A Dispute (often called a chargeback) occurs when a cardholder questions a transaction with their card issuer and asks for their money back. This can happen due to fraud, unrecognized charges, or goods not received. When a dispute is filed, the payment amount is immediately deducted from the merchant’s account along with a dispute fee until the merchant provides evidence to prove the transaction was legitimate.

FAQs:

  • How much does a Stripe dispute cost?
    Stripe typically charges a dispute fee (e.g., $15 USD), which is non-refundable even if you win the dispute, unless you have chargeback protection.
  • How do I win a dispute?
    You must submit compelling evidence via your dashboard, such as receipts, shipping tracking numbers, or logs of customer communication, before the deadline.
  • What is the difference between a dispute and a refund?
    A refund is initiated by the merchant to return money to the customer. A dispute is initiated by the customer’s bank to forcibly take the money back.

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