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Get a clear, step-by-step look at how dispute works Stripe, including tips to manage chargebacks, respond to disputes, and protect your business revenue.
That sinking feeling when you see the email notification: "A payment dispute has been created." It’s a moment every business owner dreads. Your first thoughts might be a mix of frustration and confusion. What went wrong? Will I lose this money? How much time will this take to fix? Before you get overwhelmed, take a breath. A dispute isn't a verdict; it's the start of a formal process, and you have a chance to tell your side of the story. Understanding how dispute works stripe is the first step to taking control of the situation. This guide will walk you through the entire journey, from the initial claim to the final resolution, giving you the clear, actionable steps you need to respond with confidence.
A Stripe payment dispute is what happens when a customer sees a charge on their bank statement they don’t agree with and contacts their bank to question it. Instead of reaching out to you for a refund, they go directly to their card issuer. This kicks off a formal process where the bank investigates the transaction. Think of it as a customer-initiated inquiry that temporarily puts the payment on hold until the issue is resolved. For high-volume businesses, managing these disputes efficiently is key to maintaining healthy cash flow and accurate financial records. Understanding the process is the first step to handling them effectively.
Customers file disputes for a handful of common reasons. Sometimes, it’s a simple case of not recognizing the charge on their statement—maybe your billing descriptor wasn't clear. Other times, the issue is with the product or service itself; perhaps they claim the item never arrived, was defective, or wasn't as described. Fraud is another major driver, where a customer’s card was used without their permission. It’s also common for disputes to arise from recurring subscriptions that a customer thought they had canceled. Essentially, a dispute, also called a chargeback, is the customer’s way of formally questioning a payment with their bank.
You’ll often hear the terms "dispute" and "chargeback" used together, and for good reason—they’re closely related. Stripe uses the term "dispute" to describe the entire process, from the moment a customer questions a charge to the final resolution. A "chargeback" is a specific action within that process: the forcible reversal of funds from your account back to the customer. So, while every chargeback is part of a dispute, the term "dispute" covers the whole journey. For simplicity, we'll stick with Stripe's language and call it a dispute, but know that the terms are often used interchangeably.
When a dispute is filed, the financial impact is immediate. Stripe automatically withdraws the full disputed amount from your account balance and holds it until a decision is made. On top of that, you’re hit with a non-refundable dispute fee. This fee varies depending on your country, so it’s a good idea to check Stripe’s pricing page for the exact amount. If you lose the dispute, you lose both the original payment and the fee. This is why having a solid system for revenue recognition and tracking is so important—disputes can quickly complicate your financials if you aren't prepared for them.
Getting a dispute notification can be stressful, but understanding the process makes it much more manageable. When a customer disputes a charge, it kicks off a formal procedure with the cardholder's bank, and Stripe acts as the mediator. The process is standardized to ensure fairness, but it requires you to be prompt and thorough. Let’s walk through what happens from the moment a dispute is filed to the final decision, so you know exactly what to expect and how to prepare.
The moment a customer contacts their bank to question a charge, the dispute process begins. You won't be left in the dark; Stripe will immediately send a notification to your email and your Stripe Dashboard. At the same time, the bank withdraws the disputed amount, plus a separate dispute fee, directly from your Stripe account balance. This happens automatically, so don't be alarmed when you see the debit. The notification will include the customer’s reason for the dispute, which is your starting point for building a response.
When a dispute is initiated, the customer's bank immediately reverses the payment. Think of it as a temporary refund. Stripe deducts the original transaction amount and a dispute fee from your account and holds these funds while the case is reviewed. This is a standard industry practice to protect the cardholder until a decision is made. Your goal is to provide enough compelling evidence to prove the charge was legitimate, which will reverse the reversal and return the funds to your account.
To win a dispute, you need to provide clear and convincing evidence that the charge was valid. This isn't the time to cut corners. Your response should directly address the customer's claim, whether it's about a product not being received or a charge being unrecognized. It's critical to submit your proof even if the customer has contacted you and promised to withdraw the dispute. The formal process must be completed through the bank, and submitting evidence is the only way to ensure the funds are returned to you.
Patience is key here, as the dispute process isn't quick. The entire timeline can take two to three months to resolve. Customers typically have up to 120 days after the original charge to file a dispute. Once you're notified, you'll have a window of about 7 to 21 days to submit your evidence. After you’ve submitted your response, the customer's bank can take another 60 to 75 days to review everything and make a final decision. Keeping track of these deadlines in your Stripe Dashboard is essential.
Sometimes, you can see a dispute coming. Stripe provides Early Fraud Warnings (EFWs), which are alerts from Visa and Mastercard when a cardholder reports a charge as fraudulent. An EFW is your chance to proactively issue a refund and avoid a formal dispute and its associated fee. Ignoring these warnings is risky; data shows that if you don't act, a significant percentage of EFWs will turn into official fraud disputes. Paying attention to these alerts can save you both time and money.
When that dispute notification lands in your inbox, it’s easy to feel a mix of frustration and anxiety. But take a deep breath. Winning a dispute isn't about luck; it's about preparation and presenting a clear, logical case. Building a strong response is your opportunity to tell your side of the story, backed by solid proof. The key is to be organized, professional, and quick. Think of it as assembling a file that leaves no room for doubt about the legitimacy of the charge.
This is where having your financial house in order really pays off. When your transaction data is clean and accessible, you can pull together the necessary evidence in minutes, not hours. Companies that use automated revenue recognition often find this process much smoother because the records of every transaction, from initial purchase to fulfillment, are already neatly organized. Your goal is to make it as easy as possible for the card issuer to understand the situation and rule in your favor. A well-structured response shows that you’re a credible and diligent business owner.
When you respond to a dispute, you’re essentially building a case file. Your job is to provide compelling evidence that proves the charge was valid. According to Stripe, "You can provide text and images to explain your side of the story." Start by gathering all customer communications, like emails or support chats, that show a positive interaction or confirm their understanding of the purchase.
Next, pull together proof of service or delivery. This could be a shipping confirmation with a tracking number, a signed delivery receipt, or server logs showing the customer accessed a digital product. Also include copies of your terms of service, refund policy, and any other agreements the customer accepted at checkout. The more documentation you have, the stronger your case will be.
Submitting a pile of random documents won't do you any favors. You need to tailor your evidence to the specific reason for the dispute. Every dispute comes with a reason code, like "Fraudulent" or "Product Not Received." As Stripe’s documentation notes, "Understanding reason codes helps you provide the right defense."
For a "Fraudulent" claim, you'll want to provide evidence that links the cardholder to the purchase, such as an AVS (Address Verification System) match, a CVV confirmation, or an IP address that matches their location. If the reason is "Product Not Received," your most powerful evidence is proof of delivery. By directly addressing the reason code, you show the bank you understand the claim and have specific proof to refute it.
Once you’ve gathered and organized your evidence, submitting it is straightforward. Stripe makes it clear that "You have the option to challenge the dispute by submitting evidence via the Dashboard or API." For most businesses, the Stripe Dashboard is the easiest method. Simply find the disputed payment, click "Submit Evidence," and upload your files. Write a clear, concise summary that explains what each piece of evidence proves.
For businesses with a higher volume of transactions, using the API to submit evidence can be more efficient. This allows you to programmatically handle disputes, which is a huge time-saver. Having seamless integrations with your other tools can make this process even smoother, ensuring all your data flows correctly when you need it most.
This is one of the most important parts of the dispute process: you’re on the clock. According to Stripe, "You typically have 7-21 days to send your proof to the bank after a dispute starts." If you miss this deadline, you automatically lose the dispute and the funds are returned to the customer, no questions asked. There are no extensions.
After you submit your evidence, the ball is in the card issuer’s court. The bank then "usually takes 60-75 days to decide who wins." Mark these deadlines on your calendar or set up alerts. Acting promptly shows that you take the process seriously and gives you the best possible chance of winning.
To have any chance of winning, you must "send strong proof to the bank before the deadline." A common mistake is submitting a disorganized or incomplete response. Make sure your evidence is clearly labeled and directly addresses the dispute reason. Another pitfall is ignoring an inquiry, which is an early warning from the bank. Stripe warns, "If you get an inquiry, always respond... If you don't, it will likely turn into a formal dispute that you will lose."
Avoid writing an emotional or lengthy response. Stick to the facts and present them professionally. Keep your summary brief and to the point, guiding the reviewer through your evidence. For more tips on managing your financial operations, check out the insights on the HubiFi blog.
Dealing with a dispute is stressful enough without the added confusion of fees. Understanding how these costs work is the first step to protecting your bottom line. Let's break down Stripe's fee structure, the impact of currency conversions, and the strategic decisions you can make to minimize financial loss. Having clear financial data makes this process much easier, and you can explore more strategies in the HubiFi Blog.
When a customer files a dispute, you'll see an immediate financial impact. Stripe automatically deducts the full disputed amount from your account, plus a separate dispute fee. This fee isn't a penalty from Stripe; it's passed on from the card network, like Visa or Mastercard, to cover the administrative cost of handling the case. Knowing this fee is standard helps you accurately calculate the total potential loss for each dispute. You can learn more directly from Stripe's support team about their process.
If you sell internationally, currency fluctuations add another layer of complexity. The amount disputed might differ from your original charge because the exchange rate can change between the transaction and dispute dates. For example, if the customer's currency strengthens against yours, the disputed amount could be higher than what you initially received. This detail can lead to unexpected losses, so it's crucial to understand how disputes work when dealing with multiple currencies. Keeping clean financial data helps you track these discrepancies.
The dispute fee isn't always a lost cause. If you challenge the dispute with strong evidence and win, Stripe refunds the fee to your account. This is a key incentive to fight fraudulent or unfair claims. Winning not only returns the original transaction amount but also covers the administrative cost of the fight. It reinforces the importance of keeping meticulous records and building a compelling case every time. For more specifics, Stripe offers a helpful dispute fees FAQ that covers different scenarios.
Knowing when to refund versus when to fight is a critical business decision. If a customer contacts you with a valid issue before filing a dispute, offering a prompt refund is often the smartest move. This avoids the dispute process entirely, saving you the fee and the hassle. However, once a dispute is officially filed, the rules change. Even if the customer agrees to withdraw it, you must still submit evidence to the bank to win the case. A customer's promise isn't enough to reverse the process, so always follow through with your response.
Fighting disputes can feel like a manual, time-consuming chore, especially when you’re dealing with a high volume of transactions. You have to dig through records, piece together evidence, and write a compelling response, all while racing against a deadline. Doing this for every single dispute is not a scalable strategy. It pulls your team away from focusing on what really matters: growing the business. The good news is that you don’t have to handle it all on your own. Building a smart toolkit of software and processes can transform your dispute management from a reactive scramble into a proactive, efficient system.
The right tools help you automate repetitive tasks, gather evidence more effectively, and gain valuable insights into why disputes are happening in the first place. This isn't just about winning more chargebacks; it's about creating a system that protects your revenue and gives you a clearer picture of your financial health. By leveraging technology, you can reduce the risk of human error, ensure you never miss a deadline, and make data-driven decisions to prevent future disputes. Think of it as building an operational backbone that supports your financial stability and allows you to handle payment issues with confidence. For more ideas on streamlining your financial operations, check out the HubiFi Blog.
Before you even look at third-party software, it’s smart to get familiar with the tools Stripe already provides. Stripe has several built-in features designed to stop disputes before they even start. For example, Stripe Radar uses machine learning to detect and block fraudulent payments in real time. Beyond that, Stripe participates in early warning programs with card networks, such as Verifi and Ethoca. These programs send you an alert when a customer has an issue with a charge, giving you a chance to resolve it directly by issuing a refund. This helps you avoid a formal dispute and the associated fees, protecting your payment processing history.
If you find yourself writing the same type of dispute response over and over, it’s time to bring in automation. Chargeback management software is a lifesaver for businesses that handle a steady stream of disputes. These platforms provide pre-built templates that you can customize with your business information and the specifics of each case. They can automatically pull transaction data, customer communications, and shipping information to populate your response. This not only saves an incredible amount of time but also ensures your evidence is consistent and professional. By automating the tedious parts of the process, your team can focus on the more complex cases that require a human touch.
You can’t fix what you don’t measure. Simply fighting disputes one by one isn’t a long-term strategy. To truly get ahead, you need to understand the story your data is telling. The best dispute management tools come with analytics dashboards that track key metrics like your dispute rate, your win-loss ratio, and the most common reasons for chargebacks. Seeing this data laid out clearly helps you spot patterns. Are most of your disputes tied to a specific product? A misleading subscription policy? By identifying the root cause, you can make strategic changes to your business to prevent those disputes from happening again. Seeing your data clearly is the first step to building a more resilient revenue stream.
Your Stripe account is just one piece of your business ecosystem. To build the strongest possible dispute response, you need evidence from all your systems: your CRM, your accounting software, your shipping platform, and your customer support desk. This is where integrations become so powerful. When your tools are connected, you can pull a complete history of a customer’s interaction with your business in seconds. Imagine automatically attaching a support ticket conversation from your helpdesk or shipping confirmation from your logistics partner to your dispute evidence. A fully integrated system eliminates data silos and gives you a 360-degree view of every transaction, making your evidence more compelling and your process more efficient.
While software is critical, don’t forget about the human element. One of the most effective tools for preventing disputes is a responsive and helpful customer support team. Many chargebacks happen simply because a customer couldn’t easily get in touch with the business to resolve an issue. By making your contact information easy to find and responding to inquiries quickly, you can solve problems before a customer feels the need to contact their bank. Combining this human-centric approach with technical safeguards like Address Verification System (AVS) and CVV checks creates multiple layers of protection. Ultimately, a blend of great technology and excellent customer service is your best defense against both friendly and fraudulent disputes.
The best way to handle a dispute is to stop it from ever happening. While you can’t prevent every single chargeback, especially those resulting from true fraud, you can significantly reduce the number of disputes that arise from customer confusion or dissatisfaction. A proactive approach not only saves you from dispute fees and potential revenue loss but also helps build stronger, more trusting relationships with your customers. This isn't just about avoiding penalties; it's about creating a smoother, more transparent experience that encourages repeat business.
Think of it as setting your business—and your customers—up for success from the very first interaction. By focusing on clarity, communication, and transparent policies, you can address potential issues long before they escalate into formal disputes. These preventative measures are some of the most effective tools in your arsenal for protecting your revenue and maintaining a healthy payment processing history. Let’s walk through the key strategies you can implement right away to build a solid foundation against unnecessary chargebacks.
Have you ever checked your credit card statement and seen a charge from a company you didn’t recognize? It’s a common reason customers initiate disputes. Your billing descriptor—the text that appears on a customer’s bank statement—should be instantly recognizable. Instead of a generic company code, use your business name or website URL. If you sell different products, you can even customize descriptors for specific purchases. Getting this right is a simple but powerful step. Familiarizing yourself with the Stripe dispute process can help you understand how small details like a clear descriptor can protect your revenue and prevent unnecessary chargebacks.
Misunderstandings about a product or service are another major source of disputes. Ensure your product descriptions, images, and terms of service are crystal clear and accurate. Set realistic expectations about what the customer will receive, including details on shipping times, features, and any limitations. This transparency should extend to your receipts and order confirmations. Providing a detailed breakdown of the purchase helps customers recall the transaction and confirms they received what they paid for. Including a transaction and dispute summary with clear product details can often stop a dispute in its tracks by reminding the customer of their purchase.
Great customer service is your first line of defense. Make it incredibly easy for customers to contact you with questions or concerns. A responsive, helpful, and understanding support team can resolve issues before a customer even considers filing a dispute. Display your contact information prominently on your website, receipts, and confirmation emails. When a customer reaches out, respond quickly and with empathy. A positive support experience can turn a potentially negative situation into a loyal customer. A compassionate team can help resolve customer issues and prevent Stripe chargebacks by addressing problems directly.
A clear, fair, and easily accessible refund policy builds trust and gives customers a clear path to resolution if they’re unhappy. Sometimes, it’s more cost-effective to offer a refund than to fight a dispute, which comes with non-refundable fees even if you win. If you give a customer a full refund before they file a dispute, they can’t dispute the charge later. This proactive approach can save you time, money, and stress. Review Stripe’s dispute fees FAQ to better understand the financial implications and decide when a refund is the smarter business decision.
Meticulous record-keeping is non-negotiable. For every transaction, you should store comprehensive records, including customer communications, shipping confirmations, delivery receipts, and proof of service. This information is vital if you need to challenge a dispute, but it also serves a preventative purpose. By analyzing your transaction data, you can identify patterns and trends that might lead to disputes. For instance, chargeback management software uses advanced analytics to spot these trends. At HubiFi, we help businesses achieve this level of visibility by ensuring their financial data is accurate and accessible, making it easier to make strategic decisions and prevent future issues.
The waiting is over, and the cardholder's bank has made a decision. Whether you won or lost, the outcome has a direct impact on your finances and your merchant account. Let's walk through what happens next and how you can move forward.
A win is a huge relief. It means the customer's bank sided with you, validating the evidence you submitted. When you win a dispute, Stripe returns the disputed amount to your account. Even better, according to Stripe's dispute fees FAQ, the associated dispute fee is also refunded. This outcome restores your funds and reinforces your credibility as a trustworthy merchant. It’s the best-case scenario, proving that your clear records and compelling evidence paid off. Think of it as confirmation that your processes are solid and your documentation is on point, which is a win in itself for your operations.
Losing a dispute can be frustrating and costly. When the decision doesn't go your way, the disputed amount is permanently deducted from your account balance, and you won't get the dispute fee back. But the financial hit isn't the only consequence. Stripe’s documentation on how disputes work explains that each loss contributes to your overall dispute rate with the card network. If this rate gets too high, you could face penalties or even be placed in a monitoring program, which can jeopardize your ability to process payments. This is why it's so important to fight winnable disputes and learn from every loss.
Sometimes, the outcome isn't a simple win or loss. A dispute can end in a partial resolution, which can be confusing if you aren't prepared. This happens when the amount returned or kept is different from the original transaction total. Why? It could be due to fluctuations in currency exchange rates between the time of the charge and the dispute resolution. A customer might also only dispute one item from a larger order. It's important to review the final resolution details carefully to understand the exact financial impact on your account and reconcile your records accurately.
This is a tough one to hear, but it’s critical to know: once a dispute is lost, the decision is final. According to Stripe, you cannot appeal a lost dispute through their platform. The card issuer's decision is the end of the line for that specific case. This finality really underscores the importance of putting your best foot forward in your initial response. You only get one shot to present your evidence, so make it count. Instead of focusing on an appeal that isn't possible, your energy is better spent analyzing what went wrong and strengthening your processes to prevent the next dispute.
Regardless of the outcome, every dispute is a learning opportunity. Once a case is closed, take time to analyze why it happened in the first place. Was it a misunderstanding over your return policy? A confusing billing descriptor? Or a genuine customer service issue? As fraud prevention experts at Kount suggest, reviewing the root cause is key to preventing future occurrences. Use this insight to refine your product descriptions, improve customer communication, or clarify your policies. Having organized financial data makes this analysis much easier, allowing you to spot trends and protect your revenue over the long term. This proactive approach turns a negative experience into a valuable business lesson.
Winning a dispute is good, but preventing them in the first place is even better. A reactive approach to chargebacks can drain your time and resources. Instead, focus on building a proactive, long-term strategy that protects your revenue and keeps your business healthy. This means creating solid internal processes that make handling disputes efficient and effective, from organizing your evidence to training your team. By treating dispute management as a core part of your operations, you can minimize losses and maintain a positive standing with payment processors.
When a dispute notice arrives, the clock starts ticking. Scrambling to find receipts, shipping confirmations, and customer emails is stressful and inefficient. A better approach is to have a system for organizing evidence from the moment a transaction occurs. Think of it as building a case file for every sale. You should familiarize yourself with the types of visual evidence Stripe finds most compelling, like transaction summaries and proof of service. By having this information categorized and easily accessible, you can respond to any dispute quickly and confidently, ensuring you never miss a deadline because of a missing file.
Often, a dispute is just a miscommunication. A customer might not recognize a charge on their statement or may have an issue they don't know how to resolve. This is where a clear and compassionate communication strategy comes in. Your customer support team should be your first line of defense, equipped to handle inquiries with understanding and efficiency. By making it easy for customers to contact you and by responding proactively to their concerns, you can often resolve an issue before it ever becomes a formal dispute. This not only prevents chargebacks but also builds stronger customer relationships.
It’s crucial to keep a close eye on your dispute rate, which is the percentage of your transactions that result in a chargeback. A high rate can flag your business as risky to payment processors like Stripe, potentially leading to higher fees or even account termination. Regularly check your Stripe Dashboard to monitor this metric. If you notice a spike, it’s a signal to investigate the root cause. For businesses with high transaction volumes, chargeback management software can automate this process, providing valuable insights that help you identify trends and address problems before they get out of hand.
Dispute management shouldn't fall on one person's shoulders. Your entire team, from customer service to finance, should understand their role in the process. Provide clear training on your company’s policies, how to use Stripe’s dispute resolution tools, and best practices for fraud prevention. When everyone knows the plan, your responses will be faster, more consistent, and more effective. A well-trained team is one of your best assets in minimizing the financial impact of disputes. If you need help building these robust systems, a data consultation can set you on the right path.
Winning a dispute isn’t just about being right; it’s about proving you’re right with a clear, organized, and timely response. Once you have the basics down, you can refine your approach to improve your win rate and reduce the time spent on each case. A well-honed strategy involves managing deadlines, presenting compelling evidence, maintaining customer goodwill, and ensuring every response is top-notch. Think of it as building a reliable system that protects your revenue while treating disputes as a solvable problem, not a crisis. By focusing on these key areas, you can turn a reactive, stressful process into a manageable and efficient part of your operations.
When a dispute lands in your lap, the clock starts ticking immediately. You typically have between seven and 21 days to submit your evidence to the customer’s bank. This window is short, so it’s critical to have a system in place to act fast. Missing this deadline means an automatic loss, no matter how strong your case is.
Once you’ve submitted your evidence, the ball is in the bank’s court. It can take them anywhere from 60 to 75 days to review the case and make a final decision. While you wait, it’s best to consider the funds for that transaction on hold. To stay on top of deadlines, set up automated alerts or use a dashboard that tracks dispute timelines. Knowing how disputes work from a timing perspective helps you prioritize tasks and ensures you never miss a chance to defend a sale.
The person reviewing your dispute evidence at the bank is looking at dozens of cases a day. Your goal is to make their job as easy as possible by presenting a clear, concise, and compelling story. Start with a brief summary of the transaction and the dispute itself. Then, organize your evidence logically, using both text and images to support your claim. For example, if the dispute is for a product not received, include shipping confirmation with a tracking number and proof of delivery.
Always tailor your evidence to the specific reason code of the dispute. A "fraudulent" charge requires different proof than a "product not as described" claim. Using visual evidence like screenshots of customer conversations or delivery confirmations can be incredibly effective. Keep it factual, professional, and easy to scan. A well-organized packet of evidence is much more persuasive than a jumble of random files.
A payment dispute doesn't have to be the end of a customer relationship. Often, disputes arise from a simple misunderstanding, a moment of frustration, or a problem that could have been solved with a quick conversation. A compassionate and responsive customer support team can be your best defense. When a dispute is filed, consider reaching out to the customer directly to understand their issue. You might find that offering a simple solution or clarification is enough for them to withdraw the dispute.
This proactive approach shows that you value their business and are committed to making things right. Even if you can't resolve the issue directly and have to proceed with the dispute, treating the customer with respect protects your brand's reputation. A positive interaction can prevent them from leaving a negative review and might even encourage them to shop with you again in the future.
Consistency is key to successfully managing disputes. To ensure every response is as strong as possible, implement a quality control process. This could be as simple as creating standardized templates for different dispute types, which your team can then customize with case-specific evidence. This saves time and ensures you never forget to include critical information. It’s also a great idea to have a second person review each response before it’s submitted to catch any errors or identify missing evidence.
For businesses with higher transaction volumes, automating parts of this process can be a game-changer. Having systems that automatically pull transaction data, customer communications, and shipping details makes compiling evidence much faster and more accurate. When your financial tools are connected, you can build a more proactive and communicative workflow. Explore how integrations can help you streamline data collection and strengthen your dispute responses.
My customer promised they would withdraw the dispute. Do I still need to respond? Yes, you absolutely must submit evidence before the deadline. A customer's promise to withdraw a dispute doesn't stop the formal process with their bank. The only way to officially resolve the case in your favor and get your funds back is by submitting a strong response through Stripe. If you don't submit evidence, you will automatically lose the dispute, regardless of what the customer told you.
Is it always worth it to fight a dispute? Not always. You have to make a strategic decision based on the situation. If the disputed amount is very small and you know your evidence is weak, the time and effort spent fighting it might not be worth it. However, if you have solid proof that the charge was legitimate, it's almost always a good idea to fight. Winning protects your revenue, gets your dispute fee refunded, and helps keep your overall dispute rate low, which is important for maintaining a healthy account.
What's the single most important thing to remember when responding to a dispute? The deadline is everything. You have a very short window, typically 7 to 21 days, to submit your evidence. This is a hard deadline with no extensions. If you miss it, you automatically lose the dispute and the money is gone for good. The best thing you can do is act immediately when you receive a dispute notification and have your records organized so you can pull together a response quickly.
Can I appeal the decision if I lose a dispute? Unfortunately, no. Once the cardholder's bank makes a final decision, that's the end of the road for that specific case. There is no formal appeal process through Stripe. This is why it's so critical to put together the strongest, most complete response you can the first time around. Your initial evidence submission is your only chance to win.
Besides losing the money, how else do disputes affect my business? Losing the initial payment and the non-refundable fee is the most immediate impact, but the consequences go further. Every dispute, win or lose, is tracked by the card networks like Visa and Mastercard. If your business accumulates too many disputes relative to your total transactions, your account can be flagged as high-risk. This can lead to higher processing fees or even the risk of having your payment processing account shut down.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.
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