How can we help?

Why do cardholders file a dispute?

Last updated on June 04, 2019

Once in a while sale transactions just don’t run as smoothly as they should’ve. The cardholder files a dispute, requesting the card issuing bank to reverse the paid amount. This is what we call a chargeback.

Some common reasons which causes cardholders to file a dispute include:

  • Item not received: Cardholders claim that the product or service paid for was not delivered.

  • Fraudulent: This happens when the cardholder claims that they didn’t authorize the charge. This is one of the most common for disputes and can happen if the card was lost or stolen.

  • Item received not as described: The product was delivered but is defective or not as described.

  • Unrecognized transaction: The cardholder has forgotten or does not recognize the charge appearing on their statement.

  • Recurring transaction not canceled as requested

Chargebacks are often initiated by cardholders. But when it comes to lost or stolen cards the bank may automatically file a chargeback on behalf of the cardholder as form of protection while investigation to determine the legitimacy of the chargeback takes place.

Related articles
How do I manage a dispute?
If my customer has withdrawn the dispute, do I still need to provide evidence?
Tips to minimise disputes and chargebacks

Can’t find your answer?

Get in touch with us and we’ll get back to you as soon as possible