When a cardholder questions the validity of a transaction on their card, a dispute is initiated by the cardholder’s issuing bank. The process is then directed through Pin Payments’ acquiring bank. Notifications about a dispute may be received via the following methods:
1. A retrieval request A retrieval request is a request for information and does not result in the immediate movement of funds.
Should the information you’ve provided prove satisfactory to the cardholder, the case is closed.
If however, the cardholder is not satisfied with the details relating to the charge on their card, they may formally raise a dispute to recover the funds.
When a dispute is formally raised, we will notify you so you can contest the dispute. We will also temporarily withhold the funds for the disputed charge plus a dispute admin fee of $25 AUD, or $25 NZD, from your settlement funds. Your response should include all details relevant to the transaction and details to verify the cardholder, which may include:
- a signed copy of the transaction receipt; and/or
- a copy of the order or invoice; and/or
- a copy of any correspondence received by you from the cardholder.
2. A dispute claim Once a dispute notification is received, you have:
- 20 days to challenge a dispute for a Visa or Mastercard card
- 10 days to challenge a dispute for an American Express card.
If you do not dispute the claim within this time, or the information sent is deemed unsatisfactory, the funds withheld from you will be returned to the cardholder.
If the dispute case is ruled in your favour, no funds will be awarded to the cardholder. The funds withheld for the disputed charge will be released into your account, and the admin fee will be reversed.
Arbitration and settlement process The arbitration and settlement process is handled directly between the issuing and acquiring banks. Pin Payments is unable to influence the arbitration process. However, we can support you to present a sound case where you believe the dispute claim is unfair or fraudulent. In all cases, once the banks have agreed on an outcome, we must abide by the decision reached. There are no avenues for escalation.
Read next: How can l challenge a dispute?
