This guide provides guidance on dispute management and resolution. Currently, it only applies to dispute-supported card payment methods. In this guide, a dispute and a chargeback are defined as follows:
- A dispute occurs when a cardholder (user) questions the validity of a transaction and contacts their bank (issuer) to get a refund or get more transaction-related information.
- A chargeback occurs during the dispute process when a cardholder disputes a charge and contacts their issuer to reverse the payment.
Before you begin
When a chargeback occurs, Alipay will notify you of chargeback information through a notification. Before you can receive the information, you must Configure an address for receiving an NoC.
Before you handle disputes, familiarize yourself with the following topics:
When a dispute occurs, perform the following steps:
- Check the chargeback reason code to understand the chargeback type.
- Handle the chargeback.
- Follow the time limits for each phase of the chargeback.
- Decide whether to accept or defend the chargeback.
- If you decide to defend the chargeback, submit defense documents as required.
However, regardless of whether you win the chargeback defense, mounting chargebacks account for your chargeback ratio. A high chargeback ratio can lead to monthly fines or worse. Therefore, to prevent being labeled as a "high-risk merchant", you must learn the card scheme's dispute monitoring program.
Overall, preventing chargebacks is more important than defending against them. To this end, follow best practices to minimize chargebacks.
Apart from the above, Alipay helps you to reduce fraudulent cases. For more information, see Alipay's assistance in fraud control.