The difference between chargebacks and disputes
Many merchants have trouble distinguishing between chargebacks and payment disputes. That misunderstanding can come at a steep cost.
Chargebacks and disputes alike are generally bad news for businesses. Each is a sign of customer dissatisfaction or even fraud, and for merchants, it can lead to financial penalties. But while chargebacks and disputes are related to one another, they don’t actually mean the same thing. It’s easy to understand the confusion — disputes often result in chargebacks. In fact, dealing with disputes effectively can help prevent some chargebacks and mitigate the harm that goes with them.So what is the difference between a chargeback and a dispute? And how can you address both of them properly? This article will outline a few key distinctions that will help you ensure your payment challenges don’t escalate.