What is a dispute notification?

In short

A dispute notification is the message that tells a merchant a cardholder has disputed one of its card payments, sent by the acquirer or payment service provider and, at the earlier stages, by an alert network. A dispute notification names the transaction, the amount, the reason and a deadline, and each stage of a dispute produces its own.

Also called
Dispute notice, Dispute webhook, Dispute alert message
Family
Fraud and disputes
Facts checked

What a dispute notification contains

  • The transaction: date, amount, card scheme and reference numbers
  • The stage: inquiry, alert, chargeback, pre-arbitration or arbitration
  • The reason code or dispute condition the issuer chose
  • The disputed amount, which can be part of the payment
  • The date by which the merchant has to answer
  • What has happened to the money: debited, held or unchanged

Providers deliver it by webhook, by email and as a dashboard entry. The merchant's deadline is shorter than the scheme's, because the provider needs time to pass the response on.

The stages that send a notification

Before a chargeback, an issuer's inquiry or a pre-dispute alert reaches the merchant through networks such as Verifi and Ethoca, and a refund at that point can end the matter. Once the issuer files, the acquirer sends a chargeback notification. Further notices follow if the case goes to pre-arbitration or arbitration, and when it closes.

A separate message, the fraud notification, reports that an issuer has marked a transaction as fraud. It may arrive with a dispute or without one.

Why dispute notifications matter to a payment platform

Deadlines run from the scheme's date, not from when the merchant reads the message, so a lost notification is usually a lost case. A platform that serves merchants maps each notification to the original payment, posts the debit and the fee to the ledger, starts a timer and records the outcome.

Dispute notification or chargeback notification?

Chargeback notification
The notice for one stage: the issuer has filed and the money has moved. Dispute notification is the wider term and includes it.
Pre-dispute alert
A notice sent before any chargeback, to give the merchant the chance to refund first.

Where a dispute notification shows up in a platform

Modules that do the work

Platforms that need it

Guides that go deeper

Every term

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