What is a Dispute?

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.

Dispute Reasons

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?

  1. The payer makes a payment.
  2. Paystand receives the funds.
  3. Paystand sends the funds to the merchant.
  4. The payer disputes the payment with their banking issuer.
  5. The merchant receives an email about the dispute, and the disputed amount is deducted from the merchant’s account.
  6. The merchant sends Paystand the required evidence & documents to contest the dispute before the due date.
  7. If the merchant wins the dispute, they will send funds to the merchant's account. 
  8. 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. 

Dispute Fee

A USD 35.00 fee will be charged for every dispute, regardless of the status of the dispute.

Additional Resources

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