> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dimepayments.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Disputes

> How chargebacks and disputes work in Dime Payments.

## 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.

## 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

## Responding to a dispute

Log into the [Dime Payments dashboard](https://app.dimepayments.com) 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

## Dispute fees

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

## 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

## Dispute statuses

| Status         | Meaning                                                 |
| -------------- | ------------------------------------------------------- |
| `Open`         | Dispute filed, response window active                   |
| `Under Review` | Evidence submitted, bank is reviewing                   |
| `Won`          | Dispute resolved in your favor, funds returned          |
| `Lost`         | Dispute resolved in cardholder's favor, funds forfeited |
| `Expired`      | Response window passed without submission               |

## Webhook events

Subscribe to these events to stay on top of disputes in real time:

```json theme={null}
{
  "event": "dispute.opened",
  "data": {
    "dispute_id": "disp_abc123",
    "transaction_info_id": "9876543210",
    "amount": "49.99",
    "reason": "unrecognized_charge",
    "due_by": "2026-02-01"
  }
}
```

## Next steps

* [Webhooks](/guides/webhooks) -- set up real-time event notifications
* [Payouts](/guides/payouts) -- understand how funds are deposited
* [API Reference](/api-reference) -- full endpoint documentation