What is a dispute?
A dispute occurs when a customer contests a payment typically through their bank or card issuer.
Locating disputes in Kustom Portal
Disputes needs to be handled in the Kustom Portal. To find disputes in the Kustom Portal follow the steps below:
Open the Kustom Portal and navigate to the Disputes section in the menu on the left hand side.
Ensure the correct store ID (MID) is selected, particularly if managing multiple stores.
Under the tab Response required you will find all disputes requiring action.
To find a specific dispute you can search for it using order-ID, merchant reference or dispute-ID.
You can also see open disputes on the homepage, by clicking on the dispute card you will be redirected to the Disputes page. If you click on Open Klarna disputes you will be redirected to Klarnas merchant portal.
Dispute categories
Response required: This dispute needs your immediate attention. A reversal will appear on your settlement report and be held until a final decision has been made.
Under review: Disputes where you have already submitted evidence or information to the card issuer. No further action is needed from you, but you can track which cases you have already responded to.
Does not need response: Enquiries that do not require action, however monitoring is needed. Most of these are return-related enquiries. If a refund on the order is required, you can handle the refund directly from the dispute, the order page or by API.
Closed: Disputes that are resolved (won or lost) as well as enquiries that never escalated into a formal dispute.
All: A complete view of all disputes in the Kustom Portal, regardless of status.
You can view and handle all relevant disputes directly in the Kustom Portal, unless the order predates the Klarna upgrade.
Respond to disputes
Follow the steps below to respond to a dispute.
Go to the Dispute page and make sure you are in the Response required tab.
Click on the dispute to open the detailed view.
Here, you can review the dispute and submit your response.
You can choose to accept the dispute or to challenge it.
Accept the dispute
To accept the dispute, click Accept dispute
By accepting the dispute you agree with the customer's claim and the customer will be refunded the full disputed amount.
Challenge the dispute
To challenge the dispute, click Counter dispute.
Select the reason you believe you should win the dispute, then click Next.
Upload and enter all relevant supporting evidence. Items marked with Recommended are considered the most effective for the type of dispute.
Once all evidence is provided, review the details and confirm accuracy by selecting the verification checkbox.
The form follows Visa and Mastercard standards and adjusts accordingly.
Once you have submitted a response to a dispute, you can no longer accept it. After responding, the dispute will be under review and resolution process is transferred to the payment provider, who reviews your response before moving forward with any actions related to the dispute.
See our full guide on suggested evidence here.
Managing full and partial refunds in the dispute app
Refunds are blocked on orders with an open dispute requiring response and needs to be handled within the dispute. You have the following options when handling an open dispute that should be refunded:
Accept the dispute – If you agree with the customer. This will automatically refund the customer of the disputed amount.
Challenge the dispute – Provide all requested information and evidence.
Handling Full Refunds: If the disputed amount is correct and should be refunded, accept the dispute. This action automatically refunds the customer.
Handling Partial Refunds: For partial refunds, specify the partial amount in your response and include supporting evidence. Use the counter dispute action to justify the refunded amount. Ensure that both refunded and non-refunded portions are clearly communicated to avoid confusion. For example, if only part of a physical order was returned, provide evidence for the items received and those not returned.
Encouraging Customer Action: To prevent disputes from requiring unnecessary follow-up, ask customers to withdraw the dispute once they are satisfied with their refund. This must be done before the dispute reaches Open status (35 days post-creation).
Dealing with Incorrect Dispute Amounts: If the customer’s claim is incorrect, use the counter dispute action and provide evidence supporting the correct amount and refund only that amount after dispute resolution.
Dispute outcomes
Below you will find information about the different dispute outcomes.
Won - The payment provider ruled in your favor. You'll receive a reversal correction on your next payout.
Partially won - The payment provider determined the customer was entitled to a partial refund. You can find the exact refunded amount in the dispute timeline within the detailed view.
Accepted - You accepted the dispute, and the customer has been refunded the full disputed amount.
Lost - The payment provider ruled in the customer's favor, and the customer has been refunded the full disputed amount.