# A customer disputed a card payment and the processor pulled the money back — how do I record the chargeback and what records do I need?
- **[Stripe · Stripe Docs 'How disputes work', retrieved 2026-09-08 · Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, no narrower jurisdiction stated for this sentence · Businesses receiving payments through Stripe]** Stripe defines a dispute as arising when an account owner contacts their bank to contest a payment made to the business, for any of a number of possible reasons. → [CG-MCE-037#S01](#s-CG-MCE-037-S01)
- **[Stripe · Stripe Docs 'How disputes work', retrieved 2026-09-08 · Stripe users generally; page retrieved with Stripe Docs country selector set to Canada · Businesses receiving card payments through Stripe]** Stripe debits the business's Stripe balance for the disputed amount plus a dispute fee — the fee being a separate amount from the reversed sale. → [CG-MCE-037#S04](#s-CG-MCE-037-S04)
- **[Square · Square Support Center, United States (English) · United States · Square sellers with a Square balance and linked bank account]** Square states that when a payment card issuer (such as Visa or Mastercard) notifies Square of a dispute the issuer also debits Square's account to hold the disputed funds, and that Square notifies the seller right away and immediately holds the disputed funds by withholding them from the seller's Square balance or debiting the seller's linked bank account. → [CG-MCE-037#S28](#s-CG-MCE-037-S28)
- **[Square · Square Support Center, United States (English) · United States (Square Support Center, United States edition) · Sellers taking card payments through Square]** Square states that during disputes the bank is looking for any supporting evidence the seller may have about the transaction, giving as examples contracts, invoices, email correspondence, terms of service, and signed proof of satisfactory delivery. → [CG-MCE-037#S36](#s-CG-MCE-037-S36)
- **[Stripe · Current online documentation as retrieved 2026-09-08 · Global — Stripe platform documentation, page served in the Canada / English (United States) locale · Businesses processing card payments through Stripe]** Stripe states that a business receiving a dispute notification has a limited window to respond, usually 7 to 21 days depending on the card network, and that failing to respond before the deadline means the business automatically loses the dispute and cannot retrieve the disputed funds. → [CG-MCE-037#S15](#s-CG-MCE-037-S15)
## What this page establishes
- How processors describe a chargeback and the fee they apply — Established
- Bookkeeping treatment of a chargeback, its fee and a later reinstatement — Not established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Where the reversal and fee show up in settlement reporting and payouts — Partly established
- The stages a dispute passes through and when money comes back — Partly established
- What processors and card networks expect you to be able to submit — Established
- Response deadlines and how you are notified — Established
- What a chargeback is, and why it is not a refund you chose to give — Partly established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation.)
- Reversing the sale or carrying the reversal separately — Not established (Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference.)
- The chargeback fee is a separate amount from the money taken back — Partly established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation.)
- When the reversal and fee arrive netted inside a payout — Partly established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation.)
- Carrying the item while the dispute is still open — Partly established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: high quality professional secondary reference, official platform documentation.)
- Recording the outcome, whichever way it goes — Established (Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation.)
- The evidence file you must be able to produce — Partly established
- The deadline is set outside your business — how you find out in time — Partly established (Required authority: official platform documentation. Highest achieved: authoritative lender insurer or program documentation, official platform documentation.)
## What a chargeback is, and why it is not a refund you chose to give
- Stripe defines a dispute as arising when an account owner contacts their bank to contest a payment made to the business, for any of a number of possible reasons. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, no narrower jurisdiction stated for this sentence, entity_scope: Businesses receiving payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08)_ `CG-MCE-037#S01`
> “A dispute occurs when an account owner contacts their bank to contest a payment to you for a number of possible reasons .” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Introduction (untitled lead paragraph, above 'Before the dispute'); TEXT.txt line 73. Verified 2026-09-09.
- During the dispute the card network pulls the disputed funds from the business's Stripe balance. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: a formal dispute/chargeback has been initiated)_ `CG-MCE-037#S03`
> “The card network pulls the funds for the dispute from your Stripe balance.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute', bulleted list under 'During this process:'; TEXT.txt line 108. Verified 2026-09-09.
- While a dispute is open, the business cannot issue a refund outside the dispute process — a refund and a dispute are separate mechanisms and the refund route is blocked. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: while the dispute is open)_ `CG-MCE-037#S05`
> “You can’t issue a refund outside the dispute process while the dispute is open.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Receive a dispute'; TEXT.txt line 116. Verified 2026-09-09.
- Square describes a payment dispute, commonly called a chargeback, as one of the risks of accepting card payments. _(jurisdiction: United States, entity_scope: Square sellers accepting card payments, platform: Square, platform_edition: Square Support Center, United States (English))_ `CG-MCE-037#S26`
> “One of the risks of accepting card payments is receiving a payment dispute, commonly known as a chargeback.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); About payment disputes. Verified 2026-09-09.
- Square states that when a payment card issuer (such as Visa or Mastercard) notifies Square of a dispute the issuer also debits Square's account to hold the disputed funds, and that Square notifies the seller right away and immediately holds the disputed funds by withholding them from the seller's Square balance or debiting the seller's linked bank account. _(jurisdiction: United States, entity_scope: Square sellers with a Square balance and linked bank account, platform: Square, platform_edition: Square Support Center, United States (English), conditions: issuers named as examples ('such as'), not an exhaustive list)_ `CG-MCE-037#S28`
> “When the payment card issuer (such as Visa, Mastercard, etc.) notifies us of your dispute, they also debit Square’s account to hold the disputed funds. We let you know of the dispute right away and also place an immediate hold on the disputed funds by withholding funds from your Square balance or debiting your linked bank account.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Before you begin. Verified 2026-09-09.
_Partly established. Established: money already settled to the business being withdrawn at the cardholder's instigation through the processor (S03, S28); how that differs in origin from a refund the business chooses to issue (S01); how that differs in control from a refund the business chooses to issue (S05, S07). Missing: how that differs in record from a refund the business chooses to issue._
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation._
## Reversing the sale or carrying the reversal separately
- The sales returns and allowances line item aggregates two general ledger accounts — a sales returns account and a sales allowances account — and both are contra accounts, meaning they offset gross sales rather than being posted into the gross sales account itself. _(jurisdiction: US (US publisher of US CPE material; the article states no other jurisdiction), entity_scope: Businesses using a general ledger with a gross sales account, conditions: Describes conventional ledger structure; the article states no criterion for choosing between contra-account treatment and reversing the original sale)_ `CG-MCE-037#S51`
> “This line item is the aggregation of two general ledger accounts , which are the sales returns account and the sales allowances account. Both of these accounts are contra accounts , which means that they offset gross sales.” — [AccountingTools, Inc. — Sales returns and allowances definition](https://www.accountingtools.com/articles/sales-returns-and-allowances), 2026-08-25; Heading "Accounting for Sales Returns and Allowances", first two sentences. Verified 2026-09-09.
_Not established from an authoritative source._
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference._
## The chargeback fee is a separate amount from the money taken back
- Stripe debits the business's Stripe balance for the disputed amount plus a dispute fee — the fee being a separate amount from the reversed sale. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: on initiation of a dispute)_ `CG-MCE-037#S04`
> “Stripe in turn debits your Stripe balance for the disputed amount plus a dispute fee.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Receive a dispute'; TEXT.txt line 115. Verified 2026-09-09.
- Countering a dispute triggers a dispute countered fee in addition to the dispute received fee, so two distinct fees can arise on one dispute. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada (excluding Mexico and Japan, per the 'Regional considerations' note), entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: the business counters the dispute)_ `CG-MCE-037#S09`
> “If you counter a dispute, a dispute countered fee applies, in addition to the dispute received fee.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Dispute fees'; TEXT.txt line 136. Verified 2026-09-09.
- Stripe returns the dispute countered fee if the business wins the dispute, and never returns the dispute received fee unless the business's Stripe contract states otherwise. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada; the same section states Mexico-specific treatment of the received fee and that the countered fee does not apply in Mexico or Japan, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: countered fee returned only on a win; unless otherwise stated in the business's Stripe contract)_ `CG-MCE-037#S10`
> “Stripe returns the dispute countered fee if you win the dispute. Unless otherwise stated in your Stripe contract, we never return the dispute received fee.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Dispute fees'; TEXT.txt line 137. Verified 2026-09-09.
_Partly established. Established: how the chargeback fee is recorded separately from the reversed sale amount (S04). Missing: why combining the fee and the reversed sale amount prevents the business from seeing what disputes are costing it._
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation._
## When the reversal and fee arrive netted inside a payout
- When a customer disputes a charge, Stripe deducts the disputed amount from the account's Stripe balance. _(jurisdiction: Stripe platform-wide documentation, served in the Canada / English (United States) locale edition, entity_scope: Stripe accounts whose charges are disputed by customers, platform: Stripe, platform_edition: current live Stripe Docs page, no version stated)_ `CG-MCE-037#S21`
> “When a customer disputes a charge , Stripe deducts the disputed amount from your balance.” — [Stripe, Inc. — Reporting categories and types](https://docs.stripe.com/reports/reporting-categories), current live Stripe Docs page (no version or revision date printed on the page); served in the Canada / English (United States) locale; fetched 2026-09-08; Reporting categories reference > Payments-related reporting categories > dispute. Verified 2026-09-09.
- The amount of each Stripe payout reflects the account's available balance at the moment the payout was created. _(jurisdiction: Stripe accounts in the countries the page lists; page rendered for the Canada account region, entity_scope: Stripe account holders, platform: Stripe, platform_edition: docs.stripe.com/payouts, live documentation fetched 2026-09-08)_ `CG-MCE-037#S24`
> “Each payout reflects your available account balance at the time it was created.” — [Stripe, Inc. — Receive payouts](https://docs.stripe.com/payouts), current live documentation at https://docs.stripe.com/payouts, fetched 2026-09-08; page rendered in the Canada account-region / English (United States) view; no explicit last-updated stamp on page; Negative payouts. Verified 2026-09-09.
- See above: Square states that when a payment card issuer (such as Visa or Mastercard) notifies Square of a dispute the issuer also debits Square's account to hold the disputed funds, and that Square notifies the seller right away and immediately holds the disputed funds by withholding them from the seller's Square balance or debiting the seller's linked bank account. ([CG-MCE-037#S28](#s-CG-MCE-037-S28))
- Where the case is resolved in the customer's favour, the held funds go to the customer, the payment's processing fees are not refunded to the seller, and if the Square balance is insufficient Square debits the seller's linked bank account for the disputed amount. _(jurisdiction: United States, entity_scope: Square sellers with a Square balance and linked bank account, platform: Square, platform_edition: Square Support Center, United States (English), conditions: bank debit applies only where the Square balance is insufficient)_ `CG-MCE-037#S34`
> “If the case is resolved in your customer’s favor, the held funds will be returned to your customer. The processing fees for the payment aren’t refunded back to you. If the funds in your Square balance aren’t enough to cover the amount of the dispute, we will debit your linked bank account to cover the disputed amount.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Payments disputes process > Step 4: Review the outcomes of your dispute > Resolved in your customer’s favor. Verified 2026-09-09.
- Where Square cannot hold the disputed amount from the Square balance or by debiting the bank account, the seller's balance reflects the negative disputed amount and future payments taken go towards that outstanding balance. _(jurisdiction: United States, entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English), conditions: applies only where the hold and bank debit are unsuccessful)_ `CG-MCE-037#S35`
> “If we are unable to successfully hold the disputed amount from your Square balance or from debiting your bank account, your balance will then reflect the negative disputed amount. Any future payments you take will go towards the outstanding balance.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Payments disputes process > Step 5: Negative dispute balance (if applicable). Verified 2026-09-09.
_Partly established. Established: what that does to the balance in the account that holds card settlements (S21, S28, S35). Missing: how the reversal and its fee appear when they are netted inside a later payout rather than debited directly._
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation._
## Carrying the item while the dispute is still open
- The funds pulled for the dispute are held for the whole time the dispute is open. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: while the dispute is open)_ `CG-MCE-037#S06`
> “These funds are held for the entire duration of the dispute.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute', bulleted list under 'During this process:'; TEXT.txt line 109. Verified 2026-09-09.
- Stripe facilitates the business's case throughout the dispute process but has no influence over the outcome, which is at the sole discretion of the account owner's bank. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08)_ `CG-MCE-037#S07`
> “Throughout this process, Stripe facilitates your case, but doesn’t have influence over the outcome, which is at the sole discretion of the account owner’s bank.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Introduction (untitled lead section), immediately after the four-item Stripe list; TEXT.txt line 79. Verified 2026-09-09.
- Although a dispute outcome is normally final, in rare cases the status can change from lost to won; Stripe then labels it a late win and returns the funds to the business's balance. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: rare cases only)_ `CG-MCE-037#S13`
> “Although the outcome of a dispute is normally final, in rare cases the status can change from lost to won . When this occurs, Stripe labels the dispute as a late win and returns the funds to your balance.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'After the decision' > 'Late-win disputes'; TEXT.txt line 173. Verified 2026-09-09.
- The article defines a contingent liability as a potential obligation that may arise depending on the outcome of a future event, uncertain because it depends on circumstances not yet resolved. _(jurisdiction: United States (US commercial accounting publisher; the article names no jurisdiction of its own), entity_scope: entities preparing financial statements, unrestricted by the article, accounting_basis: accrual financial statements (implied by the article; not stated), conditions: definition only, not a recognition rule)_ `CG-MCE-037#S52`
> “A contingent liability is a potential obligation that may arise depending on the outcome of a future event. The obligation is uncertain because it depends on circumstances that have not yet been resolved.” — [AccountingTools, Inc. (author Steven Bragg) — Contingent liability definition](https://www.accountingtools.com/articles/contingent-liability), 2026-03-09; Section "What is a Contingent Liability?", opening paragraph. Verified 2026-09-09.
- The article instructs that a contingent liability be recorded when it is probable that a loss will occur and the amount of the loss can be reasonably estimated; both conditions are stated together. _(jurisdiction: United States (US commercial accounting publisher; the article names no jurisdiction of its own), entity_scope: entities preparing financial statements, unrestricted by the article, accounting_basis: accrual financial statements (implied by the article; not stated), conditions: loss probable; amount reasonably estimable)_ `CG-MCE-037#S53`
> “Record a contingent liability when it is probable that a loss will occur, and you can reasonably estimate the amount of the loss.” — [AccountingTools, Inc. (author Steven Bragg) — Contingent liability definition](https://www.accountingtools.com/articles/contingent-liability), 2026-03-09; Section "Accounting for Contingent Liabilities", first bullet "Record a contingent liability". Verified 2026-09-09.
- The article instructs that the existence of a contingent liability be disclosed in the notes accompanying the financial statements if it is reasonably possible but not probable, or if it is probable but the amount cannot be estimated. _(jurisdiction: United States (US commercial accounting publisher; the article names no jurisdiction of its own), entity_scope: entities preparing financial statements, unrestricted by the article, accounting_basis: accrual financial statements (implied by the article; not stated), conditions: reasonably possible but not probable; or probable but amount not estimable)_ `CG-MCE-037#S54`
> “Disclose the existence of a contingent liability in the notes accompanying the financial statements if the liability is reasonably possible but not probable, or if the liability is probable, but you cannot estimate the amount.” — [AccountingTools, Inc. (author Steven Bragg) — Contingent liability definition](https://www.accountingtools.com/articles/contingent-liability), 2026-03-09; Section "Accounting for Contingent Liabilities", second bullet "Disclose a contingent liability". Verified 2026-09-09.
_Partly established. Established: the position is provisional while the dispute is open (S06). Missing: how the item is carried in the books until the outcome is known._
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: high quality professional secondary reference, official platform documentation._
## Recording the outcome, whichever way it goes
- See above: Stripe returns the dispute countered fee if the business wins the dispute, and never returns the dispute received fee unless the business's Stripe contract states otherwise. ([CG-MCE-037#S10](#s-CG-MCE-037-S10))
- Where the dispute is overturned in the business's favour, Stripe passes the returned chargeback amount back to the business. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: issuer overturns the dispute in the business's favour)_ `CG-MCE-037#S11`
> “Stripe passes this amount back to you.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Dispute timing', nested list under 'Overturns the dispute in your favor:'; TEXT.txt line 126. Verified 2026-09-09.
- Where the issuer upholds the dispute in the cardholder's favour, no further money movement occurs from the business's perspective. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08, conditions: issuer upholds the dispute in the cardholder's favour)_ `CG-MCE-037#S12`
> “No money moves from your perspective.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'During the dispute' > 'Dispute timing', nested list under 'Upholds the dispute in their cardholder’s favor:'; TEXT.txt line 128. Verified 2026-09-09.
- See above: Although a dispute outcome is normally final, in rare cases the status can change from lost to won; Stripe then labels it a late win and returns the funds to the business's balance. ([CG-MCE-037#S13](#s-CG-MCE-037-S13))
- Where the customer's bank resolves the dispute in the seller's favour, Square releases the disputed funds back to the seller, including the processing fees. _(jurisdiction: United States, entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English), conditions: on notice from the customer's bank that the dispute is resolved in the seller's favour)_ `CG-MCE-037#S33`
> “If we receive notice from your customer’s bank and the dispute is resolved in your favor, Square will release the disputed funds back to you — including the processing fees.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Payments disputes process > Step 4: Review the outcomes of your dispute > Resolved in your favor. Verified 2026-09-09.
- See above: Where the case is resolved in the customer's favour, the held funds go to the customer, the payment's processing fees are not refunded to the seller, and if the Square balance is insufficient Square debits the seller's linked bank account for the disputed amount. ([CG-MCE-037#S34](#s-CG-MCE-037-S34))
_Required authority: authoritative professional or accounting standard, official platform documentation. Highest achieved: official platform documentation._
## The evidence file you must be able to produce
- A business has only one opportunity to submit its dispute response; Stripe immediately forwards the response and all supporting files to the issuing bank, and the response cannot afterwards be edited nor further files submitted, so all evidence must be assembled before submitting. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe Dashboard, platform_edition: Current online documentation as retrieved 2026-09-08)_ `CG-MCE-037#S17`
> “You’ve only one opportunity to submit your response. Stripe immediately forwards your response and all supporting files to the issuing bank. You can’t edit the response or submit additional files, so make sure you’ve assembled all your evidence before you submit.” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Submit evidence through the Dashboard — opening paragraph. Verified 2026-09-09.
- The business is told to keep a record of all communication with the customer during the dispute process, because that record provides evidence to submit with the response. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe, platform_edition: Current online documentation as retrieved 2026-09-08)_ `CG-MCE-037#S18`
> “Be sure to keep a record of all communication with your customer during this process, as it provides evidence to submit with your response.” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Understand the complaint — final paragraph. Verified 2026-09-09.
- For fraudulent disputes that might be covered by the liability shift rule, Stripe automatically supplies most of the evidence, such as the Electronic Commerce Indicator (ECI) from 3D Secure. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe, platform_edition: Current online documentation as retrieved 2026-09-08, conditions: fraudulent disputes only; only those that might be covered by the liability shift rule; ECI given as an example, not an exhaustive list)_ `CG-MCE-037#S19`
> “For fraudulent disputes that might be covered by the liability shift rule, Stripe automatically provides most of the evidence, such as the Electronic Commerce Indicator (ECI) from 3D Secure” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Fraudulent disputes > Liability shift. Verified 2026-09-09.
- The background-evidence sections of the Stripe response form can include shipping details, refund policy details, customer details and product details (a list the document leaves open), and where those fields are not pre-populated the business is to include as much information as it can before submitting. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe Dashboard dispute response form, platform_edition: Current online documentation as retrieved 2026-09-08, conditions: sections listed are examples of what the sections "can include", not a closed set; sections vary by dispute type and first-page answers)_ `CG-MCE-037#S20`
> “If any of these fields aren’t pre-populated, include as much information as you can before you submit your response. These sections can include:
Shipping details
Refund policy details
Customer details
Product details” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Submit evidence through the Dashboard > "Background evidence" — list of sections. Verified 2026-09-09.
- Square states that during disputes the bank is looking for any supporting evidence the seller may have about the transaction, giving as examples contracts, invoices, email correspondence, terms of service, and signed proof of satisfactory delivery. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Sellers taking card payments through Square, platform: Square, platform_edition: Square Support Center, United States (English), conditions: list is introduced by 'such as' and is open-ended)_ `CG-MCE-037#S36`
> “During disputes, the bank is looking for any supporting evidence you may have about the transaction, such as contracts, invoices, email correspondence, terms of service, or signed proof of satisfactory delivery.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Before you begin", second paragraph. Verified 2026-09-09.
- Square describes an invoice as a written document that includes a description of the goods or services and the payment amount. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Square sellers responding to non-fraud disputes, platform: Square, platform_edition: Square Support Center, United States (English), conditions: descriptive definition, not a content requirement)_ `CG-MCE-037#S38`
> “An invoice is a written document that includes a description of goods/services and the payment amount.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Documents to submit for non-fraud disputes" > "Invoice". Verified 2026-09-09.
- Square instructs sellers to collect proof of completion once a good is delivered or a service completed, and says this may be a delivery confirmation displaying the buyer's full address for goods, or a certificate of completion for services. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Square sellers delivering goods or completing services, platform: Square, platform_edition: Square Support Center, United States (English), conditions: examples hedged with 'may be'; not stated as the only acceptable forms)_ `CG-MCE-037#S39`
> “When you have finished the delivery of a good or the completion of a service, collect proof of that completion. For goods, this may be a delivery confirmation that displays the full address of the buyer. For services, this may be a certificate of completion.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Documents to submit for non-fraud disputes" > "Proof of Delivery or Service Completion". Verified 2026-09-09.
- Square states that where goods or services are delivered before an invoice is paid, the seller can toggle on Goods and services confirmation when creating the invoice, which requires the customer to confirm acceptance of the goods and services with satisfaction in order to pay it. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Square sellers using Square Invoices, platform: Square, platform_edition: Square Support Center, United States (English), conditions: goods or services delivered before invoice payment; toggle enabled at invoice creation; covers only final payments taken after delivery)_ `CG-MCE-037#S40`
> “If the goods or services are delivered before an invoice is paid, you can toggle on Goods and services confirmation when creating the invoice. In order to pay for an invoice, your customer is required to confirm they accept the goods and services with satisfaction.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Documents to submit for non-fraud disputes" > "Proof of Delivery or Service Completion" > "Before invoice payment". Verified 2026-09-09.
- Square instructs sellers to create evidence that the cancellation policy was acknowledged before the sale by each specific customer on each transaction, by putting the written policy on contracts or receipts and requiring a signature on those documents. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English))_ `CG-MCE-037#S41`
> “Create evidence that this policy was acknowledged before the sale by each specific customer on each transaction by including a written version of your cancellation policy on any contracts or receipts and requiring a signature on these documents.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Documents to submit for non-fraud disputes" > "Cancellation policy". Verified 2026-09-09.
- Square encourages sellers who have tried to resolve issues related to the dispute, or who had to postpone or cancel a delivery, to share relevant screenshots or photos of those conversations. _(jurisdiction: United States (Square Support Center, United States edition), entity_scope: Square sellers responding to a dispute, platform: Square, platform_edition: Square Support Center, United States (English), conditions: conditional on an effort to resolve, or a postponed or cancelled delivery)_ `CG-MCE-037#S42`
> “If you have made an effort to resolve issues that may relate to the dispute — or had to postpone or cancel a delivery — we encourage you to share relevant screenshots or photos of these conversations.” — [Block, Inc. (Square Support Center, United States) — Prepare documents to challenge disputes](https://squareup.com/help/us/en/article/7891-your-square-document-request-guide), Current help article as retrieved 2026-09-08; no article date shown; Section "Communication with your customers", first paragraph. Verified 2026-09-09.
- For merchandise-related Disputes under Condition 13.1, one accepted form of Dispute Response evidence is that the Cardholder or an authorized person received the merchandise at the agreed location or by the agreed date/time, including (among other things) proof of delivery containing the full delivery address — tracking with a partial address is not permitted — or, for Card-Absent Transactions where merchandise was collected, a pick-up document with acknowledgment from the Cardholder or authorized person such as a signature, PIN or collection code. _(jurisdiction: All — the table's Country/Region label "All" means the rule applies to a Transaction between Members anywhere in the world, entity_scope: Visa Members acting as Acquirers (on behalf of their Merchants), platform: Visa payment network, platform_edition: Visa Core Rules and Visa Product and Service Rules, 18 April 2026 (Visa Public edition), conditions: Dispute Condition 13.1 only; the sub-list is introduced by "including any of the following" and is therefore open)_ `CG-MCE-037#S50`
> “For disputes related to merchandise, the Cardholder or authorized person
received the merchandise at the agreed location or by the agreed date/time,
including any of the following:
– For merchandise that was delivered, proof of delivery that contains the full
delivery address (tracking with partial address is not permitted)
– For Card-Absent Transactions where the merchandise was collected, pick
up document including acknowledgment from Cardholder or authorized
person (for example: signature, PIN, collection code)” — [Visa Inc. — Visa Core Rules and Visa Product and Service Rules](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf), 2026-04-18; Chapter 11 Dispute Resolution, §11.10.2.6, Table 11-94: Dispute Condition 13.1 – Dispute Response Processing Requirements, Country/Region "All" (ID# 0030318), printed page 751. Verified 2026-09-09.
_Partly established. Established: the record of the sale (S36); evidence that the goods or service were delivered (S36, S39, S50); the terms presented at the time of sale (S20, S36, S41); the communications with the customer (S18, S36). Missing: evidence of the cardholder's authorisation._
## The deadline is set outside your business — how you find out in time
- Stripe states that a business receiving a dispute notification has a limited window to respond, usually 7 to 21 days depending on the card network, and that failing to respond before the deadline means the business automatically loses the dispute and cannot retrieve the disputed funds. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe, platform_edition: Current online documentation as retrieved 2026-09-08, conditions: window length varies by card network; "usually 7 to 21 days" is stated as a typical range, not a fixed rule)_ `CG-MCE-037#S15`
> “When you receive a dispute notification, you have a limited window to respond (usually 7 to 21 days, depending on the card network). If you don’t respond before the deadline, you automatically lose the dispute and can’t retrieve the disputed funds.” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Respond to disputes — opening paragraph, immediately under the page title (before "Automatically manage disputes in the Dashboard"). Verified 2026-09-09.
- Stripe notifies the business of a dispute through the channels listed: the business's email address, the Stripe Dashboard, a charge.dispute.created event where the integration is set up to receive events to an event destination, and a push notification where the business is subscribed. _(jurisdiction: Global — Stripe platform documentation, page served in the Canada / English (United States) locale, entity_scope: Businesses processing card payments through Stripe, platform: Stripe, platform_edition: Current online documentation as retrieved 2026-09-08, conditions: event notification only if the integration is set up to receive events to an event destination; push notification only if the business is subscribed)_ `CG-MCE-037#S16`
> “We notify you of a dispute through the following channels:
Your email address
The Stripe Dashboard
A charge . dispute . created event (if your integration is set up to receive events to an event destination )
A push notification (if you’re subscribed)” — [Stripe, Inc. — Respond to disputes](https://docs.stripe.com/disputes/responding), Current online documentation as retrieved 2026-09-08; page served in the Canada / English (United States) locale; no page date shown; Respond to disputes — opening section, notification channel list (before "Automatically manage disputes in the Dashboard"). Verified 2026-09-09.
- See above: A business has only one opportunity to submit its dispute response; Stripe immediately forwards the response and all supporting files to the issuing bank, and the response cannot afterwards be edited nor further files submitted, so all evidence must be assembled before submitting. ([CG-MCE-037#S17](#s-CG-MCE-037-S17))
- When a customer files a dispute with their bank, Square notifies the seller of the initial dispute by email, in Square Dashboard, and by in-app notification. _(jurisdiction: United States, entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English))_ `CG-MCE-037#S29`
> “When your customer files a dispute with their bank, we notify you of the initial dispute via email, Square Dashboard, and in-app notifications.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Payments disputes process > Step 1: Review the information request form. Verified 2026-09-09.
- A Square seller has seven days from receiving the initial dispute notification email to submit their information. _(jurisdiction: United States, entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English), conditions: period runs from receipt of the initial notification email)_ `CG-MCE-037#S30`
> “Once you receive the initial notification email, you will have seven days to submit your information.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Payments disputes process > Step 1: Review the information request form. Verified 2026-09-09.
- Square account owners can enable SMS notifications to receive updates about new or ongoing disputes for each business location. _(jurisdiction: United States, entity_scope: Square account owners, per business location, platform: Square, platform_edition: Square Support Center, United States (English), conditions: set in Square Dashboard under Orders & payments > Disputes > Settings > Notifications)_ `CG-MCE-037#S31`
> “Account owners can enable SMS notifications to receive updates about any new or ongoing disputes for each business location.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Before you begin. Verified 2026-09-09.
- Square notifies the seller of a dispute, and the seller's disputes report shows the description of why the customer initiated the dispute, the information the bank needs to decide the case, and the deadline for sending the seller's information to Square. _(jurisdiction: United States, entity_scope: Square sellers using Square payment processing (US English edition of the Square Support Center), platform: Square (Square Dashboard dispute reports), platform_edition: Square Support Center United States (English), article as retrieved 2026-09-08, conditions: applies once Square has notified the seller of a dispute)_ `CG-MCE-037#S43`
> “When Square notifies you of a dispute, you can look for information about the dispute on your disputes report. You will find the description of why your customer has initiated the dispute, the information the bank needs to make their decision on the case, and the deadline for sending us your information.” — [Block, Inc. (Square Support Center, United States) — View dispute reports](https://squareup.com/help/us/en/article/8361-view-dispute-reports), Square Support Center, United States (English) edition; © 2026 Block, Inc.; current help article as retrieved 2026-09-08, no article date shown; Section "About dispute reports". Verified 2026-09-09.
- If a Member does not respond through Visa Resolve Online within the specified timeframe for an action, or accepts responsibility for the Dispute, the Dispute cycle is considered closed and that Member is responsible for the last amount received by the opposing Member. _(jurisdiction: Global — the Visa payment network worldwide; regional or country-specific rules apply only in the relevant region or country, entity_scope: Visa Members (Issuer and Acquirer) in a Dispute cycle, platform: Visa payment network (Visa Resolve Online), platform_edition: Visa Core Rules and Visa Product and Service Rules, 18 April 2026 (Visa Public edition), conditions: footnote 1 states this also applies where the Member does not respond to a pre-Compliance attempt)_ `CG-MCE-037#S47`
> “If a Member does not respond through Visa Resolve Online (VROL) within the specified timeframe for
an action,1 or accepts responsibility for the Dispute, the Dispute cycle will be considered closed and
that Member will be responsible for last amount received by the opposing Member.” — [Visa Inc. — Visa Core Rules and Visa Product and Service Rules](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf), 2026-04-18; Chapter 11 Dispute Resolution, §11.2.1 Dispute Resolution Process General Requirements (ID# 0030211), printed page 668. Verified 2026-09-09.
_Partly established. Established: the response operates against a deadline set by the processor and the card network (S15, S30, S43). Missing: the business needs a defined routine to detect the reversal and assemble the file within that deadline._
_Required authority: official platform documentation. Highest achieved: authoritative lender insurer or program documentation, official platform documentation._
## How processors describe a chargeback and the fee they apply
- See above: Stripe defines a dispute as arising when an account owner contacts their bank to contest a payment made to the business, for any of a number of possible reasons. ([CG-MCE-037#S01](#s-CG-MCE-037-S01))
- See above: During the dispute the card network pulls the disputed funds from the business's Stripe balance. ([CG-MCE-037#S03](#s-CG-MCE-037-S03))
- See above: Stripe debits the business's Stripe balance for the disputed amount plus a dispute fee — the fee being a separate amount from the reversed sale. ([CG-MCE-037#S04](#s-CG-MCE-037-S04))
- See above: While a dispute is open, the business cannot issue a refund outside the dispute process — a refund and a dispute are separate mechanisms and the refund route is blocked. ([CG-MCE-037#S05](#s-CG-MCE-037-S05))
- Square states that it charges no dispute-management fee for chargebacks and that it covers the fee for every dispute the seller and Square work together to challenge. _(jurisdiction: United States, entity_scope: Square sellers, platform: Square, platform_edition: Square Support Center, United States (English), conditions: stated of dispute management services; says nothing about the payment's processing fees)_ `CG-MCE-037#S27`
> “There are no fees for dispute management services for chargebacks — we cover the fee for every dispute that we work together to challenge.” — [Block, Inc. (Square Support Center, United States) — Manage payment disputes](https://squareup.com/help/us/en/article/3882-payment-disputes-walkthrough), 2026-09-08 (as retrieved; article carries no visible date); Before you begin. Verified 2026-09-09.
- See above: Square states that when a payment card issuer (such as Visa or Mastercard) notifies Square of a dispute the issuer also debits Square's account to hold the disputed funds, and that Square notifies the seller right away and immediately holds the disputed funds by withholding them from the seller's Square balance or debiting the seller's linked bank account. ([CG-MCE-037#S28](#s-CG-MCE-037-S28))
## Bookkeeping treatment of a chargeback, its fee and a later reinstatement
_Not established from an authoritative source._
_Required authority: authoritative professional or accounting standard. Highest achieved: high quality professional secondary reference, official platform documentation._
## Where the reversal and fee show up in settlement reporting and payouts
- See above: When a customer disputes a charge, Stripe deducts the disputed amount from the account's Stripe balance. ([CG-MCE-037#S21](#s-CG-MCE-037-S21))
- Balance transactions in the dispute reporting category appear in the 'Disputes' section of Stripe's monthly report. _(jurisdiction: Stripe platform-wide documentation, served in the Canada / English (United States) locale edition, entity_scope: Stripe accounts receiving the monthly report, platform: Stripe, platform_edition: current live Stripe Docs page, no version stated)_ `CG-MCE-037#S22`
> “Sections in the monthly report: Disputes” — [Stripe, Inc. — Reporting categories and types](https://docs.stripe.com/reports/reporting-categories), current live Stripe Docs page (no version or revision date printed on the page); served in the Canada / English (United States) locale; fetched 2026-09-08; Reporting categories reference > Payments-related reporting categories > dispute. Verified 2026-09-09.
- See above: The amount of each Stripe payout reflects the account's available balance at the moment the payout was created. ([CG-MCE-037#S24](#s-CG-MCE-037-S24))
- See above: Square states that when a payment card issuer (such as Visa or Mastercard) notifies Square of a dispute the issuer also debits Square's account to hold the disputed funds, and that Square notifies the seller right away and immediately holds the disputed funds by withholding them from the seller's Square balance or debiting the seller's linked bank account. ([CG-MCE-037#S28](#s-CG-MCE-037-S28))
- See above: Where Square cannot hold the disputed amount from the Square balance or by debiting the bank account, the seller's balance reflects the negative disputed amount and future payments taken go towards that outstanding balance. ([CG-MCE-037#S35](#s-CG-MCE-037-S35))
_Partly established. Established: how a chargeback and its fee appear in a processor's settlement reporting (S22). Missing: how a chargeback and its fee appear in a processor's payouts; when a chargeback and its fee are netted against a later transfer._
## The stages a dispute passes through and when money comes back
- See above: The funds pulled for the dispute are held for the whole time the dispute is open. ([CG-MCE-037#S06](#s-CG-MCE-037-S06))
- See above: Stripe returns the dispute countered fee if the business wins the dispute, and never returns the dispute received fee unless the business's Stripe contract states otherwise. ([CG-MCE-037#S10](#s-CG-MCE-037-S10))
- See above: Where the dispute is overturned in the business's favour, Stripe passes the returned chargeback amount back to the business. ([CG-MCE-037#S11](#s-CG-MCE-037-S11))
- See above: Where the issuer upholds the dispute in the cardholder's favour, no further money movement occurs from the business's perspective. ([CG-MCE-037#S12](#s-CG-MCE-037-S12))
- See above: Where the customer's bank resolves the dispute in the seller's favour, Square releases the disputed funds back to the seller, including the processing fees. ([CG-MCE-037#S33](#s-CG-MCE-037-S33))
- The Visa Rules define a Dispute as a Transaction that an Issuer returns to an Acquirer. _(jurisdiction: Global — the Visa payment network worldwide, entity_scope: Visa Members (Issuers and Acquirers), platform: Visa payment network, platform_edition: Visa Core Rules and Visa Product and Service Rules, 18 April 2026 (Visa Public edition), conditions: glossary definition, not an operative requirement)_ `CG-MCE-037#S44`
> “A Transaction that an Issuer returns to an Acquirer.” — [Visa Inc. — Visa Core Rules and Visa Product and Service Rules](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf), 2026-04-18; Glossary, term "Dispute" (ID# 0029463), printed page 854. Verified 2026-09-09.
- For Dispute categories 12 (Processing Errors) and 13 (Consumer Disputes), the stage that answers the Dispute is the Dispute Response, which the Acquirer may initiate as specified under the applicable Dispute condition; it does not apply if the Merchant accepted the Dispute through Rapid Dispute Resolution. _(jurisdiction: Global — the Visa payment network worldwide; regional or country-specific rules apply only in the relevant region or country, entity_scope: Visa Members acting as Acquirers (on behalf of their Merchants), platform: Visa payment network, platform_edition: Visa Core Rules and Visa Product and Service Rules, 18 April 2026 (Visa Public edition), conditions: applies to Dispute category 12 (Processing Errors) and Dispute category 13 (Consumer Disputes))_ `CG-MCE-037#S45`
> “The Acquirer may initiate a Dispute Response as specified under the
applicable Dispute condition.
This does not apply if the Merchant accepted the Dispute through Rapid
Dispute Resolution.” — [Visa Inc. — Visa Core Rules and Visa Product and Service Rules](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf), 2026-04-18; Chapter 11 Dispute Resolution, §11.2.3, Table 11-2: Dispute Resolution Process Steps – Category 12 (Processing Errors) and Category 13 (Consumer Disputes), row "Dispute Response" (ID# 0030213), printed page 671. Verified 2026-09-09.
_Partly established. Established: what determines whether a reversed amount, and any fee, are returned to the merchant (S12, S33); what determines when a reversed amount, and any fee, are returned to the merchant (S33). Missing: the stages a card dispute passes through._
## What processors and card networks expect you to be able to submit
- See above: A business has only one opportunity to submit its dispute response; Stripe immediately forwards the response and all supporting files to the issuing bank, and the response cannot afterwards be edited nor further files submitted, so all evidence must be assembled before submitting. ([CG-MCE-037#S17](#s-CG-MCE-037-S17))
- See above: The business is told to keep a record of all communication with the customer during the dispute process, because that record provides evidence to submit with the response. ([CG-MCE-037#S18](#s-CG-MCE-037-S18))
- See above: For fraudulent disputes that might be covered by the liability shift rule, Stripe automatically supplies most of the evidence, such as the Electronic Commerce Indicator (ECI) from 3D Secure. ([CG-MCE-037#S19](#s-CG-MCE-037-S19))
- See above: The background-evidence sections of the Stripe response form can include shipping details, refund policy details, customer details and product details (a list the document leaves open), and where those fields are not pre-populated the business is to include as much information as it can before submitting. ([CG-MCE-037#S20](#s-CG-MCE-037-S20))
- See above: Square states that during disputes the bank is looking for any supporting evidence the seller may have about the transaction, giving as examples contracts, invoices, email correspondence, terms of service, and signed proof of satisfactory delivery. ([CG-MCE-037#S36](#s-CG-MCE-037-S36))
- See above: Square describes an invoice as a written document that includes a description of the goods or services and the payment amount. ([CG-MCE-037#S38](#s-CG-MCE-037-S38))
- See above: Square instructs sellers to collect proof of completion once a good is delivered or a service completed, and says this may be a delivery confirmation displaying the buyer's full address for goods, or a certificate of completion for services. ([CG-MCE-037#S39](#s-CG-MCE-037-S39))
- See above: Square states that where goods or services are delivered before an invoice is paid, the seller can toggle on Goods and services confirmation when creating the invoice, which requires the customer to confirm acceptance of the goods and services with satisfaction in order to pay it. ([CG-MCE-037#S40](#s-CG-MCE-037-S40))
- See above: Square instructs sellers to create evidence that the cancellation policy was acknowledged before the sale by each specific customer on each transaction, by putting the written policy on contracts or receipts and requiring a signature on those documents. ([CG-MCE-037#S41](#s-CG-MCE-037-S41))
- See above: Square encourages sellers who have tried to resolve issues related to the dispute, or who had to postpone or cancel a delivery, to share relevant screenshots or photos of those conversations. ([CG-MCE-037#S42](#s-CG-MCE-037-S42))
- Compelling Evidence is defined as information or documentation provided by a Merchant or an Acquirer in a Dispute Response or pre-Arbitration that attempts to prove the Cardholder participated in the Transaction, received goods or services, or otherwise benefited from the Transaction. _(jurisdiction: Global — the Visa payment network worldwide, entity_scope: Merchants and Acquirers submitting evidence in a Dispute Response or pre-Arbitration, platform: Visa payment network, platform_edition: Visa Core Rules and Visa Product and Service Rules, 18 April 2026 (Visa Public edition), conditions: glossary definition, not an operative requirement)_ `CG-MCE-037#S48`
> “Information or documentation provided by a Merchant or an Acquirer in
a Dispute Response or pre-Arbitration that attempts to prove that the
Cardholder participated in the Transaction, received goods or services,
or otherwise benefited from the Transaction, as specified in Section” — [Visa Inc. — Visa Core Rules and Visa Product and Service Rules](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf), 2026-04-18; Glossary, term "Compelling Evidence" (ID# 0027268), printed page 846. Verified 2026-09-09.
- See above: For merchandise-related Disputes under Condition 13.1, one accepted form of Dispute Response evidence is that the Cardholder or an authorized person received the merchandise at the agreed location or by the agreed date/time, including (among other things) proof of delivery containing the full delivery address — tracking with a partial address is not permitted — or, for Card-Absent Transactions where merchandise was collected, a pick-up document with acknowledgment from the Cardholder or authorized person such as a signature, PIN or collection code. ([CG-MCE-037#S50](#s-CG-MCE-037-S50))
## Response deadlines and how you are notified
- When the issuer decides, Stripe updates the dispute status to won or lost and notifies the business through the Dashboard, email and any other configured communication channels. _(jurisdiction: Stripe users generally; page retrieved with Stripe Docs country selector set to Canada, entity_scope: Businesses receiving card payments through Stripe, platform: Stripe, platform_edition: Stripe Docs 'How disputes work', retrieved 2026-09-08)_ `CG-MCE-037#S14`
> “As soon as the issuer makes its decision, Stripe updates the status of the dispute to won or lost , notifying you through the Dashboard, email, and any other communication channels you configured.” — [Stripe, Inc. — How disputes work](https://docs.stripe.com/disputes/how-disputes-work), Current online Stripe Docs page, country selector 'Canada', locale 'English (United States)', retrieved 2026-09-08; snapshot sha256 4d6002c09dec1f90f4ffb35d3e3697fd23b34704db6b042cdd8725e427b6b5e7; Section 'After the decision'; TEXT.txt line 169. Verified 2026-09-09.
- See above: Stripe states that a business receiving a dispute notification has a limited window to respond, usually 7 to 21 days depending on the card network, and that failing to respond before the deadline means the business automatically loses the dispute and cannot retrieve the disputed funds. ([CG-MCE-037#S15](#s-CG-MCE-037-S15))
- See above: Stripe notifies the business of a dispute through the channels listed: the business's email address, the Stripe Dashboard, a charge.dispute.created event where the integration is set up to receive events to an event destination, and a push notification where the business is subscribed. ([CG-MCE-037#S16](#s-CG-MCE-037-S16))
- See above: When a customer files a dispute with their bank, Square notifies the seller of the initial dispute by email, in Square Dashboard, and by in-app notification. ([CG-MCE-037#S29](#s-CG-MCE-037-S29))
- See above: A Square seller has seven days from receiving the initial dispute notification email to submit their information. ([CG-MCE-037#S30](#s-CG-MCE-037-S30))
- See above: If a Member does not respond through Visa Resolve Online within the specified timeframe for an action, or accepts responsibility for the Dispute, the Dispute cycle is considered closed and that Member is responsible for the last amount received by the opposing Member. ([CG-MCE-037#S47](#s-CG-MCE-037-S47))
## Not yet fully established from an authoritative source
- Establish how a chargeback, its fee, and a later reinstatement of the reversed amount are recorded so that revenue, the customer's balance and cash each reflect the outcome once; how that recording differs from the recording of a refund the merchant itself issues; the criterion that decides whether the original sale is reversed or the reversal is carried as a separate item, and how that item is carried in the books while the dispute is open; and what a reversal and its fee netted inside a payout do to the balance of the account holding card settlements. _(not established; below the required authority class)_
- Establish how a chargeback and its fee appear in a processor's settlement reporting and payouts, including when they are netted against a later transfer. _(partly established)_
- Establish the stages a card dispute passes through and what determines whether and when a reversed amount, and any fee, are returned to the merchant. _(partly established)_
- Establish what a chargeback is: money already settled to the business being withdrawn at the cardholder's instigation through the processor, and how that differs in origin, control and record from a refund the business chooses to issue. _(partly established; below the required authority class)_
- Explain how the reversal is recorded so that revenue, the customer's position and the bank each reflect it once, and state the criterion that decides whether the original sale is reversed or the reversal is carried as a separate item while the outcome is unknown. _(not established; below the required authority class)_
- Explain how the chargeback fee is recorded separately from the reversed sale amount, and why combining them prevents the business from seeing what disputes are costing it. _(partly established; below the required authority class)_
- Explain how the reversal and its fee appear when they are netted inside a later payout rather than debited directly, and what that does to the balance in the account that holds card settlements. _(partly established; below the required authority class)_
- Establish that the position is provisional while the dispute is open, and explain how the item is carried in the books until the outcome is known so that neither result requires the records to be rewritten. _(partly established; below the required authority class)_
- Explain the recording in both outcomes: the amount returned when the dispute is resolved in the business's favour, whether the fee is returned with it, and the position when the reversal stands. _(established; below the required authority class)_
- Establish the categories of evidence the business must be able to produce in response — the record of the sale, evidence that the goods or service were delivered, evidence of the cardholder's authorisation, the terms presented at the time of sale, and the communications with the customer. _(partly established)_
- Establish that the response operates against a deadline set by the processor and the card network, and that the business needs a defined routine to detect the reversal and assemble the file within it. _(partly established; below the required authority class)_
## Related
- [I need to refund a customer or cancel an invoice I already recorded — how do I do it without just deleting the invoice?](https://uppago.com/resources/i-need-to-refund-a-customer-or-cancel-an-invoice-i-already-recorded-how-do-i-do)
_Reference date 2026-09-07. Statements are quoted verbatim from their sources; scope and verification dates are shown on each._