What should I do when a customer disputes a credit-card charge?

Money & Running the Business

What should I do when a customer disputes a credit-card charge?

The short answer

Read the processor notice immediately, note the response deadline and dispute reason, and decide whether to accept the dispute or submit evidence. If you respond, build a short, organized package that connects the customer, agreement, payment, delivery, and communication.

Do not pressure or threaten the customer. A charge dispute has formal rules and deadlines, and the card issuer makes the decision.

Secure the timeline first

Open the dispute inside your processor account, not from an email link you weren’t expecting. Record:

  • dispute ID and amount.
  • transaction and customer.
  • reason code.
  • response deadline.
  • funds withdrawn or held.
  • evidence the processor requests.

Stripe’s dispute response guide says evidence requirements depend on the dispute category and warns merchants to submit by the deadline. Your processor and card network control the actual process, so follow the notice in your account.

Decide whether to accept or challenge

Accepting may be sensible if the customer was genuinely charged twice, you cannot prove delivery, the refund should have been issued, or the amount is smaller than the time and documentation needed.

Challenge when the records clearly show an authorized purchase and fulfillment, and the processor allows relevant evidence. Winning is never guaranteed.

Don’t issue a separate refund after a dispute is already open unless your processor specifically tells you to. You could lose both the disputed amount and the refund.

Build evidence that answers this dispute

Useful evidence may include:

  • signed proposal, order, or accepted terms.
  • invoice and payment record.
  • delivery confirmation, access log, or completion email.
  • messages showing the customer used or approved the work.
  • refund and cancellation policy shown before purchase.
  • your response to any complaint.
  • the business name shown on the card statement.

Arrange it chronologically and label it. A 40-page screenshot dump makes the reviewer hunt for your point.

For “service not received,” show the promise, delivery date, and proof of delivery. For “not as described,” show the description the customer saw and how the delivered work matched it. For “unrecognized,” show identifiers connecting the buyer to the order without exposing unnecessary sensitive information.

Contact the customer carefully

A simple note may uncover confusion:

Hi Lila, I received notice that the $180 charge dated August 12 was disputed. It relates to invoice 771 for the brand review delivered August 14. If you don’t recognize it or there’s a problem I missed, please reply so I can understand what happened.

Do not ask the customer to lie, withdraw a legitimate complaint, or send private card information. Keep the message factual.

Prevent the next one

After the case, inspect the system rather than blaming one buyer. Use a recognizable statement descriptor, send receipts, describe refund terms before payment, keep delivery evidence, answer support quickly, and prevent duplicate submissions.

Record the dispute and any fee correctly in your books. If the loss affects taxes, contracts, insurance, or a large sum, consult a qualified professional and check your local laws.

Sources and further reading

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