A dispute goes through a number of stages after it is raised by a shopper. Before you defend a dispute, it is important to understand how the dispute process works.
Dispute process
The process can begin with:
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Optional: Notification of Fraud - To notify you of fraud activity, Adyen sends equivalent of a Visa TC40 and Mastercard SAFE (System to Avoid Fraud Effectively) report. This is not a dispute, and no money is withdrawn from your account. This transaction can become a chargeback if there is no 3D Secure liability shift.
Suggested actions:- Actively review the NOF and proactively issue refunds (to avoid a chargeback).
- Block the shopper.
- Stop the shipment of goods if possible.
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Optional: Request for Information - The issuer requests more information about the transaction. At this stage, no money is withdrawn from your account. However, if you do not respond to the Request for Information in a timely manner, a chargeback may take place, and money may be withdrawn from your account. For more information, check our FAQ.
Suggested actions:- Provide the requested transactional information to the issuer.
- Notification of Chargeback - A Notification of Chargeback (NoC) may follow a Request for Information (RFI), or occur immediately after the transaction payment status is set to Settled or Refunded skipping the RFI step. In most cases, a chargeback is a next step after a NoC. It usually occurs a couple of days after the NoC.
From there, the dispute continues through the following statuses:
- 1st Chargeback - The disputed amount is withdrawn from your account. If you accept the dispute, or fail to upload your defense documents, this is the final status.
- InformationSupplied - Adyen receives the supporting documents and forwards them to the scheme. It is no longer possible to change these documents.
- ChargebackReversed - The disputed amount is transferred back to your account. The issuer is reviews the defense. If they accept, this is the final status.
- Pre-arbitration (Only Visa, Diners, and Discover) - If the issuer declines your defense, they open pre-arbitration, which Adyen will review.
- 2nd Chargeback - If the issuer declines your defense, or Adyen accepts their pre-arbitration case, a second chargeback occurs. You can not upload defense documents. This is the final status.
General flow
The following diagram illustrates the flow of a dispute:
Defense timeframes
The timeframe (in calendar days) to exercise and defend a chargeback:
| Status | Visa | Mastercard | American Express | Diners/Discover | CUP | JCB |
|---|---|---|---|---|---|---|
| Your response to RFI (from RFI date) |
18 | 18 | 14 | 18 | n/a | n/a |
| Bank exercise 1st chargeback (from transaction date) |
120 | 120 | 120 | 120 | 180 | 120 |
| Your response to 1st chargeback (from chargeback date) |
18 | 40 | 14 | 40 | 25 | 40 |
| Bank exercise 2nd chargeback (from defense date) |
30 | 45 | n/a | 30 | 20 | 45 |
| Dispute closure (from defense date) |
60 | After 2nd Chargeback | After 1st Chargeback | 60 | After the 2nd chargeback | After the 2nd chargeback |