Customer disputes can feel stressful, especially the first time. You’re not alone. Disputes are a normal part of accepting card payments, and this guide will help you handle it step by step.
Just received a dispute? Start here.
Log in to your Stripe Dashboard → Disputes
Check the response deadline (usually 7-21 days)
Decide to accept or challenge the dispute \If you challenge, submit all evidence at once before the deadline
You don’t need to act immediately, but missing the deadline guarantees a loss.
Important things to know before you decide:
Disputes are reviewed by the customer’s bank
Stripe does not decide the outcome
Responding gives you a chance; not responding almost always means losing
Long timelines (1–3 months) are normal
Accept or challenge?
When you receive a dispute, you have two options. Neither option is right or wrong and depends on the situation and what makes the most sense for your business.
When to accept a dispute
Accepting a dispute means you agree to refund the customer and do not contest the charge with the bank. When you accept a dispute, the case closes as lost, the dispute fee is not returned, the customer keeps the refunded amount, and no further action is needed. This option may make sense if:
You already promised a refund
You made a mistake and the customer has a valid claim
You don’t have documentation to support the charge
The disputed amount is small and not worth the effort to challenge
When to challenge a dispute
Challenging a dispute means you believe the charge is valid and you can provide evidence for the bank to review. When you challenge a dispute, you will submit evidence through Stripe and the bank will make a final decision after reviewing the information (usually takes 1-3 months). This option may make sense if:
You delivered the service or product as agreed
You have clear evidence proving your case (invoice, contract, proof of service, customer communication)
You believe the dispute was filed by mistake or is fraudulent
Examples of strong evidence:
Invoice or receipt
Signed estimate or contract
Emails or texts showing approval
Photos or notes proving completion
Refund or cancellation policy
Tips for submitting evidence:
Upload everything at once
Organize files from oldest to newest
Include only what matters (quality > quantity)
Use clear, readable text (12pt+ font)
Add a short summary if helpful
Example summary: “Customer approved estimate on May 3. Service completed May 10. Invoice paid May 11. Photos confirm completed work.”
Do not include:
Videos or audio files
External links
Emotional or opinion-based statements
Where to go for help
While we can’t override a bank’s decision, our team can help you understand what to submit and what to expect.
Stripe Dashboard → Disputes tab
Stripe dispute emails
We hope this guide has been helpful. Bookmark this page for future reference and continue below for tips on how to reduce future disputes and other helpful information.
How to reduce future disputes
Most disputes are preventable with clear communication and documentation.
Make charges easy to recognize - Use a clear business name and detailed invoices
Get approval before charging - Use written estimates and confirm changes in writing.
Communicate early and often - Share timelines, delays, and updates.
Have clear refund and cancellation rules - Include rules on invoices or estimates and follow them consistently.
Handle issues before they reach the bank - Issuing a refund early is often cheaper than a dispute.
Common reasons for customer disputes
They don’t recognize your business name on their statement
They believe they were charged twice
They didn’t receive the product or service
They’re unhappy with the work or claim it wasn’t as described
They believe the charge was fraudulent
Common dispute types
You don’t need to memorize codes. Most disputes fall into these buckets:
Fraud / Unauthorized charge: Customer says they didn’t make the purchase
Product or service not received: Customer claims the work wasn’t done
Not as described: Customer is unhappy with the quality
Duplicate charge: Customer thinks they were charged twice
Refund not processed: Customer expected a refund but didn’t see it
Some payment methods (like card-present vs online payments) can affect dispute timelines and outcomes. You don’t need to do anything different since Stripe automatically applies the right rules, but evidence requirements may vary.
What happens when a dispute is opened?
When a dispute is opened, a few standard things happen behind the scenes. This is a normal process, and you’ll have time to review the details and decide what to do next.
You’re notified by email and in your Stripe Dashboard
You have time to respond (usually 7–21 days)
While the bank reviews the charge, the disputed amount (and a dispute fee) is temporarily held from your Stripe balance.
If your Stripe balance doesn’t have enough funds at the time, your balance may temporarily go negative and future payments are applied automatically until resolved. This doesn’t mean you owe anything immediately; it’s simply how card networks account for disputed funds during the review process.
Who should handle disputes?
Only users with access to your Stripe Dashboard can review and respond to disputes. Make sure the right person on your team has access and checks dispute emails regularly. For many businesses, this is the owner, office manager, or bookkeeper.
Does a refund stop a dispute?
Only if it’s issued before the customer contacts their bank. Once a dispute starts, refunds must go through the dispute process.
Do disputes hurt my account?
Too many disputes can increase fees or cause payment issues. Keeping disputes low protects your business.
Can the customer reverse a dispute?
They can withdraw it, but you still need to submit evidence for the dispute to close in your favor.
Will fighting every dispute help my business?
The short answer is no. In some cases, it can hurt.
Challenging a dispute only helps when you have clear, strong evidence that the charge is valid. Fighting every dispute (especially weak ones) can cost time, increase fees, and lead to more frustration without improving outcomes.
Many successful businesses choose to:
Challenge disputes when they have strong proof
Accept disputes when a mistake was made or evidence is limited
This approach saves time, reduces stress, and helps keep dispute rates low, which is better for your business in the long run.