In this article, we'll delve into what exactly constitutes a dispute, how it works with Paystand, and the steps you can take to manage and resolve disputes effectively.
There are several types of reasons why the payer can dispute a charge:
- Fraudulent purchases.
- Billing errors.
- Service not rendered.
- Quality of goods or services
- Goods or Service was not delivered.
Here is an explanation of the Dispute Reason codes:
- Allocation Flow - Fraud - Card Absent Environment. This reason code indicates that the payer is claims that they did not authorize a card-not-present transaction, and therefore it must be fraudulent.
- Insufficient Funds. the payer doesn't have enough funds to cover the transaction
- Collaboration Flow - Consumer - Cancelled Merchandise/Services. The payer claims to have returned merchandise or canceled a service.
- Cardholder Dispute-Defective/Not as Described. The payer feels that the actual merchandise received or service provided differs significantly from the written or verbal description provided at the time of purchase.
- Point of Interaction Errors. The error refers to inaccuracies that happen at the time and place of the actual transaction.
- Duplicate Processing. The payer claims that a single transaction was processed more than once.
- No Cardholder Authorization. The payer has not authorized this transaction.
- Collaboration Flow - Processing Error - Duplicate Processing. The payer claims that a single transaction was processed more than once.
- Does Not Recognize. The payer doesn't recognize the transaction.
- Credit Not Processed. The merchant failed to process a credit or reversal.
How do Disputes works?
- The payer makes a payment.
- Paystand receives the funds.
- Paystand sends the funds to the merchant.
- The payer disputes the payment with their banking issuer.
The merchant receives an email about the dispute, and the disputed amount is deducted from the merchant’s account.
- The merchant sends Paystand the required evidence & documents to contest the dispute before the due date.
- If the merchant wins the dispute, they will send funds to the merchant's account.
- If the merchant loses the dispute, the payer will be refunded back.
Once the dispute is settled, the payer will be notified by their financial institution.
A USD 35.00 fee will be charged for every dispute, regardless of the status of the dispute.