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Disputes occur when a payer challenges a completed payment through their bank or card network. They are typically initiated after a payment has been completed and may result in funds being reversed, held, or recovered depending on the outcome.

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How disputes work

Disputes follow a multi-step process: initiated, reviewed, and resolved.
  1. Dispute initiated The payer contacts their bank or card issuer to challenge a transaction.
  2. Dispute received The dispute is communicated through the payment network and recorded in Acclaim.
  3. Respond with evidence (if applicable) You may provide supporting information to contest the dispute.
  4. Outcome determined The dispute is resolved as either won or lost.

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When disputes occur

Disputes are most common with card payments, but may occur with other payment methods depending on network rules. Common reasons include:
  • Unauthorized transaction
  • Duplicate charge
  • Service not provided
  • Fraud or misuse

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Responding to disputes

When a dispute is received, you may have the option to respond. Typical response actions include:
  • Reviewing the dispute reason
  • Submitting supporting evidence
  • Accepting the dispute (no response)
Evidence may include:
  • Proof of payment authorization
  • Transaction details
  • Communication with the payer
Deadlines for responses are defined by the payment network.

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Outcomes

Disputes can result in different outcomes:

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Won

The dispute is resolved in your favor.
  • Funds are returned to your balance
  • The payment remains valid

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Lost

The dispute is resolved in favor of the payer.
  • Funds are returned to the payer
  • The payment is effectively reversed

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Financial impact

Disputes affect your balances and reporting.
  • Funds may be debited when a dispute is initiated or lost
  • Funds may be returned if the dispute is won
  • Fees or penalties may apply depending on the network
Disputes should be included in your reconciliation process.

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Timing

Disputes can occur days or weeks after a payment.
  • Response windows are limited
  • Final resolution may take several weeks
Timing depends on the payment method and network.

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Relationship to refunds

  • Refunds are initiated by you
  • Disputes are initiated by the payer through their bank
Issuing a refund early may help prevent disputes in some cases.

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Best practices

  • Respond to disputes promptly within required timeframes
  • Keep clear records of payment authorization and communication
  • Use clear descriptors to reduce confusion for payers
  • Issue refunds proactively when appropriate
  • Monitor dispute rates and trends

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Summary

  • Disputes occur when a payer challenges a completed payment
  • They are initiated through banks or card networks
  • Outcomes determine whether funds are returned or retained
  • Disputes impact balances and should be tracked in reconciliation
Last modified on March 29, 2026