What is the process for disputes on card payments?

When a customer pays a deposit, reservation fee, or other payment using a credit or debit card (Visa, Mastercard, or American Express etc) through iVendi Pay, any dispute raised by the customer is handled according to standard card network chargeback regulations. Unlike voluntary cancellation requests, a dispute occurs when a cardholder bypasses the retailer and contacts their card-issuing bank directly to challenge or reverse a transaction.

Full information on this process can be seen in Stripe's own documentation.

What happens when a dispute is created?

1. Immediate Fund Withholding:
   As soon as the customer's bank lodges the dispute, the transaction amount and a network dispute fee are automatically withheld from your available payout balance.
2. Fixed Evidence Deadline:
   You have a strict window, typically between 7 and 21 calendar days (clearly displayed on the dispute record), to respond. If the deadline passes without a submission, the dispute closes in the cardholder's favour by default and the funds cannot be recovered.
3. Single Submission Window:
   Card networks allow only one round of evidence. You cannot supply additional documents once your response is submitted.
4. Resolution Timeline:
   The cardholder’s bank reviews the documentation and renders a final decision, which usually takes between 60 and 90 days.

Step-by-Step: How to respond to a dispute

When a dispute is opened, an alert email is sent and the transaction is flagged in your iVendi Platform.

1. Review the claim details

Go to the Disputes section in your dashboard and open the disputed payment. Review the dispute reason code and any explanation notes provided by the cardholder's bank.

2. Choose to accept or counter

• Accept the dispute:

  Select this if the customer was entitled to a refund, an error was made on the invoice, or you agree with the claim. Accepting affirms the customer keeps the refunded amount and immediately concludes the case.

• Counter the dispute:
  Select this if the transaction is legitimate, the vehicle or goods were delivered as agreed, or the buyer breached the signed contractual terms.

3. Assemble your evidence packet

Prepare factual documentation directly countering the specific reason for the dispute. Suggested evidence depending on the product sold is as follows:

• Warranties & Mechanical Breakdown Cover: Signed customer policy schedule or certificate of insurance, signed terms confirming the 14- or 30-day cooling-off period has passed, proof of policy registration with the administrator, and any claims history.
• Service Plans & Maintenance Packages: Signed service plan schedule detailing payment intervals, workshop job cards or technician stamps proving completed servicing, and signed cancellation terms.
• Paint & Interior Protection: Pre-delivery inspection (PDI) sheet signed upon collection showing treatment application, and customer handover acknowledgment confirming receipt of the care pack kit.
• Vehicle Reservations & Holding Deposits: Signed digital reservation agreement detailing deposit terms, refundable status conditions, and the agreed vehicle completion window.
• Direct Customer Communication: Direct email or SMS chains showing policy documents were delivered, collection dates agreed, or cancellation terms clearly explained.
  
  

4. Submit before the deadline

Upload your compiled documents and click Submit Evidence. The dispute status will transition to Under Review while awaiting the issuing bank's verdict.

Strict bank rules for uploading evidence

Card issuing banks review thousands of chargeback cases daily and follow rigid evaluation standards:

• No external links or multimedia: Do not include links to Google Drive, Dropbox, external tracking URLs, audio recordings, or videos. Banks will never click external links or review audio/video files. All proof must be submitted as standalone PDFs or image files.
• Combine files into single PDFs: Group related documents (e.g., all communication records, or contract and handover note) into single multi-page PDF files rather than disjointed attachments.
• File size limits: The total size of all uploaded files combined must remain under 4.5 MB (and under 19 pages for Mastercard).
• 3D Secure liability shift: If the customer authenticated the payment via 3D Secure during online checkout, the payment gateway automatically passes this verification data to help protect your business against fraudulent "unrecognised transaction" claims.

Outcomes and fees

• If you win the dispute: The cardholder's bank overturns the chargeback. The withheld payment is returned to your payout balance. (In applicable regions, countered fees are also returned).
• If you lose the dispute: The customer permanently retains the refunded amount, the administrative dispute fee (typically £20) is non-refundable..

Best practices to protect against chargebacks

1. Never hand over without a physical signature: Ensure every vehicle handover includes a signed, dated handover pack and condition report.
2. Clear deposit and cancellation policies: Ensure reservation terms, non-refundable deposit terms, and delivery schedules are acknowledged in writing by the customer before payment.
3. Recognizable billing descriptor: Verify that your card descriptor matches your dealership's trading name so customers easily recognize the transaction on their mobile banking statements.