A dispute record is created each time a customer questions a payment made to your organization. Each dispute record represents a customer request for more information about a charge.

Dispute Process

Retrievals and Inquiries

Issuing banks sometimes investigate a payment on receiving a customer query instead of immediately creating a dispute. These investigations are called retrievals (by American Express) or inquiries (by Mastercard, Visa, and Discover). They are often initiated when a customer does not recognize a transaction.

When a retrieval/inquiry is initiated,

  1. A Dispute record is created with the status set to warning_needs_response.

  2. If the retrieval/inquiry becomes a dispute (for example, if the merchant does not respond with sufficient evidence):

    1. The record status changes to needs_response.

    2. The dispute is processed as usual.

  3. If the retrieval/inquiry is closed by the issuing bank (for example, if the merchant provided sufficient evidence):

    1. The record status changes to closed.

    2. No further action is needed.

Best Practice: A retrieval or inquiry might become an un-winnable dispute if the merchant does not respond or responds with insufficient evidence. Try to resolve these queries as early as possible.

Dispute Statuses

Status

Description

What happens to the disputed amount?

closed

The issuing bank closed a retrieval/inquiry, typically due to satisfactory evidence submitted by the merchant.

Nothing; retrievals and inquiries do not trigger a chargeback.

lost

The customer’s dispute was upheld.

The customer’s bank account is credited.

needs_response

A response is required from the merchant to address a dispute.

A chargeback occurs, transferring funds from your Pending Balance to a holding account until the dispute is resolved.

under_review

The dispute is being evaluated against the issuing bank’s guidelines. Evidence cannot be submitted or edited once a dispute is under review.

Funds remain in a holding account until resolution.

warning_needs_response

A response is required from the merchant to address a retrieval/inquiry.

Nothing; retrievals and inquiries do not trigger a chargeback.

won

The customer’s dispute was not upheld.

Funds are transferred from the holding account and credited to your Pending Balance.

Related Documentation

  • Disputes Object. Learn about managing dispute records in the Fonteva Payments app.

  • Charges. Learn how charges work in Fonteva Payments.

  • Payouts. Learn how payouts work in Fonteva Payments.

  • Glossary. Understand the terminology associated with Fonteva Payments and other eCommerce features.