Issuing disputes

The purpose of a dispute is to recover funds for captured transactions. Disputes are often used to correct fraudulent transactions or problems with the quality or delivery of the product.

Stripe offers a guided Dashboard process and an API to submit disputes and monitor them through to resolution. This process typically takes between 30 and 90 days. If you only manage occasional disputes, we recommend using the Dashboard. If you manage a high volume of disputes, we recommend programmatically managing disputes using the API.

If you think a card has been compromised, cancel and replace it using the Dashboard or the API before continuing with the dispute process.

Considerations before initiating a dispute

Requirements for fraud disputes

Platforms must allow their connected accounts to submit fraudulent disputes directly to Stripe through a dashboard that you, as the Platform, make available using our APIs or embedded components. You can’t restrict their ability to submit such disputes in any way. After fraud disputes are submitted, Stripe will review them to determine if the cardholder needs to be reimbursed.

Non-fraud disputes

Make sure that the cardholder has exhausted other means of resolving the issue. They must attempt to return any products they received, cancel any ongoing services, and seek a refund directly from the business. Collect documentation of these attempts to use as evidence when filing the dispute.

Blocked dispute submissions

Stripe might block fraud dispute submission if the transaction doesn’t qualify for fraud protection under local regulations and the account holder has no dispute rights according to network rules.

Card networks might consider a dispute invalid for the following reasons (among others):

• The transaction is a refund and not a capture.
• The transaction is a mobile push payment transaction.
• More than 110 days have passed since the business captured the transaction.
  • However, if you plan to file an Authorisation dispute, this deadline is shorter:
    • For Visa, the transaction was captured more than 65 days ago.
    • For Mastercard, the transaction was captured more than 80 days ago.

In the Dashboard, the dispute transaction button is only enabled for eligible transactions. In the API, attempting to dispute an ineligible transaction results in an error.

Lifecycle

Newly-created disputes begin in an unsubmitted status. At this point, you can update their evidence and metadata. After you’ve added all the required evidence, you can then submit the dispute. If you don’t submit a dispute within 110 days of the transaction clearing, its status becomes expired.

Stripe and card networks process disputes that have a status of submitted. As such, you can’t update dispute evidence, but you can still update their metadata. Submitted disputes enter into a multi-step process defined by card networks and participating banks. After a dispute is resolved, Stripe transitions it to either the terminal won or lost status.

Creation

Fill in the Dispute Amount field to indicate the disputed amount (full or partial). The field’s initial value is the transaction amount. Submissions that have empty Dispute Amount fields create disputes with the full transaction amount.

Dispute Amount field on the Issuing dispute creation page

Update

Dashboard

API

Use the Unsubmitted tab to access disputes that are in progress. The Submit before date indicates when the dispute expires.

From the individual dispute page, click Edit submission to access the form where you can update the evidence.

Submission

Resolution

Dashboard

API

Stripe updates a dispute’s status when we hear back from the card network.

If you win the dispute, its status changes to won and we credit your Issuing balance in the form of an issuing_dispute balance transaction. This balance transaction is accessible in the Dashboard under All transactions and on the bottom of the dispute detail page.

Note

If you make a transaction in a currency other than your account’s default currency (for example, a GBP transaction that your USD card pays), Stripe refunds the won dispute in the transaction’s original currency.

If you lose the dispute, the dispute’s status changes to lost and we don’t credit any amount to your Issuing balance.

Viewing a dispute’s balance transactions in the Dashboard.

Stripe processes disputes according to card network rules. These rules are updated twice a year. You can review the latest rules on each network’s website:

• Visa: Visa Core Rules and Visa Product and Service Rules
• Mastercard: Mastercard Rules
  • The Mastercard Chargeback guide is especially useful for understanding Mastercard’s dispute rules.

Testing

Dashboard

API

Stripe’s test mode allows you to test dispute logic without any live mode effects. For example, we send webhook events, create balance transactions, and update your test mode Issuing balance without moving any funds or changing any balances in live mode.

Similar to live mode, a test mode dispute transitions to expired 110 days after the transaction is captured.

When submitting a test mode dispute through the Dashboard, you can choose the dispute’s outcome. Selecting Won automatically changes the dispute’s explanation field to winning_evidence, and selecting Lost automatically changes the dispute’s explanation field to losing_evidence.

Webhooks

To be notified of changes to your disputes, you can listen for Issuing dispute webhook events. All Issuing dispute events contain the updated Dispute object.

Dispute reasons and evidence

You must submit supporting documentation with a dispute. The quality of this documentation directly influences your chances of winning and the strongest disputes have clear, descriptive documentation. All relevant information or documentation must be included when you first submit the dispute.

The type of documentation required depends on the reason for the dispute. Because of this, it’s important to choose the correct reason.

Disputes can be submitted with one of these reasons:

• Cancelled: The cardholder cancelled or returned merchandise or cancelled services, and the business didn’t process a credit or void a transaction receipt.
• Duplicate: Covers processing error dispute types, including duplicate transaction, incorrect amount, paid by other means, and so on.
• Fraudulent: The cardholder’s details were compromised and the transaction wasn’t authorised by them.
• Merchandise not as described: The cardholder received the merchandise, but it didn’t match what was presented at time of purchase, or it was damaged or defective.
• Not received: The cardholder participated in the transaction but didn’t receive the merchandise or service.
• No valid authorisation: (API only) The business processed a transaction without a valid authorisation.
• Service not as described: The cardholder received the service, but it didn’t match what was presented at time of purchase.
• Other: A dispute scenario that doesn’t clearly qualify as any other dispute reason. Authorisation disputes might have this reason (for example, if filed through the Dashboard).

In the Dashboard, Merchandise not as described and Service not as described are consolidated under Not as described.

Each reason requires a different set of evidence:

Fraud disputes

You can dispute a transaction for fraud if the cardholder’s card details were compromised and they didn’t authorise the transaction.

Before filing a dispute:

1. Confirm with the cardholder that they didn’t make the transaction in error, and that it wasn’t made by someone known to them. Transactions made by a friend or family member, for example, don’t constitute fraud for dispute purposes.
2. Cancel the affected card.

In certain situations, you can lose fraud dispute rights for a transaction:

• For card-present transactions: A card network might automatically reject a fraud dispute because liability defaults to the issuer.
• For card-not-present transactions: A card network might automatically reject a fraud dispute if the cardholder was authenticated during the transaction. That often happens when 3D Secure was requested or a secured payment method like Apple Pay was used.

Authorisation disputes

Each time an acquiring business processes a transaction, they must first request an authorisation from the issuer. If a business captures a payment without a valid authorisation, you can dispute the transaction. The reason you should choose depends on the method used to submit the dispute:

• Filing a dispute through the API: File the dispute under the no_valid_authorization reason.
• Filing a dispute through the Dashboard: File the dispute under the other reason and specify in the explanation field that the business didn’t get a valid authorisation.

Authorisation disputes are distinct from fraud disputes:

• File a fraud dispute when the cardholder didn’t participate in the transaction. For example, a thief stole their card and used it.
• File an authorisation dispute when the business didn’t have a valid authorisation for the transaction. For example, they captured a payment 2 days after its authorisation expired.

A common reason for an authorisation dispute is an overcapture. An overcapture occurs when the captured amount exceeds the authorised amount. When you submit an authorisation dispute for an overcapture, you must adjust the dispute amount to include only the amount that exceeded the authorisation.

A card network can reject an authorisation dispute if the transaction had a valid authorisation. In the case of an overcapture, it can reject the dispute if the disputed amount doesn’t take into account the allowed overcapture amount for the associated MCC.

Withdrawing

Stripe can only withdraw a dispute within 1 day of its submission to the card network. If you want to withdraw a dispute, contact Stripe Support immediately.

Liability for fraud (platforms in the USA)

Most aspects of Regulation Z don’t apply to business-purpose cards, but Regulation Z does protect users of business-purpose cards from fraud and other types of “unauthorised card use", which means the use of a charge card by a person who doesn’t have the authority to use it. In most cases, an accountholder can’t be held responsible for unauthorised use of cards linked to their account unless a reasonable investigation into the fraud is conducted. However, if the account holder has 10 or more employee authorised users, they might not qualify for this protection.

When one of your users disputes a transaction because the user believes it was unauthorised, Stripe sends the dispute to the card network for adjudication (as with any other type of disputed transaction). Stripe or the card network determines who must pay for the fraud: you or the business.

If Stripe or the card network determines the business is liable for the fraud, then neither you nor your user are responsible for the disputed transactions.

If Stripe or the card network determines that you’re liable for the fraud, then you might be required to pay for the disputed transaction. Stripe performs a reasonable investigation into the dispute to determine whether fraud actually occurred or whether the user doesn’t qualify for protection under Regulation Z. If the investigation uncovers that unauthorised card use actually occurred and that the user qualifies for protection, then you remain liable for the unauthorised transactions. Alternatively, if the investigation uncovers that unauthorised card use didn’t occur or that the user doesn’t qualify for protection, then we hold the accountholder responsible for the disputed charges.

Emailing connect accounts

Issuing platforms must send regulated notice emails to connected accounts when a dispute is submitted, and again when a dispute is won or lost. Learn more about regulated notices.

Use with Stripe Treasury

Disputes of ReceivedDebits on FinancialAccounts have a corresponding DebitReversal after the dispute is submitted.