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What is a dispute?

A dispute (also called a chargeback) occurs when a cardholder contacts their bank to reverse a charge. The bank pulls the funds back from your merchant account while the dispute is investigated. Disputes are a normal part of payment processing. The key is responding quickly with the right evidence.

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How disputes work

  1. Cardholder files a dispute with their bank
  2. Dime Payments is notified and a dispute.opened webhook fires to your endpoint
  3. Funds are held — the disputed amount is debited from your merchant account
  4. You have a response window — typically 7 to 10 business days to submit evidence
  5. The bank reviews the evidence and makes a final decision
  6. Funds are returned or forfeited based on the outcome

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Responding to a dispute

Log into the Dime Payments dashboard and navigate to Disputes to view open cases and submit evidence. Strong evidence includes:
  • A signed receipt or authorization record
  • Proof of delivery or service completion
  • Customer communication confirming the purchase
  • IP address and device data from the transaction
  • Refund policy the customer agreed to

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Dispute fees

A dispute fee is charged per chargeback regardless of outcome. Contact your Dime Payments representative for current fee schedules.

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Reducing disputes

  • Use clear billing descriptors — make sure your business name on card statements is recognizable
  • Respond to customer complaints quickly — a refund is always cheaper than a chargeback
  • Use AVS and CVV verification on card-present and card-not-present transactions
  • Send receipts — email confirmation reduces “I don’t recognize this charge” disputes
  • Honor refund requests promptly — a customer who can’t get a refund will call their bank

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Dispute statuses

StatusMeaning
OpenDispute filed, response window active
Under ReviewEvidence submitted, bank is reviewing
WonDispute resolved in your favor, funds returned
LostDispute resolved in cardholder’s favor, funds forfeited
ExpiredResponse window passed without submission

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Webhook events

Subscribe to these events to stay on top of disputes in real time: 
{
  "event": "dispute.opened",
  "data": {
    "dispute_id": "disp_abc123",
    "transaction_info_id": "9876543210",
    "amount": "49.99",
    "reason": "unrecognized_charge",
    "due_by": "2026-02-01"
  }
}

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Next steps

  • Webhooks — set up real-time event notifications
  • Payouts — understand how funds are deposited
  • API Reference — full endpoint documentation