Disputes are normal situation for online credit card payment processing. When a card holder has question or not sure, or even may just forget, sometimes want to complain, they can file a dispute with their bank against a particular charge appear on their card statement.
As customer dispute a transaction for different reasons. When merchant receives a disputed transaction, it’s very important to immediately contact the customer to confirm the problem and resolve completely. For payment by credit card, the merchant is also required to submit the order details including: product name, order receipt, trading website, order amount, order date, customer name, customer email and phone number, and courier company and tracking information. This is for providing to the bank and card association, issuing bank check the transaction details. Generally, order details submission is not necessarily solve the dispute completely. As it’s uncertain the exact reason of the card holder dispute. After providing the order information, the transaction is having a possible risk of being charged back later. So sometimes, the merchant is recommended to submit refund to solve the dispute to avoid possible chargeback. If the merchant is able to contact with the customer and ask customer to drop the dispute with their issuing bank. But dispute response time has a limited timeframe. The merchant may not be able to connect with the customer within the time. But in some cases, the transaction is fraudulent which means the dispute is caused by the card is used by other instead of cardholder himself. This situation the merchant is better to refund immediately to close the case. Maintain good customer relationship and quick response to the bank requirement is a good way for resolving online processing issue.