--- title: "Disputes and chargebacks" description: "Understand and respond to payment disputes raised by customers' banks—statuses, reasons and evidence." lastModified: "2026-06-13" lang: "en" wordCount: 585 url: https://qualyhq.com/training/reports/disputes-and-chargebacks --- ## Site navigation - [For schools](/international-education/for-schools.md) — For international education schools - [For agents](/international-education/for-education-agents.md) — For international education agents - [Explore](/training.md) — Watch videos on how to use Qualy - [About](/about.md) — Learn about Qualy's mission and values - [Pricing](/pricing) - [5-min demo](/demo.md) - [Login](https://dashboard.qualyhq.com) # Disputes and chargebacks > When a customer's bank challenges a charge, here's what to do. ## At a glance - **Intended for:** Everyone - **Available in:** All plans - **Reading time:** 3 minutes - **Last updated:** 31st May 2026 ## Quick summary A dispute (chargeback) is raised by a customer's bank against a transaction. The Disputes area shows each dispute's amount, transaction, reason and status—needs your response, under review, won, lost, and warning states. Respond with evidence where the status calls for it. ## Overview Occasionally a customer's bank challenges a charge—a **dispute**, often called a **chargeback**. The **Disputes** area is where you see and respond to them. ## What a dispute shows For each dispute you can see the **amount in dispute**, the **transaction** and **payment** it relates to, the **reason**, and the **status**. ## Dispute statuses ### Needs your response The bank is asking you to respond—submit evidence supporting the charge. ### Under review The bank is assessing the dispute (and your evidence). ### Won / Lost The outcome: won means the charge stands; lost means it's reversed in the customer's favour. ### Warning states Early heads-ups about a *potential* dispute, before it fully escalates. You'll see these labelled like the main ones—**Needs your response**, **Under review** or **Closed**—but they're an advance signal rather than a live chargeback. ## Common reasons Disputes are raised for reasons such as **fraudulent**, **unrecognized**, **duplicate**, **credit not processed**, **debit not authorized**, **insufficient funds**, **incorrect account details** and **bank cannot process**. ## Responding When a dispute **needs your response**, submit **evidence** supporting the charge. Prompt, well-documented responses improve your chances. A dispute is **not** the same as a refund. Don't issue a refund for a charge that's already disputed—handle it here, or you risk paying twice. Treat **warning** statuses as a chance to fix things early—often a quick clarification with the customer resolves the issue before it becomes a full chargeback. ## Frequently asked questions ### What is a dispute or chargeback? A challenge to a charge raised by the customer's bank—often called a chargeback. The bank asks for the payment to be reversed, and you may need to respond with evidence. ### How is a dispute different from a refund? A refund is something you initiate to return money. A dispute is initiated by the customer's bank. They follow different processes, and a disputed charge is handled in the Disputes area, not by issuing a separate refund. ### What statuses can a dispute have? The main statuses are 'Needs your response', 'Under review', 'Won' and 'Lost'. There are also early-warning notifications—shown as 'Needs your response', 'Under review' or 'Closed'—that flag a potential dispute before it becomes a full chargeback. ### What are common dispute reasons? Reasons include fraudulent, unrecognized, duplicate, credit not processed, debit not authorized, insufficient funds, incorrect account details, and bank cannot process, among others. ### How do I respond to a dispute? When a dispute needs your response, submit evidence supporting the charge. The dispute then moves to under review while the bank assesses it. ### What does a warning status mean? A warning is an early heads-up about a potential dispute. Acting on warnings promptly can help you resolve issues before they escalate. ### What happens if I lose a dispute? The charge is reversed in the customer's favour. Keeping good records and responding promptly with evidence improves your chances of winning. ## Prefer doing this via the Qualy API? Head over to our developer docs for everything you need—endpoints, examples, and simple how-tos. 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