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Disputes at Kustom

A guide to handling payment disputes in the Kustom Portal.

Updated over 3 weeks ago

What is a dispute?

A dispute occurs when a customer contests a payment—typically through their bank or card issuer. Common reasons include:

  • The item never arrived

  • A return wasn’t processed

  • The discount wasn’t applied or pricing was incorrect

  • The charge is unrecognized or suspected fraud

Note: For Klarna disputes, the enquiry stage lasts for 35 days. During this time, no financial actions are taken, providing an opportunity to resolve the issue before escalation into an open dispute.


Kustoms role during disputes

Kustom helps you stay on top of disputes, regardless of payment method. Since disputes are handled by the relevant payment method, Kustom is not involved in dispute decisions.

Instead, Kustom helps facilitate the dispute process by providing:

  • A centralized view of disputes across payment methods

  • Visibility into dispute statuses, timelines, and outcomes

  • Tools to track warnings, enquiries, and disputes as they move forward

  • A structured way to keep all dispute-related information in one place

Some providers start issues as warnings or enquiries (for example, Klarna returns), which may escalate into formal disputes if they aren’t resolved. Others may open disputes directly. Kustom helps you track these differences so nothing slips through the cracks.


Filtering the dispute page

You can refine your view using various views and filter options.

Start with the dispute status in the middle of the page, choose to display Response required, Under review, Does not need response, Closed or All disputes.

  • Filtering options: Use the dropdown menus to narrow your results:

    • Stores: Filter by the store where the dispute is located.

    • Reason: Find specific reasons for the dispute. Reasons stem from Klarna, American Express, Mastercard and Visa.

    • Status: If you are on the Closed or All view you can filter on status.

    • Date range: Select a time period to view disputes within that range.

      • If you're unsure when the dispute was created, leave this unselected to find all disputes.

  • Search bar: Click the magnifying glass icon to the right to search for disputes using:

    • Dispute ID

    • Merchant reference

    • Order ID

    • Customer details

These options help you quickly find and manage the disputes that matter most.


Dispute types and statuses

Kustom uses status labels to indicate the current stage of a dispute. Below are the key statuses and their meanings:

  • No response required: The formal dispute has not yet been opened, it's a enquiry dispute. At this stage, no action is needed, though it’s advisable to monitor the case in case it escalates.

  • Response required: The dispute is open and requires action. You must counter the dispute by submitting your evidence. If you don't counter the dispute you will automatically lose the dispute.

  • Under review: After you respond to an open dispute, it enters a review phase. No further action is needed while the case is being reviewed.

Disputes in the Kustom Portal are grouped into two categories: Enquiries and Chargebacks. The table below outlines what each status means:

Status

Dispute Type

Description

Klarna equivalent

All

All

All disputes, regardless of status ´

-

Does not need response

Enquiry

The issue is open and needs action (not response) from you (the merchant); you the merchant may issue a refund or dispute the claim. If unresolved, it may escalate to a dispute.

no_response_required

Warning closed

Enquiry

The enquiry is closed.

-

Response required

Chargeback

The dispute is open and requires action. Evidence must be submitted to avoid automatic loss.

response_required

Under review

Chargeback

The dispute is under review; evidence has already been submitted to the issuer.

-

Lost

Chargeback

The dispute is closed and the merchant lost.

-

Won

Chargeback

The dispute is closed and the merchant won.

-

Note: Enquiries are not formal disputes and won’t incur fees unless escalated into a dispute. Chargebacks are formal disputes with potential financial implications.

Additionally, financial actions such as withdrawing the disputed amount occur only if the enquiry escalates, ensuring merchants have time to resolve issues beforehand.


Set up notification alerts

Stay updated on disputes requiring attention by enabling email notifications.


Locate the order linked to a dispute

On the dispute page, you’ll find the Order ID associated with the dispute. To view the order details, simply click on the Order ID in the dispute overview — the order window will open on the right-hand side.

This allows you to easily manage both the dispute and the related order from the same page.


Key reminders

⚠️ You only get one chance to respond – no follow-ups allowed.

⚠️ Missed the deadline? If a deadline is missed, specific outcomes and protocols are triggered. Automatic refunds are processed for customers, making manual refunds impossible, and the dispute is marked as lost. Merchants also risk additional penalties or dispute fees if no action is taken promptly.

⚠️ All outcomes are final

Important: Kustom does not handle disputes or make any decisions regarding their outcome. The decision is made by the financial institution or platform where the customer submitted the dispute (e.g., their bank, card issuer or Klarna).


Read more here on specific dispute types

Find more information here on specific disputes typer for Klarna, cards and Billie.


How to export (download) a list of disputes

Follow these steps to export a list of disputes:

  • Open Kustom Portal and sign in.

  • Navigate to Disputes in the menu.

  • Select the filters you would like to use for your exported list of disputes. You can filter by:

    • Stores: Filter by the store where the dispute is.

    • Date range (deadline): Select a time period to view disputes within that range.

    • Status: Filter disputes based on their current status.

  • Click on Download disputes at the far left, right under the date range filter

  • Select if you would like to export a CSV or Excel file.


Localized labels

In the Kustom Portal, "Dispute Inquiries" may appear with localized translations:

  • English (en-GB): Dispute inquiries

  • German (de-DE): Streitanfragen

  • Finnish (fi-FI): Kiistakyselyt

  • Swedish (sv-SE): Tvisteförfrågningar

  • Norwegian (nb-NO): Tvisteforespørsler

  • Danish (da-DK): Tvisteforespørgsler


We update this content regularly, minor inaccuracies may occur.

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