Merchant help › Disputes

Disputes & chargebacks

How to handle a chargeback, respond before the deadline, and what happens to your money during a dispute.

What is a dispute (chargeback)?

A dispute (also called a chargeback) occurs when a customer contacts their bank or card network to reverse a charge they believe was unauthorised, incorrect, or unsatisfied. Disputes are a standard part of accepting card payments online — they are governed by Visa and Mastercard's rules, not by Manuka Pay or Stripe.

Important: funds are withheld immediately

When a dispute is opened by the card network, the full transaction amount is immediately withheld from your Stripe balance while the case is under review. This is an industry-standard requirement — neither Manuka Pay nor Stripe can prevent or delay this withholding.

Common dispute reasons

Unauthorised transaction The cardholder claims they did not authorise the payment. Often a stolen card or account compromise.

Item not received The customer says they paid but did not receive what they purchased.

Item not as described The customer received something different from what was advertised or agreed.

Credit not processed The customer says they were promised a refund that was never issued.

Duplicate charge The customer was charged more than once for the same transaction.

General / other Miscellaneous reasons set by the card network.

Responding to a dispute

You must respond before the evidence due date shown on the dispute. The card network sets this deadline — typically 7 to 21 days from when the dispute was opened. Missing the deadline means you automatically lose the dispute.

Go to Disputes in your dashboard. Open disputes requiring a response appear on the "Open" tab, sorted by deadline (most urgent first).

Click on the dispute to open the detail page. You'll see the amount, dispute reason, related payment, and the evidence deadline.

Review the details. Decide whether to accept or contest (see below).

Submit your response before the deadline.

Accept or contest — which to choose?

Accept the dispute

You concede — the customer wins and the withheld funds are returned to them. The dispute fee (set by Stripe) may also apply.

Consider accepting when:

The customer's claim is valid
You've already issued or agreed a refund
You don't have evidence to contest
The dispute fee cost outweighs the transaction

Contest the dispute

You submit evidence defending the charge. Manuka Pay forwards your evidence to Stripe, which submits it to the card network. Resolution takes 60–120 days.

Consider contesting when:

You have proof the customer authorised the payment
You have delivery/receipt confirmation
The dispute reason doesn't match what happened
You have written communication agreeing to the sale

Submitting contest evidence

When you click "Contest", add your evidence notes in the text field (max 2,000 characters). Include order details, any customer communication, delivery confirmation, and the transaction reference. Manuka Pay submits this to Stripe, which represents it to the card network. Once submitted, your response cannot be changed.

Dispute outcomes

Under review

Your response has been submitted and the card network is reviewing the case. This typically takes 60–120 days.

Won

The card network ruled in your favour. The withheld funds are returned to your Stripe balance. If the dispute fee was charged, it is typically reversed on a win.

Lost

The card network ruled in the customer's favour. The withheld funds are permanently returned to the customer. The Stripe dispute fee is charged and not returned.

Warning / Closed

The dispute was closed by the card network without a standard resolution (rare). No funds are transferred in either direction.

Frequently asked questions

Yes. Disputes appear in your Manuka Pay dashboard under "Disputes" with a badge showing how many need a response. Stripe also sends an email directly to your registered Stripe account email.

Yes — Stripe charges a dispute fee per chargeback, regardless of outcome. If you win the dispute, Stripe typically reverses this fee. If you lose, the fee is not returned. Refer to Stripe's pricing page for the current amount.

Missing the evidence deadline means you automatically lose the dispute. The withheld funds are returned to the customer and the dispute fee is charged. Always respond — even accepting the dispute counts as a response.

Not entirely, but you can reduce them. Clear business name on the payment page (customers who don't recognise a charge often dispute it), good receipts, and responsive customer service are the most effective tools. High dispute rates can affect your Stripe account standing.

No. Stripe will reject a refund attempt on a payment that has an open dispute. The dispute process is the mechanism for returning the money in that case. If you want to concede, accept the dispute instead.

Useful evidence includes: the Stripe payment receipt, your business description, any customer emails or messages agreeing to the purchase, delivery confirmation or receipt, and your terms of service or refund policy at the time of purchase.