How to respond
You have limited time to act, usually 7 to 21 days depending on the card network. You have two options.
Accept the dispute
You accept the dispute charge and any related fees.
Challenge the dispute
You challenge the customer's claim to try to overturn it. If you win, the charge and any fees are refunded to you.
A final decision typically takes 2 to 3 months after evidence has been submitted.
Review the dispute category
Each dispute category has different response requirements. Reviewing the category first helps you collect the right evidence to counter the claim. Open the dispute's detail page in the Kustom Portal to see its category.
Best practices for responding to disputes
When a cardholder disputes a payment with their bank, the bank's goal is usually to protect the customer from paying for something they did not authorize or felt was misrepresented or damaged. As the seller you can counter the claim with your own evidence. Kustom does not influence the bank's decision, but the goal is to help you defend the dispute.
Organise the evidence
Present chronologically
Organise evidence in the order events occurred to create a clear timeline of the transaction and any communication.
Group by type
Separate receipts, communications, policies and system logs into distinct sections.
Include summaries
Briefly explain what each piece of evidence demonstrates.
Maintain clarity
Make sure all text is readable and images have sufficient contrast and resolution.
Keep evidence relevant and to the point
Card issuers review thousands of responses every day. A long explanation will not make your case more convincing, and evidence unrelated to the dispute reason will not help. For example, your return policy is not relevant to a claim that a product was never received. Describe clearly and concisely why the claim is unreasonable and how your evidence proves that, in a neutral and professional tone.
Example
Example
Jenny Rosen purchased [product] from our company on [date] using a Visa credit card. We shipped the product on [date] to the address provided by the customer, and it was delivered on [date] as shown in the tracking file provided. The claim that the product was not received is therefore incorrect.
You can investigate the dispute while collecting evidence, for example checking Google Maps and Street View to see where a delivery took place. Email or text correspondence with the customer can help but does not verify identity, so only include the relevant excerpts and redact duplicate content in long threads. Keep evidence factual, professional and concise. Too little evidence is a problem, but overwhelming the issuer with unnecessary content can obscure your argument.
Limit evidence file length
Card issuers manually review thousands of responses daily and will not comb through lengthy files. For example, if the network reason code is "Credit Not Processed" because the customer did not comply with your cancellation policy, upload only the relevant section of that policy rather than your entire terms and conditions, and highlight the relevant detail.
Include proof of service or delivery
Aside from fraud, the most common dispute reasons are claims that products or services were not delivered, were defective or unsatisfactory or were not as described.
For merchandise, provide proof of shipment and delivery with the full delivery address, not just city and postal code. The address should match what was approved at checkout, and both the orderer and recipient names should be included. If the "ship to" name differs from the customer's own, for example a gift purchase, be ready to explain why.
For digital goods, include evidence such as an IP address or system log proving the customer downloaded the content or used the service. For physical goods, include recipient name confirmation on delivery, or an explanation when contactless delivery applies.
Include a copy of your terms of service and refund policy
Provide proof that the customer agreed to and understood your terms of service at checkout, or did not follow them. A clean screenshot of how your terms are presented at checkout, with the relevant policy emphasised, works well. Do not include your entire policy text, since issuers will not read through it to find the relevant part.
Combine files of the same evidence type
You can only submit one piece of evidence per type. Combine several items of the same type, for example multiple emails or text screenshots, into a single file for customer communication evidence. This also keeps your overall file length down.
Formatting documents and images
Only PDF, JPEG or PNG file types are accepted.
Combined file size cannot exceed 4.5MB.
Combined page count must be under 50 pages.
Compress files with a tool such as Smallpdf if needed.
Dispute categories and suggested evidence
Each dispute category below lists how to prevent it, how to overturn it and the evidence suggested for physical products, digital products or services and offline services.
Credit not processed
Credit not processed
The customer claims they are entitled to a full or partial refund because they returned the product, did not fully use it, or the transaction was cancelled or not fully fulfilled, but no refund or credit has been issued yet.
How to prevent it
Have a clear return or cancellation policy that is easy to find or explicitly disclosed before purchase.
Honor your written policies promptly when a customer is entitled to a refund.
How to overturn it
Show one or more of the following: you already issued the refund the customer is entitled to, the customer is not entitled to a refund or the customer withdrew the dispute.
Suggested evidence
The language of your refund or cancellation policy as provided to the customer, an explanation of how and where it was disclosed prior to purchase, your explanation for why no further refund is owed, whether the customer tried to resolve the issue with you before disputing, any related communication and proof of return status if applicable.
Duplicate
Duplicate
The customer claims they were charged more than once for the same product or service.
How to prevent it
Correct accidental double charges immediately and notify the customer.
Send detailed receipts that make each payment's purpose clear.
Ensure your integration handles errors without double charging.
How to overturn it
Show that each payment was for a separate product or service, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
The charge ID of the payment that appears to be a duplicate, an explanation of the difference between the two payments, separate receipts or shipping labels for each and any customer communication about the issue.
Fraudulent
Fraudulent
The most common dispute type. The cardholder claims they did not authorize the payment, either because they do not recognize a legitimate charge or because the card was genuinely used fraudulently.
These are difficult to win since the claim is often valid. If you believe the charge was genuinely fraudulent, accept the dispute or choose not to challenge it.
How to prevent it
Make your statement descriptor clearly recognisable as your business.
Send receipts immediately after payment.
Follow general fraud prevention best practices.
How to overturn it
Show that the legitimate cardholder or an authorized representative made the payment, that you already issued a refund or that the customer withdrew the dispute or acknowledged the charge.
Suggested evidence
For physical goods, evidence linking the recipient to the cardholder, a matching shipping address, shipment date and tracking details and any evidence of prior payments on the same card that were not disputed. For digital goods, the customer's IP address, name, email and activity logs showing access or download after payment. For offline services, evidence linking the service recipient to the cardholder and documentation of when the service was provided.
General
General
An uncategorized dispute. Contact the customer for more detail on why they disputed the payment.
Product not received
Product not received
The customer claims they did not receive the product or service.
How to prevent it
Ship physical products promptly after payment.
Estimate delivery dates accurately and communicate delays clearly.
Save shipping labels and consider requiring a signature for high value items.
For digital goods, maintain access logs that tie usage back to the customer.
How to overturn it
Show that the product was delivered or is not yet expected to have arrived, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
For physical products, proof the customer is in possession of the item, the shipping address, shipment date, carrier and tracking number. For digital products, IP address, name, email and access logs. For offline services, documentation showing the service was provided and when.
Product not acceptable
Product not acceptable
The customer received the product but claims it was defective, damaged or not accurately described before purchase.
How to prevent it
Keep product descriptions, images and receipts accurate and not misleading.
Handle the issue directly rather than referring the customer to the manufacturer.
How to overturn it
Show that the product was accurately represented, that it was not damaged or defective, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
A description or image of how the product was represented before purchase, any related customer communication and your refund policy as disclosed to the customer.
Subscription cancelled
Subscription cancelled
The customer claims you continued charging them after they cancelled a subscription.
How to prevent it
Cancel subscriptions promptly on request and confirm the cancellation to the customer.
Clearly state at signup that the customer is agreeing to recurring payments.
Communicate your cancellation procedure clearly.
How to overturn it
Show that the subscription was still active and the customer did not follow the cancellation procedure, that you already issued a refund or that the customer withdrew the dispute.
Suggested evidence
Your cancellation policy as shown to the customer, an explanation of how and when it was disclosed, a justification for why the payment is still valid and any renewal notice or acknowledgement of continued use.
Unrecognized
Unrecognized
The customer does not recognize the payment on their statement. This is effectively indistinguishable from a fraudulent dispute.
How to prevent it
Make your statement descriptor easily recognisable.
Send receipts on payment so customers can recall what they paid for.
How to overturn it
Show that the legitimate cardholder or an authorized representative made the payment, that you already issued a refund or that the customer withdrew or acknowledged the charge.
Key reminders
⚠️ You only get one chance to respond. No further responses are allowed.
⚠️ Missed the deadline? The dispute is automatically lost.
⚠️ All outcomes are final.
Card dispute fees
Kustom receives a dispute fee from the customer's bank when a card dispute is lost, and passes this cost to you. The fee amount depends on the buyer's country, not the merchant's location.
All fees below are excluding VAT.
Buyer country | Currency | Card dispute fee |
EEA | EUR | 15 |
UK | GBP | 15 |
Switzerland | CHF | 15 |
Norway | NOK | 150 |
Denmark | DKK | 150 |
Sweden | SEK | 150 |
Poland | PLN | 65 |
Czech Republic | CZK | 400 |
US | USD | 15 |
Canada | CAD | 15 |
Australia | AUD | 25 |
New Zealand | NZD | 25 |
Romania | RON | 75 |
These fees are set by the relevant card schemes, such as Visa and Mastercard, and are subject to change without notice. Kustom makes reasonable efforts to keep this table current but cannot guarantee it reflects the latest figures. Contact Kustom support for the most current fees.