> ## Documentation Index
> Fetch the complete documentation index at: https://docs.withacclaim.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Disputes

> Understand how disputes occur, how to respond, and how outcomes impact your payments and balances.

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:

### 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