Overview
A dispute arises when a customer disagrees with a transaction and raises it with either their bank or Cashfree Payments. Customers may also report fraudulent transactions to cybercells, and banks often initiate disputes over suspicious transactions directly. We will notify you over email whenever a new dispute is created, changes state or there is a new update from Cashfree.
Payment Gateway Dashboard > Settings > Email Notifications > Dispute EmailsChargeback Types
| State | Description | Response Time | Resolution Time |
|---|---|---|---|
| Dispute | Initial complaints from customers or fraud alerts from banks/authorities | 3 days (1 day for fraud cases) | • Customer complaints: 5-7 business days • Fraud cases: Up to several months • Wallet/Netbanking: ~30 days |
| Retrieval | Preliminary query raised by customer with their bank | 3 days | • If contested: 30-45 days waiting period • If accepted: ~10 days |
| Chargeback | Customer formally disputes transaction after retrieval | 3 days | • Cards: 30-45 days • UPI: 15-20 days |
| Pre-arbitration | Second level dispute if customer disagrees with evidence | 2 days | • Cards: 30-45 days • UPI: 15-20 days |
| Arbitration | Final stage where card networks/NPCI makes decision | 1 day | ~15 days for final verdict |
- Your customer can raise a pre-arbitration or an arbitration even for a dispute that is Closed (Merchant Won).
- Response Time: Maximum days allowed to respond to the dispute
- Resolution Time: Typical time taken to reach a final decision
- Arbitration involves additional fees for the losing party
- Timelines may vary based on payment method and case complexity
Chargeback Process States
Manage Chargebacks
Learn in detail about the various scenarios involved in disputes.
Scenario 1: You accept the dispute
Scenario 1: You accept the dispute
If you accept a dispute and agree that it was a valid dispute raised by the customer, the amount will be refunded back to the customer’s account. This is sometimes the most appropriate option.
Scenario 2: You contests the dispute
Scenario 2: You contests the dispute
Keep the following points in mind before you decide to contest the dispute:
Have the complete set of documents available with you before you upload the documents. Click here to learn more about the documents that are necessary during the upload process. All the documents are reviewed by the issuing bank, so ensure you upload valid documents. It is not necessary that you contest every dispute. As in some cases like pre-arbitration and arbitration, there is a high penalty involved. The entire dispute may take around 3 months time to conclude. If you don’t provide any response you will lose the dispute and your customer will be refunded.
Webhooks
You can subscribe to the following asynchronous webhook events for disputes. Read more here.
DISPUTE_CREATEDDISPUTE_UPDATEDDISPUTE_CLOSED