This article provides a deeper look into how disputes—also known as chargebacks—are handled across the payments industry. Whether initiated by a guest due to an unrecognized charge, dissatisfaction, or a processing error, disputes follow a structured resolution process led by banks and card networks.
You’ll learn what to expect at each stage, from the moment a chargeback is filed, through the evidence submission window, to the final bank decision. We’ll also explore strategies to improve your chances of a favorable outcome, such as assembling strong supporting documentation, understanding reason codes, and responding within critical timelines.
By gaining insight into how disputes work and how to build a strong defense, you can protect your business revenue, reduce chargeback risk, and feel more confident navigating any future challenges.
Important: Xola’s Dispute Manager allows you to submit evidence to Stripe, which then communicates directly with the cardholder’s financial institution. Stripe and Xola are not involved in the decision making process - only the financial institution decides the outcome based on the evidence provided.
What is covered in this article:
- Fighting Disputes
- Dispute Types
- Best Practices for Submitting Dispute Evidence
- Resolution Timeframe
- FAQs
- Emails You'll Receive When a Dispute is Filed
Fighting Disputes
Disputes are often resolved in favor of the cardholder, as the cardholder’s financial institution makes the final decision and is generally motivated to support its customers.
Tips to improve your chances
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Prevent disputes when possible: Proactively communicate with customers who are dissatisfied, late, or absent. Offering a refund, credit, coupon, or help with rescheduling can go a long way.
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Avoid partial refunds: Even if you issue a partial refund, the cardholder can still dispute the full charge - and potentially win the full amount back.
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Respond quickly: Dispute deadlines are short. Submit your evidence within 3 days of receiving the notification email from Xola.
- Use clear credit card descriptors: Ensure that your credit card descriptor (the name that appears on a customer's bank statement) is clear and recognizable. Many disputes arise simply because customers don’t recognize a charge. A straightforward billing name that matches your business can prevent unnecessary unrecognized chargebacks.
Note: Cancellation policies and terms of service help set expectations but have little impact on the outcome. Even if a guest is ineligible for a refund per your policy, they may still win the dispute.
Xola’s Dispute Manager will automatically include standard evidence (e.g., date of service, confirmation email, cancellation policy). You can also upload additional supporting materials. However, you must populate and submit the evidence yourself. Xola will not automatically submit any edvidence for you.
Your best chance at resolving a dispute? Reach out to the customer directly and ask them to withdraw the dispute with their bank. If the customer is willing, this is the fastest and most effective path to resolution.
Here are a few ways to approach this:
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Call or email with empathy - Acknowledge their concern and offer to clarify the charge. Sometimes just helping them recognize the business name can resolve things.
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Offer a resolution - You can propose a refund, coupon, or credit, and let them know you’d appreciate them contacting their bank to cancel the dispute.
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Provide helpful documentation - If they seem confused, send a copy of the confirmation email, your cancellation policy, or a receipt.
Important: If the customer agrees to withdraw the dispute, always ask for written confirmation (e.g., email or message). Submit this written confirmation with your evidence in the Dispute Manager.
Even if the customer promises to cancel the dispute, you should still submit your full evidence. If they don’t follow through, and you haven’t submitted evidence, you will lose the dispute by default.
Dispute Types
Here are the most common dispute types and how to respond:
- Fraudulent
- What it means: The cardholder claims they didn’t authorize the charge.
- To resolve: Help the customer recognize the charge or prove that they authorized it.
- Unrecognized
- What it means: The cardholder doesn’t recognize your business name on their statement.
- To resolve: Help the customer identify the charge and withdraw the dispute.
- Product Not Received
- What it means: The customer claims they didn’t receive the product or service.
- To resolve: Provide proof that the product or service was delivered or used before the dispute was filed.
- General
- What it means: The issue doesn’t clearly fit into a standard dispute category.
- To resolve: Reach out to the customer to better understand the dispute and submit relevant evidence.
Best Practices for Submitting Dispute Evidence
The following are just suggestions, and Xola cannot guarantee that following these will result in a win.
Please review the following guidelines to enhance the likelihood of a favorable outcome in a dispute.
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Tailor Evidence to the Dispute Reason
Ensure that the evidence you provide directly addresses the specific reason for the dispute. For instance, if a customer claims they didn't receive a service, include proof of service delivery, such as check-in records or signed agreements/waivers. -
Provide Comprehensive Documentation
Include all relevant information that supports the legitimacy of the transaction. This may encompass:-
Booking confirmations
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Communication logs with the customer
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Terms and conditions acknowledged by the customer
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Evidence of service delivery
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Refund or cancellation policies
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Avoid External Links or Requests for Contact
When submitting evidence, refrain from including external links or requests for the reviewer to contact you for more information. All pertinent information should be included directly in the submission, as reviewers may not follow external links or reach out for additional details. -
Submit Evidence Promptly
Adhere to the deadlines specified by Stripe. Timely submission is crucial, as delays can result in automatic dispute losses. If you haven’t submitted evidence by the deadline, you will lose the dispute by default.
Dispute Response Letter Templates
Crafting a clear and concise dispute response letter is vital. Here are some resources offering templates:
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Better Business Bureau (BBB) Sample Letter
The BBB offers a sample letter that guides you in disputing charges, emphasizing the importance of including specific details about the transaction and the nature of the dispute. Link: bbbmarketplacetrust.org -
Chargeback Rebuttal Letter Guide
Chargeback.io provides a comprehensive guide on writing a chargeback rebuttal letter, outlining how to present your case effectively and what information to include to support your claim. Link: Chargeback Autopilot
When using these templates, ensure you customize them to reflect the specifics of your situation, including accurate transaction details and relevant supporting evidence.
This can be uploaded into the Dispute Manager for submission to the financial institution. Please keep in mind that, on average, the person reviewing this dispute will spend less than three minutes before making a decision.
Resolution Timeframe
Evidence Submission Window
Dispute timelines vary by financial institution - some allow only 7 days, others up to 60 days. Xola recommends submitting all evidence within 3 days of receiving the dispute notification to ensure timely processing.
When you submit evidence for a dispute, Stripe charges a $15 Dispute Submission fee in addition to the original $15 fee taken when the customer initiates the dispute. If your evidence is successful and the dispute is resolved in your favor, the $15 submission fee will be refunded.
Final Decision Window
Financial institutions typically make a decision within 60–75 days.
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If you win the dispute: The disputed amount and the $15 dispute submission fee will be returned to your Xola balance; however, the original $15 customer dispute fee is non-refundable and will not be returned.
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If you lose the dispute: The funds will not be returned, and the decision is final.
FAQs
Can I contact the financial institution directly?
No. Financial institutions will only communicate through the official dispute process.
Can I appeal a lost dispute?
No. All dispute decisions are final and cannot be appealed.
Will I be refunded the $15 dispute fees if I win?
Stripe retains the $15 customer dispute fee regardless of the outcome. However, the $15 Dispute Submission fee will be returned. Stripe sets this policy and is not controlled by Xola.
Emails You’ll Receive When a Dispute is Filed
You’ll be notified by email when:
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A dispute is opened
- A final decision has been made in your favor.
