Disputes
PPRO provides a unified, merchant-centric approach to managing disputes across all payment methods.
Key Benefit: A single, consistent interface for managing disputes across all payment providers (Visa, Mastercard, Wero, AfterPay, etc.), with standardized reason codes, evidence requirements, and webhook events.
Core Definitions
- Chargeback: The reversal of funds from a merchant to a consumer due to a dispute. This can occur in two ways:
- Pre-emptive: The provider claws back funds when the dispute is created (e.g., Wero, Zip).
- Post-decision: The provider claws back funds after the merchant loses the dispute (e.g., BBVA, Afterpay).
- Chargeback Reversal: Funds are returned to the merchant after a pre-emptive chargeback, typically when the merchant wins the dispute or the consumer cancels/withdraws it.
- Dispute: A formal challenge raised by a consumer against a payment through their bank, card network, or local payment method provider. Each challenge results in the creation of a dispute record.
- Extended Disputes: These are disputes that consist of more than one phase. They can be created in the pre-dispute phase and escalate to the dispute and even the pre-arbitration phases during their lifecycle.
- Single Phase Dispute: A dispute that consists of only one phase: the dispute phase. This dispute is created in the dispute phase and does not escalate further during its lifecycle.
Why Disputes Occur
Consumers raise a dispute when they are dissatisfied with a transaction or the service provided. Most disputes fall into one of four main categories:
| Category | Description | Common Examples |
|---|---|---|
| Fraud | Unauthorized payments | "I didn't make this purchase", "My card was stolen" |
| Product/Service Issues | Problems with goods/services | "Item never arrived", "Service not as described", "Product was defective" |
| Processing Errors | Technical or billing mistakes | "Charged twice", "Wrong amount", "Canceled subscription but still charged" |
| Authorization Issues | Payment approval problems | "Never authorized this payment", "Recurring charge after cancellation" |
Disputes Flow
Status Definitions
Use these states to track dispute progress and determine which actions are available to you:
| State | Description |
|---|---|
| ACTION_REQUIRED | Ready for merchant action |
| ACCEPT_PROCESSING | Accept action submitted |
| CHALLENGE_PROCESSING | Challenge action submitted |
| UNDER_REVIEW | Provider/ Consumer actively reviewing evidence |
| WON | Provider ruled in merchant's favor |
| LOST | Provider ruled in consumer's favor |
Supported Payment Methods
The following payment methods are currently available for dispute management:
Make sure to check each payment method to determine whether they utilize the extended dispute phases.
Updated 21 days ago
What’s Next