Handle disputes and chargebacks

What to do when a customer disputes a payment with their bank.

5 min readUpdated 14 May 2026

A dispute (also called a chargeback) is when a customer asks their bank to reverse a payment, instead of asking you for a refund. They are rare, but knowing what to do makes them less stressful.

What happens when you get a dispute

  1. 1

    You get a notification

    We let you know the moment a dispute is opened, with the order it relates to and the reason the bank gave (for example 'product not received' or 'fraud').

  2. 2

    The disputed amount is held

    Your payment provider temporarily holds the amount while the dispute is investigated. It is not a final outcome yet.

  3. 3

    You decide how to respond

    You can accept the dispute (the customer keeps the money) or respond with evidence. Respond from the dispute page in your dashboard.

  4. 4

    Submit your evidence

    Upload screenshots, tracking info, signed delivery receipts, email exchanges — anything that helps show the order was legitimate and delivered. Be polite, factual, and clear.

  5. 5

    Wait for the outcome

    The bank decides, usually within 60 to 90 days. If you win, the money is released back to you. If you lose, the disputed amount stays with the customer.

Always respond — even to lost causes

Unanswered disputes are automatically lost. Even if you suspect you will not win, responding shows your payment provider you take fraud seriously, which keeps your account healthy.

The best dispute is the one you prevent

Clear product photos, accurate descriptions, reliable shipping with tracking, and friendly responsive customer support stop most disputes before they happen.

Frequently asked questions

Is there a fee for disputes?

Some payment providers charge a small fee per dispute (usually deducted from your next payout) whether you win or lose. The order page shows any fee that applied.

Can I refund instead of fighting a dispute?

Sometimes refunding the customer directly is faster and easier than going through the dispute process. Once the dispute is open, refunding through Shopstar usually resolves it.

How do I avoid fraud in the first place?

Watch for unusual signals — orders to addresses far from the card billing address, very large first-time orders, or many cards used by one customer. Trust your gut and contact the customer if anything feels off.

Still need a hand?

Our friendly support team usually replies within a few hours. We are happy to help — no question is too small.

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