Disputes & Chargebacks

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A dispute (also known as a chargeback) occurs when a cardholder questions a transaction with their issuing bank. As a merchant, understanding this process is vital to protecting your revenue.

Frequently Asked Questions

What is the timeframe for the dispute process?

The entire process is governed by banking networks and can take 90 to 120 days to resolve. However, your window to respond is shorter: PayMongo requires you to submit your evidence within 5 working days of receiving the notification. Failure to respond will result in an automatic loss.

How long does a cardholder have to dispute a charge?

Generally, cardholders have up to 120 days from the transaction date to initiate a dispute. This is why keeping records for at least 4-6 months is recommended.

Should I contest every dispute?

Not necessarily. You should only contest if you have compelling evidence that the charge was valid and the product/service was delivered.

• If you contest and win: The transaction amount and the dispute fee are returned to you.
• If you contest and lose: You lose the transaction amount and the PHP 800.00 dispute fee.
• If you accept: You lose the transaction amount and the fee, but you avoid the administrative effort of a case you cannot win.

Can I refund a disputed amount to avoid the fee?

No. Once a dispute is filed, the refund process is frozen by the bank. Do not issue a refund on your dashboard after a dispute has started, as this may result in a double loss (the refund + the dispute reversal).

Am I defenseless as a merchant?

Absolutely not. Your best defense is clear documentation. Transaction logs, proof of fulfillment, shipping receipts (with signatures), and Terms & Conditions acceptance are considered strong evidence by banks.