📝 Overview
Payment disputes occur when a customer tells their bank that a charge should be returned to them. This can happen if a customer doesn't recognize a charge, believes they were charged incorrectly, or feels they should be refunded. While disputes are not common, they're a normal part of accepting credit card payments.
Once a customer files a dispute, you'll receive an email notification and have a window of time to submit evidence to defend the charge. Understanding how disputes work and taking proactive steps to prevent them can significantly reduce their frequency.
💡 Preventing Disputes
Although there's no way to completely eliminate the possibility of a customer disputing a charge, you can implement measures to reduce the likelihood that customers will see any charge as illegitimate.
Communicate Constantly
Maintain consistent communication with customers to set clear expectations about charges
Use confirmation emails, receipts, and scheduling confirmations to ensure customers recognize transactions
Clearly communicate cancellation and refund policies upfront to reduce confusion
Reply Quickly
Establish a precedent of reliable response times
Encourage customers to reach out to you directly rather than contacting their bank about concerns
Respond promptly to customer inquiries about charges or billing issues
Be Accessible
Make your contact information easy to find on your website and in customer communications
Encourage customers to try to resolve issues with you directly before escalating to their bank
Provide multiple contact methods (phone, email, chat, etc.) when possible
🛠️ Managing Disputes
Learn how to access disputes and submit evidence to defend charges.
All dispute information comes from your payment processing partner, Stripe. When a dispute is filed, you'll receive an email notification that links to an evidence submission form.
How to Access Order Disputes
Navigate to Financials in your provider portal
Click into Order Disputes. You'll see two tabs: Open and Resolved
💡 If you've submitted evidence for a dispute, please wait 24 hours to see the dashboard refresh with updates from Stripe.
Open Disputes Tab
The Open tab shows disputes currently in progress. Each dispute displays:
Order # — The order number being disputed (clickable to view full order details)
Amount — The amount being disputed
Reason — Why the customer created the dispute
Customer Name — The customer who filed the dispute (clickable to view customer profile)
Dispute Date — When the dispute was filed
Resolves In — A dynamic countdown showing days remaining to submit evidence
Status — Current dispute status (examples: "Needs Response," "Under Review"). Statuses are controlled by Stripe and may take up to 24 hours to update
Three Dot Menu — Use this to submit evidence for the dispute
⚠️ The three-dot menu disappears once a dispute moves to "Under Review" status. Submit evidence before this happens.
Resolved Disputes Tab
The Resolved tab shows disputes that have been completed. Each resolved dispute displays:
Order # — The order number that was disputed (clickable to view full order details)
Amount — The disputed amount
Reason — Why the customer created the dispute
Customer Name — The customer who filed the dispute (clickable to view customer profile)
Dispute Date — When the dispute was filed
Resolves On — When the dispute was resolved
Status — Whether you won or lost the dispute
Submitting Dispute Evidence
When you receive a dispute notification email, it will include a link to an evidence submission form. You can also submit evidence directly from the Open tab in Order Disputes using the three-dot menu.
What counts as dispute evidence: Evidence should be appropriate to the reason for the dispute and may include:
Customer communications (emails, chat logs, messages)
Receipts and invoices
Duplicate charge documentation
Refund and cancellation policies
Service documentation and delivery proof
Credit vouchers
Terms and conditions disclosures
Government orders or other official documentation
What happens if you don't submit evidence: If no evidence is submitted before the deadline, you will automatically lose the dispute.
📊 Understanding Dispute Outcomes
Learn what happens when disputes are resolved and what the results mean.
Winning a Dispute
If your evidence is accepted by the customer's bank, the dispute status will show Won.
Funds that were held during the dispute process are returned to you
No additional fees are incurred
You can view your dispute status on your Order Disputes page under the Resolved tab.
Losing a Dispute
If the customer's bank does not accept your evidence, the dispute status will show Lost.
The disputed amount is returned to the customer's bank or card
You will incur a $15 fee for the lost dispute
The decision is final and cannot be appealed (all determinations are made by the customer's bank according to their own criteria)
You can view your dispute status on your Order Disputes page under the Resolved tab.
Refunding Disputed Charges
⛔️ Important: Once a customer files a dispute, you cannot refund the charge until the dispute is resolved or removed.
If you see an error message stating "Charge [ID] has been charged back; cannot issue a refund," it means the dispute has been resolved with a chargeback—the funds are frozen and cannot be refunded.
A chargeback is the formal return of funds to a debit or credit card after a customer disputes a transaction. This is controlled by the customer's bank, not by you or the payment processor.
❓ Frequently Asked Questions
Find answers to common questions about disputes and dispute management.
Why can customers dispute legitimate charges?
Click the arrow to view the answer
Click the arrow to view the answer
Every credit card payment—regardless of the system used, whether online or in-person—can be disputed. This is a standard right provided by credit card companies and banks. It's not specific to your software or payment processor; it's a feature of the credit card system itself.
The best defense is to take steps to ensure your customers always expect charges and don't view them as illegitimate, which is why prevention through clear communication is so important.
What is dispute evidence?
Click the arrow to view the answer
Click the arrow to view the answer
Dispute evidence is documentation you submit to support your position that the charge was legitimate. The evidence should be appropriate to the specific reason for the dispute.
Examples of effective evidence include:
Email confirmations or messages with the customer about the service or product
Receipt or invoice showing the charge
Documentation that the service was provided or product was delivered
Your published cancellation or refund policy
Terms and conditions the customer agreed to
Records of customer communication or complaints about the charge
Can I fight a dispute?
Click the arrow to view the answer
Click the arrow to view the answer
Yes. You can submit evidence to defend the charge and have it reviewed by the customer's bank. However, the most effective way to resolve a dispute is often to discuss it directly with the customer.
In many cases, customers may not have recognized the charge or may have forgotten about it. They may be happy to accept a refund from you directly rather than wait months for a dispute process controlled by the bank.
If the dispute was a mistake, the customer can contact their bank or card company and ask to withdraw the dispute.
What's the difference between a dispute and a chargeback?
Click the arrow to view the answer
Click the arrow to view the answer
Dispute: The initial claim filed by a customer with their bank that a charge should be returned
Chargeback: The formal return of funds after the bank makes a final decision on the dispute
All chargebacks start as disputes, but not all disputes result in chargebacks. If you provide strong evidence, the bank may rule in your favor before a chargeback occurs.
How long does a dispute take to resolve?
Click the arrow to view the answer
Click the arrow to view the answer
The timeline depends on the customer's bank and the complexity of the dispute. You'll see a "Resolves In" countdown in the Open tab showing how many days remain to submit evidence.
Once evidence is submitted, the bank will review and make a determination. This process is controlled entirely by the bank and can take weeks or months. You can track the status in the Resolved tab once the dispute is complete.