Disputes & Chargebacks

A dispute (also called a chargeback) happens when a customer contacts their bank and says they didn't authorize a charge. The bank takes the money back while they investigate.

Customers might dispute a charge because:

• They don't recognize the charge on their statement
• They didn't receive what they ordered
• The product wasn't as described
• Someone stole their card and used it
• They forgot they made the purchase

1. Customer contacts bank - They say "I didn't make this charge"
2. Bank takes money back - The charge amount is removed from your account
3. You get notified - ClapPay sends you a webhook and email
4. You submit evidence - Prove the charge was valid
5. Bank decides - They review everything and pick a winner
6. Case closes - If you win, the money comes back. If not, it's gone

The whole process takes 60-90 days. During that time, the money is "on hold."

When you get a dispute, you have a limited time to respond (usually 7-21 days). Here's what to do:

Step 1: Gather Evidence

Collect everything that proves the charge was valid:

• Order confirmation or receipt
• Shipping tracking and delivery confirmation
• Customer communication (emails, chat logs)
• Proof the customer received and used the product
• Your refund and cancellation policies
• Previous successful orders from this customer

Step 2: Submit Your Response

In the Dashboard:

1. Go to Payments → Disputes
2. Click on the dispute
3. Upload your evidence
4. Write a clear explanation of what happened
5. Submit before the deadline

The best dispute is one that never happens. Here's how to reduce them:

Use a Clear Billing Name

Your billing descriptor is what shows on the customer's credit card statement. Make it recognizable. "ACME STORE" is better than "PYMNT*X39SKL".

Send Receipts and Confirmations

Email customers right after purchase. Include what they bought, when, and how much. This reminds them they made the purchase.

Respond to Customer Questions Fast

Many disputes happen because customers couldn't reach you. Make it easy to contact support and respond quickly.

Refund Before They Dispute

If a customer is unhappy, give them a refund before they go to their bank. Refunds are free. Disputes cost money.

Use Fraud Prevention

• Enable 3D Secure for high-risk transactions
• Use address verification (AVS)
• Check CVV on all transactions
• Be extra careful with international orders

Set up webhooks to know immediately when disputes happen:

app.post('/webhooks/clappay', async (req, res) => {
  const event = req.body;
  
  switch (event.type) {
    case 'charge.dispute.created':
      // New dispute - respond quickly!
      const dispute = event.data.object;
      console.log('New dispute:', dispute.id);
      console.log('Amount:', dispute.amount);
      console.log('Reason:', dispute.reason);
      
      // Alert your team
      await sendDisputeAlert(dispute);
      break;
      
    case 'charge.dispute.closed':
      // Dispute resolved
      const result = event.data.object;
      if (result.status === 'won') {
        console.log('We won the dispute!');
      } else {
        console.log('Dispute lost:', result.id);
      }
      break;
  }
  
  res.status(200).send('OK');
});

Card networks (Visa, Mastercard) monitor dispute rates. If you have too many:

• You may face higher fees
• Your account could be flagged
• In extreme cases, you could lose the ability to accept cards

Target: Keep disputes under 0.9% of transactions. Under 0.5% is good. Under 0.1% is excellent.

Check your dispute rate in Dashboard → Analytics → Disputes.