{"title":"Dispute flow","category":"default","creationDate":1681287960,"content":"

Each dispute goes through a dispute flow. Before you accept or defend a dispute, it is important to have a general understanding of how the flow works, and how you can follow a dispute through the flow.<\/p>\n

Requirements<\/h2>\n

Before you begin, take into account the following requirements.<\/p>\n\n\n\n\n\n\n\n\n
Requirement<\/th>\nDescription<\/th>\n<\/tr>\n<\/thead>\n
Integration type<\/strong><\/td>\nMake sure that you have built an online payments integration<\/a>.<\/td>\n<\/tr>\n
Customer Area roles<\/a><\/strong><\/td>\nTo follow disputes through the dispute flow, make sure that you have one of the following roles:
Webhooks<\/a><\/strong><\/td>\nTo follow disputes using webhooks, subscribe to the Standard webhook<\/strong> and enable<\/a> dispute events.<\/td>\n<\/tr>\n
Setup steps<\/strong><\/td>\nYou can manage disputes using the Disputes API<\/a> or the Customer Area<\/a>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Dispute flow overview<\/h2>\n

The dispute flow can differ between card schemes and payment methods, but the general flow is the same for most.<\/p>\n

A chargeback takes place when a cardholder disputes a payment and asks their issuing bank to reverse it. To charge back the payment, the bank submits a formal dispute on behalf of the cardholder. Adyen processes the chargeback and debits the payment amount and the chargeback processing fee from your account. The dispute flow starts.<\/p>\n

You can accept or defend the chargeback using the Customer Area<\/a> or the Disputes API<\/a>. If you defend the chargeback, you have to provide documents to support your defense.<\/p>\n

The issuing bank reviews the information you supply and accepts or declines your defense. If the issuer accepts your defense, or if the cardholder cancels the chargeback, the funds will return to your account.<\/p>\n

You can follow the dispute flow by monitoring the dispute in your Customer Area, and by listening to webhook messages. To monitor overall dispute performance, such as win and loss rates, you can use the Risk & dispute management dashboard<\/a>.<\/p>\n

The following diagram illustrates the flow of a dispute:<\/p>\n

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Dispute stages<\/h2>\n

In general, a dispute can go through the following stages in the flow:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Stage<\/div><\/th>\n
Description<\/th>\n<\/tr>\n<\/thead>\n
Notification of Fraud (NOF)<\/strong>
(optional)<\/td>\n		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<\/a>.

Suggested actions:
  • Actively review the NOF and decide if you want to issue a refund to avoid a chargeback.<\/li>
  • Block the shopper.<\/li>
  • Stop the shipment of goods if possible.<\/li><\/ul><\/td>\n<\/tr>\n
Request for Information (RFI)<\/strong>
(optional)<\/td>\n		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 RFI in a timely manner, a chargeback may take place, and money may be withdrawn from your account.

Suggested actions:
  • Provide the requested transactional information to the issuer.<\/li><\/ul><\/td>\n<\/tr>\n
Notification of\u00a0Chargeback (NoC)<\/strong><\/td>\nA chargeback has been initiated by the issuer, and can be defended. The NoC can come after the RFI, or immediately after the payment status is set to Settled<\/strong> or Refunded<\/strong>. Depending on the payment method, the chargeback debit happens a few days after you receive the NoC, or after you defend the dispute. The NoC marks the start of the defense period.

Adyen automatically defends<\/a> chargebacks that do not require action on your part. For example, a dispute can be auto-defended if the issuer opens a dispute on a transaction that was already refunded, or if it is a fraudulent chargeback for which there was a liability shift. If the chargeback is not auto-defended, the dispute goes to the Chargeback<\/strong> stage.

Suggested actions:
  • Review the dispute and decide if you want to defend or accept it.<\/li>
  • If you want to defend, collect and upload the relevant defense documents.<\/li><\/ul><\/td>\n<\/tr>\n
Chargeback<\/strong><\/td>\nThe disputed amount is withdrawn from your account.

Suggested actions:
  • Review the dispute and, if you have not already done so, decide if you want to defend or accept it.<\/li>
  • If you accept the chargeback or fail to upload your defense documents in time, this is the final stage.<\/li><\/ul><\/td>\n<\/tr>\n
Information Supplied<\/strong><\/td>\nAdyen receives the supporting documents and forwards them to the scheme. It is no longer possible to change these documents.<\/td>\n<\/tr>\n
Chargeback Reversed<\/strong><\/td>\nThe disputed amount is transferred back to your account. In this stage, the issuer reviews the defense. If they accept the defense, or the issuer response timeframe expires, this is the final stage.<\/td>\n<\/tr>\n
Pre-arbitration<\/strong>
(only some flows)<\/td>\n		If the issuer declines your defense, they open pre-arbitration, which Adyen will review.

If you are eligible and the dispute flow supports it, you can accept or decline the pre-arbitration case yourself. This requires additional configuration and approval from Adyen. Reach out to our Support Team<\/a> or your Adyen contact for more details.

If you accept the pre-arbitration, the dispute is lost. You receive a second chargeback. If you decline the pre-arbitration, the case can be sent to scheme arbitration. We recommend that you only decline if you are confident that the chargeback is not valid, and that the defense materials provided during the first chargeback defense were sufficient.<\/td>\n<\/tr>\n
Scheme Arbitration<\/strong>
(optional)<\/td>\n		The scheme rules on the chargeback liability based on the information provided throughout chargeback defense timelines. This stage can only occur if you have enabled accepting or declining pre-arbitration yourself.

If the scheme rules in favor of the issuer, you can incur a fee of up to USD 600. This fee is added to the second chargeback.<\/td>\n<\/tr>\n
Second Chargeback<\/strong><\/td>\nA second chargeback occurs when the issuer declines your defense, when you or Adyen accept a pre-arbitration case, or when you decline a pre-arbitration case and scheme arbitration rules in favor of the issuer. You cannot upload defense documents. This is the final stage.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Follow a dispute through the flow<\/h2>\n

You can follow a dispute in your Customer Area<\/a> or listen to webhook messages<\/a> to understand where the dispute is in the flow, find the dispute status, and decide on your next steps.<\/p>\n

Customer Area<\/h3>\n
\n \n\n\n\n\n\n\n\n\n\n\n
Event<\/div><\/th>\n
Where to follow<\/div><\/th>\n
How to follow<\/div><\/th>\n
Details and next steps<\/div><\/th>\n
Example statuses<\/div><\/th>\n<\/tr>\n<\/thead>\n
A dispute is opened on your account.<\/td>\nEmail and\/or Customer Area notification<\/td>\nGo to Notification center<\/strong> > Settings<\/strong><\/td>\nOpen the dispute details via the alert that you receive.<\/td>\nNot applicable<\/td>\n<\/tr>\n
A transaction is charged back.<\/td>\nPayment lifecycle journal type<\/a><\/td>\nGo to Transactions<\/strong> > Payments<\/strong> > PSP reference<\/strong><\/td>\nReview the payment lifecycle of the transaction, including any dispute lifecycle events.<\/td>\n
  • Chargeback<\/li>
  • ChargebackExternally<\/li>
  • ChargebackExternallyWithInfo<\/li>
  • SecondChargeback<\/li>
  • ChargebackReversed<\/li>
  • ChargebackReversedExternallyWithInfo<\/li><\/ul><\/td>\n<\/tr>\n
A dispute is opened on a transaction and Adyen has created a dispute PSP reference.<\/td>\nPayment events type<\/td>\nGo to Transactions<\/strong> > Payments<\/strong> > PSP reference<\/strong><\/td>\nSelect the dispute event to open the dispute details and review the dispute.<\/td>\n
  • Dispute<\/li><\/ul><\/td>\n<\/tr>\n
Detailed dispute information is available.<\/td>\nDispute details<\/td>\nGo to Revenue & risk<\/strong> > Disputes<\/strong> > Dispute PSP reference<\/strong><\/td>\nReview the dispute details to decide if you can or want to take action on the dispute.

Details include, where applicable, the dispute status, a dispute reason and reason code, the creation date, the number of days left to defend, and if the dispute was auto-defended.<\/td>\n
  • Won<\/li>
  • Lost<\/li>
  • Pending<\/li>
  • Responded<\/li>
  • Expired<\/li><\/ul><\/td>\n<\/tr>\n
The dispute moves through the dispute flow.<\/td>\nDispute history<\/td>\nGo to Revenue & risk<\/strong> > Disputes<\/strong> > Dispute PSP reference<\/strong><\/td>\nReview the dispute history to understand the current status in the dispute lifecycle, and when the status changed.<\/td>\n
  • OpenDispute<\/li>
  • RequestForInformation<\/li>
  • NotificationOfChargeback<\/li>
  • Chargeback<\/li>
  • InformationSupplied<\/li>
  • SecondChargeback<\/li>
  • ChargebackReversed<\/li>
  • DisputeDefensePeriodEnded<\/li>
  • OpenPreArbitration<\/li>
  • AcceptPreArbitration<\/li>
  • DeclinePreArbitration<\/li>
  • IssuerPreArbitrationWithdrawn<\/li>
  • SchemeArbitration<\/li>
  • SchemeArbitrationWon<\/li>
  • SchemeArbitrationLost<\/li><\/ul><\/td>\n<\/tr>\n
You want to get insights on dispute performance.<\/td>\nDisputes tab in the Risk & dispute management dashboard<\/a><\/td>\nGo to Insights<\/strong> > Risk & dispute management<\/strong> > Disputes<\/strong><\/td>\nUse the dashboard to assess dispute performance such as win and loss rates. You can filter on a time period, on fraudulent and non-fraudulent disputes, on dispute status, and more.<\/td>\n