Dispute

What a dispute is

A dispute is a cardholder's challenge to a transaction, raised with the cardholder's bank, known as the issuer. The issuer reviews the claim and, if it meets network rules, sends the case through the network to your acquirer for review. Your acquirer then notifies you and may request records.

Visa groups dispute conditions into four categories: Fraud (10), Authorization (11), Processing Errors (12) and Consumer Disputes (13). Common claims include an unrecognized charge, a duplicate payment, an incorrect amount, goods not received, or a refund that did not arrive. A dispute is broader than a chargeback: an inquiry can request information before a formal chargeback reverses funds. Visa also uses “dispute” for its chargeback process.

A dispute can cost you the sale and the goods, so accurate records and a timely response matter.

How the dispute process works

An inquiry asks for transaction information and may be resolved before a formal chargeback. If the issuer proceeds with a dispute, the disputed amount can be debited from your account while the case is reviewed. You can accept the claim or respond through your acquirer with relevant records, such as a receipt, authorization details, proof of delivery or a refund record.

There is no single response deadline for every case. Your acquirer sets the response window, and missing it can mean losing even when you have evidence. As of 2026, Visa and Mastercard cardholders generally have 120 calendar days from the transaction or expected delivery date to dispute a payment. Some delayed-delivery cases have outer limits up to 540 days.

What a dispute can cost your business

If you lose or accept a dispute, you can lose the sale amount and the goods or services already provided. You also spend staff time collecting records and responding. For an illustrative $80 transaction, losing the case means losing the $80 sale, as well as the product or service cost.

There is no universal dispute fee or standard statement label. Your agreement determines any separate administrative fee. Match each debit to its case details, transaction date and amount instead of assuming every dispute-related charge is the reversed sale. A recognizable statement descriptor with your business name, city and state helps customers identify purchases and avoid confusion.

What you can actually change

You cannot control whether a cardholder contacts their bank, but you can reduce preventable disputes and make a strong, timely response. Keep transaction records linked to each sale and follow the deadline shown in the notice from your acquirer.

• Use a business name and location customers recognize on their card statements.
• Show refund, return and cancellation terms before purchase, and issue eligible credits promptly.
• Process each sale once, obtain required authorization and submit transactions promptly.
• Track disputes by reason and sales channel, then provide relevant evidence before the case deadline.

1. 01
   Check your descriptor. Compare the name, city and state customers see on card statements with the business details they know.
2. 02
   Organize sale records. Keep receipts, delivery proof, authorization details and credit records tied to each transaction.
3. 03
   Log every deadline. Record the response date from each acquirer notice and send relevant evidence before that date.

Frequently asked questions