---
url: >-
  https://acquirer-api-docs-v4-en.pingpongx.com/en/notes/technicalterm/disputes/index.md
description: >-
  A dispute refers to the process where a cardholder raises an objection to a
  transaction, involving communication and negotiation between the cardholder,
  issuing bank, acquiring bank, and merchant. The dispute handling stage is
  relatively flexible, resolving objections through initial communication; if
  unresolved, it may escalate to a chargeback, resulting in transaction reversal
  and significant impact on the merchant.
---
A dispute refers to a cardholder raising an objection to a transaction, believing that the transaction has issues.

## Disputes Process

+ Cardholder initiates dispute: The cardholder contacts the issuing bank to explain their objection to a specific transaction.
+ Issuing bank review: The issuing bank reviews the cardholder's dispute request and decides whether further processing is needed.
+ Communication with merchant: The issuing bank may contact the acquiring bank and merchant, requesting relevant evidence and information about the transaction.
+ Resolution or escalation: If the dispute can be resolved through communication and negotiation, the dispute ends; otherwise, the dispute may escalate to a chargeback.

## Main Differences Between Disputes and Chargebacks

+ Stage:
    - Dispute is the preliminary stage of chargeback, where the cardholder raises an objection to a transaction.
    - Chargeback is the further action taken by the issuing bank after the dispute remains unresolved, formally reversing the transaction.

+ Processing flow:
    - Dispute handling typically involves preliminary communication and negotiation, attempting to resolve the issue without formal reversal.
    - Chargeback handling is more formal, involving transaction amount reversal, and must follow payment network regulations and procedures.

+ Impact:
    - The dispute handling stage is relatively flexible, allowing resolution through communication with minimal impact.
    - Chargeback has a greater impact on merchants, not only involving fund reversal but also potentially affecting the merchant's reputation and future transaction processing.