer is unhappy with the product or service received.
Dispute Lifecycle
Payment processed
A purchase or payment is processed on a cardholder’s account.
Dispute initiation
If the cardholder does not recognize the transaction or is dissatisfied, they can initiate a dispute through their bank.
Investigation
The bank reviews the dispute and requests information from you to verify the transaction’s validity. The disputed amount is deducted from your account balance, along with any associated fees.
At this stage, the dispute status will update to X days to respond in the Dashboard.
Evidence submission
Once the dispute has been posted to the merchant’s account, the merchant has 9 business days to respond with compelling evidence that supports their case.
To submit evidence through the Dashboard:
- Go to Disputes section
- Select the desired dispute
- Click on Respond to Dispute in the alert banner
- Upload compelling evidence
- Click the Submit button
Once submitted, the dispute status will update to under_review.
If evidence is not provided by the evidence due date, the dispute will be automatically accepted and the dispute status will update to deadline missed in the dashboard.
Resolution
The bank evaluates your response and supporting evidence before making a final decision. If the dispute is ruled in your favor, the funds are reversed and your account balance is restored. However, if the dispute is upheld, the funds remain debited from the account balance.
Depending on the outcome, the dispute status will update to won or lost.