What happens if a charge is disputed?
An email notification is sent to the address listed in the Payment Processing Reports/Management Tools that indicates the details of the dispute and gives directions on how to resolve the dispute.
What information does a sample dispute email notification include?
Where do I enter dispute information?
Follow these steps:
- Access the Payment Processing Report under Billing > Reports tab.
- Select the filter “Unresolved disputed transactions regardless of date”.
- Click Refresh Report.
- Click the link next to the disputed charge.
- Follow the instructions on the next screen. Entering as much evidence as possible prior to the date listed on this screen.
- Once evidence is submitted, the link next to the charge will change to “under_review” while it is being reviewed. During this time, you may re-submit evidence up to 4 times before the indicated deadline. Allow 60-75 days for the review to be completed. When the review is completed, the status will change to “won” or “lost”.
How long does the dispute process take?
Dispute resolution can take a long time, and we know that’s frustrating. During a dispute, banking entities engage in a series of formal communications that are a rigid part of the process, and we really can’t affect the timeline set in place by the banks and card networks. You can expect a dispute to be finalized approximately 60 days from the date evidence was due (not the date you provided evidence). If it has been more than 60 days since the bank’s evidence deadline, feel free to reach out to us and we’ll be happy to take a closer look!
What evidence do you suggest that I provide?
The evidence you’ll want to submit will vary depending on the specific case. Web logs, customer service emails, shipment tracking numbers, and delivery confirmation, proof of prior refunds or replacement shipments, and so on, can all be helpful. You’ll want to provide evidence appropriate to the type of dispute—we offer suggestions here. Stripe will submit any information you can provide to your customer’s credit card company, and keep you posted afterward.
Note that it is safe to assume that requests to call a contact number, click through to further information, and so on, will not be fulfilled by the institution that is evaluating the dispute. Banks will not follow external links to view your website or files you’ve uploaded elsewhere, so it’s important to include all evidence at your disposal in your initial evidence submission.
It is extremely important to provide evidence for every dispute you hope to win, even if the cardholder/customer has told you they will withdraw the dispute.
What happens when a charge is reported as a “Fraudulent Charge”?
The disputed amount and the fee are deducted from your account the day after a dispute is received. The disputed amount and fee are refunded to your bank account if the dispute is resolved in your favor. This is referred to as a chargeback.
What happens when a charge is reported as an "Unrecognized Charge"?
Basically, an “Unrecognized Charge” is an inquiry or retrieval request that asks for information about a transaction. These usually occur after a cardholder calls their issuing bank about a charge they don’t recognize or other discrepancies on their bill. The disputed amount is not deducted from your account and no fee is charged.
- If you choose to Refund the full amount, the dispute will automatically be resolved. However, if the charge is valid and you do not wish to refund, it is always recommended that you reach out to your customer first to get more information about the reason for the dispute.
- If you reach an agreement with your customer, and they agree to withdraw the dispute, it’s still important to provide evidence (even if it’s simple text evidence indicating that you’ve communicated with them and they’ve agreed to withdraw).
Once you produce sufficient evidence to defend the transaction, this type of dispute can usually be settled in your favor. Many disputes are the result of the cardholder not recognizing the transaction and providing basic info about your business and what was purchased is usually sufficient to close the case. However, if the customer refutes your evidence, or the bank considers it insufficient, the bank might escalate the inquiry into a chargeback and begins the process of returning the customer’s funds—it’s important to resolve the case while it is still in this stage.
What is the difference between an “Unrecognized Charge” and a “Fraudulent Charge”?
Sometimes, a cardholder’s bank may initiate an investigation into a complaint before a formal chargeback. These investigations are displayed as “Unrecognized” charges, but they differ from those marked as “Fraudulent” or full chargebacks in two ways: No funds are moved during an inquiry/retrieval investigation (you retain the funds), and charges are refundable during the inquiry or retrieval investigation.
The customer indicates that the dispute was a mistake. How do I get the dispute reversed?
If you’ve talked to your customer and they’ve agreed to drop the dispute, there are a couple of next steps.
First, have your customer call their bank and let them know. This is critical since the bank won’t know your customer has dropped it unless your customer tells them.
Secondly, even though the customer has already agreed to withdraw the dispute through their bank, you must still submit evidence for the dispute. Your evidence should indicate to the bank that your customer wishes to drop the dispute, and must include any email evidence you have where the customer may say that. If your customer had specific complaints that led to the dispute, be sure to address those in the evidence. Failing to provide evidence even though the customer agreed to drop the dispute could still result in you losing the dispute.
Once you’ve done those two things, we need to wait for the bank to let us know that the dispute has been closed in your favor. As soon as they do that, we will return the full amount of the charge and the associated fee to you. Do note that this process can take quite a while—it’s not unusual for us to not hear from the bank for 60-70 days after the dispute. As soon as we know that the dispute is closed in your favor we will send you an email.
My customer withdrew their dispute so I could provide a refund but the Refund button is crossed-out and unavailable. What should I do?
Often, customers don’t realize that the dispute process is not simply an “easy refund” - it penalizes merchants. Most merchants are more than happy to provide a regular refund if the customer asks them to. When a charge is disputed, and the customer is willing to withdraw the dispute so you can provide a normal refund, things can get rather complicated because the dispute process generally involves more than one banking entity handling the dispute.
Without intervention, the resolution process still takes approximately 60 days from the date evidence is due - and that’s a long wait for your customer because you can’t process a refund until the dispute is resolved in your favor! There is a way to expedite the process, but it requires very specific evidence. When a cardholder withdraws a dispute, their bank will generally do two things: re-bill their card account for the disputed amount, and provide them with a formal letter/communication (it might be a paper letter, an email, or a document in their online account) indicating that the dispute case has been closed. If you are able to obtain a copy of this letter, or clear evidence of re-billing, you may reach out to us with this information and we may be able to close the dispute before the 60-day period ends.
Even in cases where your customer withdraws, submitting evidence is vitally important. You should respond just as you would if the customer was not intending to withdraw but certainly mention their intention to do so and include any correspondence you have had with your customer that indicates they will withdraw the dispute with their bank. But do respond! Evidence submission is extremely important to the dispute process and a successful resolution in your favor.
I lost a dispute, is there anything I can do?
We know how frustrating it is to lose a dispute, and we’re sorry to say that once a dispute has been lost, that outcome is final.
Disputes are decided by the cardholder’s bank, according to the bank’s process. The steps Stripe follows to help you respond to the dispute and submit evidence are rigidly defined, but the decision made by the bank can be affected by a number of factors, such as the cardholder’s specific complaint, the strength of your evidence, and the specific details of the charge. Often the decision on who wins a dispute comes down to a judgment call by the bank. Stripe has no way to affect this judgment call beyond submitting evidence on your behalf.
For this reason, it’s always best to take measures to avoid disputes. And when facing a dispute, it often helps to work with the cardholder (where possible) to withdraw the dispute.