A dispute occurs when a cardholder (guest) raises a complaint with their bank or credit card company about a payment made to you.

In general, when the bank receives the complaint, the bank creates a formal dispute, reverses the payment, notifies you, and charges a fee of $15.00 for the dispute.

This article lists down the stages of a dispute and the reasons for a dispute.

Stages of a Dispute

The stages of a dispute depend on the type of dispute raised by a guest. 

  1. Request for Information: After a guest raises a dispute with the bank or the card issuing authority, you will be asked for more information. You must provide this information within a stipulated time period. At this stage, you are not liable to pay any fees or charges. However, if you do not respond in a timely manner within the stipulated time, you may be liable for a chargeback, and money may be withdrawn from your account.
    Note: Requesting for information is as per the bank’s discretion. Some banks may directly create a chargeback instead of requesting for information.
    Suggested Action: Provide as much information as possible. 
  2. Chargeback:  A chargeback is the removal of the disputed funds from your account. For example, if Jennifer purchases a product worth $100.00 and if she later disputes the transaction, the $100.00 credited to your account will be withdrawn either by the bank or by the card issuing authority. After a dispute is raised by a guest, banks may notify you of a chargeback or directly levy a chargeback.
  3. Information Supplied: The company receives the evidence yo submit and thoroughly cross-checks the details. 
  4. Chargeback Reversed: In case the bank or the issuing authority accepts your evidence, you will receive a full refund of the chargeback. 

Reasons for Disputes

The reasons for disputes can be classified as follows: 

  • Fraudulent online transaction: This scenario occurs when a guest denies booking an appointment online or purchasing a product online. This may happen due to online identity theft. 
  • Fraudulent in-store transaction: This scenario occurs when a guest claims that her card was stolen and the in-store transaction was not authorized by her. 
  • Duplicate Charge/Double Charge: This scenario occurs when the guest claims she was charged twice for a single transaction. 
  • Services not received/Merchandise not given: This scenario occurs when a guest claims that she was billed for services she did not take or billed for products she did not purchase. 
  • Canceled transaction: This scenario occurs when the guest’s bank states that the transaction was canceled as the guest returned the products or canceled the services. This is also true for recurring payments - when the recurring payment is processed after the guest cancels the transaction.
  • Defective products: This scenario occurs when the guests receive a defective product or dispute the quality of the products. 
  • Counterfeit merchandise: This scenario occurs when products are identified as counterfeit by the guests. 
  • Misrepresentation: This scenario occurs when the terms and conditions of the sale were misrepresented. 
  • General: This scenario occurs for any other situation apart from the above scenarios.
  • Request for Information: This scenario occurs when a guest suspects that she was charged falsely and requests for further information. 

If you have received a dispute notification, this is what you need to do:

  1. Check the dispute reasons and submit the appropriate evidence
  2. View the timelines for defending a chargeback.
  3. Review the disputed transaction using the Zenoti Payments Disputes report.
  4. Respond to the dispute by either accepting the dispute or by submitting evidence to prove that the payment was valid.
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