It happens. A charge shows up on a customer’s bank statement and doesn’t look right. Maybe it’s a billing mistake. Maybe they don’t recognize the merchant's name. Maybe it’s fraud. And suddenly, you’re hit with a dispute.
As a seller, it’s important to know exactly why customers file disputes in the first place. That’s not just about reacting—it’s about prevention. The more you understand the common reasons for disputing a charge, the better you can protect your business, respond to cases properly, and avoid chargebacks that shouldn’t be happening in the first place.
Let’s dig into the real-world reasons, walk through how disputes actually work, and help you get ahead of the mess.
What are The Top Reasons for Disputing a Charge?
1. The transaction wasn’t authorized
This is the most common reason, and it’s tied directly to fraud. A cardholder might see a charge they didn’t make, because someone else used their card without permission. That could mean stolen credentials or physical card theft.
As the merchant, it doesn’t always mean you did something wrong. But it does mean you’ll need to prove the transaction was legitimate. If you sell digital goods or subscriptions, unauthorized claims can get tricky fast, especially if there's no clear delivery proof. That’s why using strong customer authentication and AVS (Address Verification System) checks is important.
2. The customer was charged twice
Duplicate transactions are usually system-related. It could be a glitch at checkout, a failed response from the processor, or a customer clicking “submit” more than once. Either way, they only expected to pay once, and they’ll file a dispute to fix it.
Reviewing your payment logs and issuing a refund before the dispute hits can save you fees and reduce your chargeback ratio.
3. The product or service never arrived
This is especially common for merchants who sell physical products. If an item is delayed, lost in shipping, or never sent at all, customers often dispute the charge to get their money back. Tracking numbers help, but only if they show delivery to the right place.
With digital goods, it’s a little different. If the customer didn’t get login credentials or access instructions, they might still argue “non-receipt.” Clear, documented fulfillment is everything here.
4. The item wasn’t as described
Let’s say a customer orders a leather bag, but gets a plastic one. Or they buy a monthly subscription, but get billed yearly. If the item doesn’t match what was promised in your product description, it opens the door to a dispute for “misrepresentation.”
These cases can be tough because it often comes down to interpretation. But screenshots, product specs, and customer support threads can help you defend the charge.
5. The customer canceled, but still got charged
Recurring billing can lead to frustration if it isn’t handled cleanly. If a user cancels a subscription and still sees a charge the next month, they’re going to dispute it. That’s why cancellation flows, confirmation emails, and updated billing terms are so important.
One example: if your site says “cancel anytime,” but then requires five steps and 48 hours of processing, that might be considered misleading. The easier you make it to stop billing, the fewer post-cancellation disputes you'll see.
The Best Practices for Preventing Charge Disputes
Set real expectations before purchase
Don’t oversell. Don’t hide terms. Whether it’s a one-time item or a recurring subscription, clear checkout summaries help customers understand what they’re paying for and how often. Post-purchase confirmations should spell it out again.
Offer easy self-service options
Give users a clear path to pause, cancel, or manage their subscription without contacting support. Not only does this reduce churn friction—it cuts down on disputes filed in frustration.
Respond quickly to complaints
Many customers will email you or open a support ticket before disputing a charge. But if they don’t get a reply fast, they’ll go straight to the bank. Set up internal SLAs for refund requests and prioritize them. A small refund today is cheaper than a chargeback tomorrow.
Track your reason codes
Every dispute comes with a reason code, and those codes reveal patterns. Track them monthly to see where you're vulnerable. If you’re seeing lots of “product not received” claims, that’s a shipping or fulfillment problem. Lots of “not recognized”? That might be your descriptor.
FAQ: Reasons For Disputing a Charge
How long does a customer have to dispute a charge?
In most cases, cardholders have up to 60 days from the statement date to dispute a charge. But timelines vary by network. Visa and Mastercard tend to be strict. American Express and Discover have more flexibility. The sooner a customer notices an issue, the faster it gets flagged.
Can I win a chargeback if I already issued a refund?
If a refund has already been processed before the dispute was filed, you can submit proof to the bank showing that the customer was made whole. Sometimes the chargeback will be reversed. Sometimes it still sticks. It depends on timing and how fast the refund hit their account.
Always communicate with the customer when issuing a refund so they don’t file a dispute on top of it.
What kind of evidence actually helps in a dispute?
The goal is to show the bank that the transaction was legitimate. Depending on what’s being disputed, helpful evidence might include:
- Tracking and delivery confirmation
- Invoices or signed receipts
- Screenshots of your product page
- Proof of digital access or account login
- Customer communication (emails or chat transcripts)
- IP address or device fingerprint from the transaction
Every chargeback reason code has different evidence requirements. Make sure you tailor your response based on the type of dispute.
Are chargebacks always the customer’s fault?
Not necessarily. In fact, many disputes are the result of poor communication, hard-to-read statements, or avoidable confusion. For example, a descriptor like “CHBLST98723” might not mean anything to a customer who bought from “Studio Glow Skincare.”
Others may just not understand the return policy or don’t remember a family member using their card. It’s not always malicious—sometimes it’s just murky. That’s why clarity matters.
Conclusion
Knowing the most common reasons for disputing a charge is one of the best ways to lower your chargeback rate. These disputes aren’t just numbers—they’re signals. They tell you where your policies, checkout experience, or fulfillment process might be falling short.
Take the time to clean up those weak points. Offer clear receipts. Use shipping confirmations. Make sure your descriptors actually match your brand. All of this reduces the chances that a customer skips communication and heads straight to the bank.
Disputes will never disappear completely. But you can reduce them—and when they happen, you’ll be ready.
See Fewer Chargebacks, Starting Now
If you're spending hours responding to disputes and still losing revenue, it might be time for a better approach. Chargeblast helps you spot disputes early, send the right evidence fast, and build smarter fraud defenses before trouble hits.
Whether you’re dealing with card chargebacks or ACH returns, our tools make sure you’re not flying blind. Let us help you get proactive, not just reactive.
Book a demo below or dive in and start building a chargeback strategy that actually works.
