Disputes support

Disputes can be a challenge for any business. Whether due to fraud, misunderstandings or customer dissatisfaction, handling them efficiently is key to protecting your revenue and maintaining trust with your customers.

This will guide you through what disputes are, how to prevent them and what steps to take when they happen, so you can focus on running your business with confidence.

What do I need to know about payment disputes?

Mitigate payment disputes by understanding their impact on your business.

What is a dispute?

A dispute is when a customer challenges a transaction with their bank.

Why do customers dispute payments?

Common reasons:

Fraud
Product not received
Billing errors

How does this affect your business?

Negative impact:

Chargeback fees
Revenue loss
Reputation risk

What are the best practices for dispute management?

Efficiently handle disputes by following these best practices:

Stay organized: Keep thorough records of transactions and customer interactions
Respond promptly: Time is critical in disputes. Submit evidence within the required deadlines

Disputes FAQs

The following FAQs will answer your most common questions about disputes management and provide you with actionable tips to help protect your business.

A dispute, usually a result of a chargeback, happens when your customer questions a transaction with their bank and their bank initiates a dispute. Providing accurate and timely documentation is crucial, as it helps to lead to quicker resolution of the dispute.

Disputes can occur for many reasons, including:

Items not received
Product not as described
Duplicate transactions or billing errors
Recurring charges after cancellation
Fraudulent or unauthorized charges

Customer Files a Dispute:
The customer contacts their card issuer to dispute a charge on their account, usually citing reasons like fraud, non-receipt of goods, or incorrect charges.
Issuer Reviews the Dispute:
A dispute, usually a result of a chargeback, happens when your customer questions a transaction with their bank and their bank initiates a dispute. Providing accurate and timely documentation is crucial, as it helps to lead to quicker resolution of the dispute.
Merchant is Notified:
When a dispute is initiated by the issuer, the merchant receives notification for the dispute. The disputed amount is then debited from account pending the outcome of the dispute.
Merchant Submits Evidence:
If the merchant disagrees with the dispute and would like to challenge, supporting documentation (such as proof of delivery, proof of services rendered, etc.) must be submitted before the due date. In most cases the documentation will be passed to the issuer and the merchant will receive a provisional credit pending the final outcome of the dispute.
Issuing Bank Reviews the Case:
The issuing bank reviews the merchant's response, often along with the customer, and makes a decision. If the documentation the merchant provides properly addresses the dispute, then the dispute stops there. If the documentation does not properly address the dispute the issuer will continue the dispute process.
Final Decision:
Final decision of a dispute is based on card network dispute rules and the information provided by both the customer and the merchant. If the final decision is not in favor of the merchant, the merchant will receive a debit to their account.
Arbitration (if needed):
Arbitration is utilized when the issuer and acquirer cannot resolve the dispute. The card network will then make the final decision.

Questions	Refund	Chargeback
Who initiates it?	Your business	Your customer
Why does it happen?	Dissatisfaction Order cancellation Goodwill	Products not received Billing errors (duplicate charges) Unauthorized transactions Fraud
What is the process?	You voluntarily return the funds to your customer’s original payment method	The customer will receive a provisional credit pending the outcome of the dispute from their issuing bank
What is the resolution time?	Usually faster since you control the refund process	Can take weeks or months, depending on the dispute investigation and required documentation

Yes. If you win a dispute, we will return the disputed amount.

To determine whether a chargeback is valid, carefully review:

The reason code provided by the issuing bank (Go to the Causes and risk factors section to get a deep understanding of reason codes)
Any supporting documentation from the customer or card issuer
The customer will receive a provisional credit pending the outcome of the dispute from their issuing bank.

Chargeback fees are charges applied when a chargeback occurs. These fees can add up quickly, especially if you receive multiple chargebacks. To minimize these fees:

Focus on reducing your chargeback rate by improving customer satisfaction and monitoring for fraud
Be aware of your chargeback thresholds, as a high rate can lead to higher fees or even account termination

If you are seeing multiple chargebacks for the same reason code, it’s important to take a closer look at the issue to prevent it from happening again. Here are a few steps to help reduce chargebacks:

Review your transaction details: Ensure that product descriptions, prices, and shipping information are clear and consistent across all channels
Enhance customer service: Quickly address customer concerns and provide clear communication to resolve issues before they lead to chargebacks
Leverage Chase’s fraud prevention tools: We offer a range of fraud detection tools, including fraud alerts and account monitoring, to help identify and prevent unauthorized transactions. Discover more about our fraud prevention tools here

By implementing these strategies and using our resources, you can better manage chargebacks and protect your business.

When a Discover or American Express cardholder sees an unfamiliar transaction, they can request more information. During this retrieval request, no funds are taken from your account. You have until the due date to respond; otherwise, the request is closed. A separate dispute will be initiated if the cardholder chooses to challenge the transaction further.

Note: It is important to respond to your retrieval requests as it may result in a final dispute that you would have to resolve directly with your customer.

To properly respond to a retrieval request, you should provide:

A clear copy of the transaction receipt
Proof of customer authorization (e.g., signature, consent for recurring billing)
Any relevant order details (shipping confirmation, invoices, or email communications)

Providing accurate and timely information can help prevent a chargeback before it happens. If the information satisfies the issuer, the dispute process may end there, avoiding financial and reputational damage to your business

When a chargeback or dispute occurs, it comes with a reason code based on the reason the customer is initiating the dispute. These codes indicate why the dispute was filed and help you understand the issue. You can find them in your online banking platform and statements. You can also check resource online.

Here’s a breakdown of the most common dispute categories and their codes:

Dispute Category	Common Reason Codes	Why It Happens
Authorization Issues	Visa: 11.3 Mastercard: 08 Amex: P07 Discover: LP	Transaction processed without proper authorization Payment was declined but still attempted Charge submitted too late How to respond: Provide proof that the transaction was authorized Show refund was issued before dispute
Fraud Disputes	Visa: 10.1, 10.4 Mastercard: 37, 70 Amex: F29, F30 Discover: AA, UA01, UA02	Cardholder claims unauthorized transaction Purchase flagged as suspicious How to respond: Provide proof of authorization (CVV match, IP address, device ID) Show past transactions from same customer with no disputes
Consumer Disputes	Visa: 13.1-3, 13.6, 13.7 Mastercard: 41, 53 Amex: C14, C28, C30 Discover: RG, RM, RN2	Customer didn’t receive product/service Product/service wasn’t as described Subscription canceled but still charged Refund not processed How to respond: Provide proof of delivery or service completion Submit signed contracts or terms & conditions Show customer communications confirming the order
Processing Errors	Visa: 12.5, 12.6.1 Mastercard: 31 Amex: P05, P08, R13 Discover: DP	Duplicate charge Customer paid another way but card was still charged Incorrect transaction amount How to respond: Provide signed receipt or invoice showing correct charge Show second payment was for a separate purchase

Yes. If customers feel ignored or unsatisfied with how an issue is handled, they may skip reaching out to you altogether and go directly to their bank to dispute the charge.

Absolutely. If your business name appears differently on a customer’s statement than it does in your branding or communications, they may not recognize the charge and assume it’s fraudulent. Always use a clear, recognizable descriptor.

You can still receive a dispute even if the product was delivered. This may occur if the customer claims the product was defective, not as described, or that they didn’t authorize the purchase. That’s why proof of delivery and product description are important.

Yes. Authorization simply confirms the cardholder has enough funds and the card is valid, it doesn’t protect against disputes. If the customer claims fraud, non-receipt, or dissatisfaction, a dispute can still be filed.

Yes, transactions where the physical card isn’t present at the point-of-sale (e.g. online or over the phone) carry a higher risk of fraud and disputes.

Yes. If a customer expects a refund and doesn’t see it within a reasonable time frame, they may assume it won’t come and file a dispute instead.

Receive a Notification
- You’ll be alerted via email, SMS, or your Chase Business account when a chargeback occurs
- Notifications include the reason for the dispute and the deadline to respond
Review the Details
Log into your Chase Business Account to view:
- The reason code provided by the card issuer
- The transaction details (amount, date, customer info)
- Any available customer communication or receipts
Choose Your Response
- Accept the chargeback if you believe the dispute is valid. The funds will be refunded to the customer
- Dispute the chargeback if you have proof the transaction was legitimate.
Submit Evidence
- If you choose to dispute, you must provide supporting documents such as:
- Proof of delivery (tracking numbers, signed receipts, invoices)
- Customer communication (emails, chat transcripts, agreements)
- Refund or cancellation policies (if applicable)
- All documents must be submitted before the response deadline stated in the notification
Wait for Resolution
- Chase will review your response and forward it to the customer’s bank
- The bank will investigate and make a decision—this can take several weeks
- You will be notified of the outcome via your Chase Business account

Act quickly:

Review the dispute reason
Gather supporting evidence
Submit a well-organized response before the deadline

Invoices or receipts
Proof of delivery (tracking number, delivery confirmation)
Screenshots of product/service descriptions
A cover letter with explanation of included documentation
Bill to/Ship to information
Proof the dispute has already been resolved
Properly disclosed refund/cancellation policy and proof of acceptance

It varies by processor and card network, but you often have 8 to 24 days to respond. Missing this deadline usually results in an automatic loss.

You automatically lose the chargeback, and the funds are returned to the customer without a chance to dispute it.

The issuing bank reviews your documentation. If they find it compelling, the chargeback may be reversed. If not, the customer keeps the refund.

Yes, if a dispute has not yet been received, you can issue a refund. This approach can help maintain customer relationships and avoid additional fees. Ensure it aligns with your business policies and document the transaction for your records.

Note: Do not issue a refund after a dispute has been initiated as the customer has already been credited as a result of the dispute.

No, you can not. Once the decision has been made, it cannot be reversed.

Not necessarily. It depends on the documents provided.

While it’s impossible to eliminate chargebacks entirely, you can reduce their likelihood by:

Clearly describing your products/services on your website
Providing detailed order confirmations with customer information
Offering easy-to-understand refund and return policies
Setting up fraud detection tools to flag high-risk transactions
Communicating effectively with your customers to resolve disputes before they escalate
Waiting to bill until merchandise is shipped
Properly processing a card using CHIP technology
Obtaining proper authorization and depositing timely

It starts with clarity and consistency:

Make sure your business name is the same across all marketing materials, customer receipts, and statements
Disclose properly terms and conditions during your online checkout process
Encourage customers to use chip-enabled terminals for card transactions. It's a simple step that adds an extra layer of security
Make receipts clear and complete, including contact info, date, amount, and itemized details
Make sure your return and refund policy is clearly explained at the point of sale
Use strong fraud protection software to help protect against possible fraud
Know the rule and familiarize yourself with payment processing rules. Knowledge is power

To avoid issues down the line, follow these best practices every time you process a transaction:

Always obtain a new authorization for each payment — don’t reuse or split declined ones
Never enter authorization codes manually, and don’t adjust amounts post-authorization
Settle payments promptly to prevent confusion or reversal

Always use a chip or contactless reader and avoid manual card entry
Get a clear customer signature when required, especially if there’s a return policy involved
Never alter a receipt after a sale
For online sales, confirm the address and require the security code (CID)

Always refund to the original payment method
Avoid issuing refunds in cash or by check
If multiple transactions need refunds, process them one by one.
Make sure your policy allows for reasonable flexibility and is communicated clearly

Make sure your business name on the customer’s bank statement is clear and matches what they expect.

Display cancellation and refund terms directly on the checkout page
Send order confirmation emails that include what was purchased and how to contact you
Offer live support or help centers to catch issues early

Use fraud prevention tools (AVS, CVV checks, 3D Secure)
Require strong customer authentication
Monitor for suspicious purchase patterns

For more information about fraud, go here to visit the fraud prevention support page.

Chargebacks can increase processing costs, trigger account holds, or even lead to account termination if you exceed network thresholds.

Yes, you can set up account alerts to receive notifications when a new dispute is opened or when a response is required. these alerts can help you act quickly and avoid missing important deadlines.

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Disputes support

What do I need to know about payment disputes?

What is a dispute?

Why do customers dispute payments?

How does this affect your business?

What are the best practices for dispute management?

Disputes FAQs

What is a dispute?

Why do disputes happen?

What is the dispute lifecycle?

What is the difference between a refund and a chargeback?

Will I get my money back if I win the dispute?

How do I know if a chargeback is valid or not?

What are chargeback fees and how can they affect my business?

What if I receive multiple chargebacks with the same reason code?

What is a retrieval request?

How should I respond to a retrieval request?

Don’t see what you need?