A dispute, also called a chargeback, starts when a customer asks their card issuer to reverse a payment. As your Merchant of Record, Dodo Payments handles the dispute process with the card networks. You decide whether to accept or counter each dispute, and you supply the evidence.When a dispute opens, the disputed amount and a dispute fee are deducted from your balance. The Disputes tab shows the status, reason, and dispute ID of every dispute on your account.Dodo Payments also provides three tools that stop disputes before they become chargebacks:
Go to Transactions in your dashboard and select the Disputes tab. The list shows each dispute’s amount, status, dispute ID, associated payment, and creation date.
2
View Dispute Details
Click a dispute in the list to open its details: the dispute ID, payment ID, customer name and email, reason, and remarks.
3
Access Associated Payment Information
To see the full details of the disputed payment, click its ID in the Associated Payment column.
When a customer opens a dispute, Dodo Payments emails you, and the dispute appears in the Disputes tab with the status Dispute opened.
You have 10 days to respond to a dispute after it is created. The countdown shown on the dispute in your dashboard reflects the same window.
1
Check Your Dashboard
Go to Transactions → Disputes and find the new dispute.
2
Review the Email Notification
Check your registered email address for the dispute notification.
3
Choose Your Response
Open the dispute. You can accept it or counter it.
4
If Accepting
Click Accept Dispute and confirm. The disputed amount is refunded to the customer, the dispute fee applies, and you lose the dispute. No further action is required.
5
If Countering
Click Counter Dispute and complete the form. First, select why you should win the dispute and describe the product or service. Then upload your evidence and click Submit. Follow the Dispute Response Best Practices when you prepare the evidence.
After you submit evidence, the dispute status changes to Dispute challenged while the card network reviews it.
Review the dispute reason carefully. Common reasons include:
Fraudulent Transaction
The customer claims they did not authorize the transaction.
Product/Service Not Received
The customer claims they did not receive the product or service after payment.
Not as Described
The customer claims the product or service differs from what was advertised.
Your response must address the specific reason. Don’t submit generic or unrelated evidence.
2
Gather the Right Evidence
Focus on evidence of the customer’s identity, access, and usage.
Fraudulent Transaction
Product/Service Not Received
Not as Described
Required Evidence
Invoice of the purchase
IP address, device, and location details at the time of purchase
Login timestamps showing access to your platform or service
Browser or device fingerprint, or account activity logs
Previous successful transactions from the same customer or account
Terms of Service and Refund Policy accepted at the time of purchase
Required Evidence
Invoice of the purchase
Screenshot or logs showing a successful login
Timestamped activity, such as downloads, content viewed, or sessions started
Emails or support messages confirming that access was granted
Welcome emails or onboarding steps the customer completed
Internal logs showing the product or service was delivered as promised
Required Evidence
Invoice of the purchase
The product or service description on your website at the time of purchase
A comparison of what was promised and what was delivered
Documentation or screenshots of what the customer accessed
Any customer communication acknowledging receipt or usage
The refund policy and support options made available to the customer
3
Craft a Clear Description
Focus Points
What the customer purchased
When and how they accessed it
Why the dispute claim is inaccurate
Keep your language factual and professional. Avoid emotional or accusatory statements.
Example Response
“We offer a digital image generation from text service using AI. The customer purchased a monthly subscription on March 5 and accessed the product multiple times from March 5–10 and generated 4 images in the duration. Please see attached access logs and the accepted terms showing our no-refund policy.”
4
Format and Submit Evidence
Submission Guidelines
Use PDF, JPG, PNG, or ZIP files only
Label each file clearly, for example Login_Log_March_5.pdf
Submit only relevant and organized files
Keep each file under 5 MB
To upload several files for one evidence type, compress them into a single ZIP archive
Do not include links or URLs
Common Mistakes to Avoid
Avoid These Errors
Ignoring the actual dispute reason
Using vague or emotional statements
Uploading unrelated or unstructured files
Providing links instead of files
Bonus Tips
Strengthen Your Case
Include timestamps with a time zone to prove access timelines
Highlight any two-factor authentication or verification steps
Share refund refusal communication if it aligns with your policy
Keep your policies visible, so you can prove the customer accepted them
Visa Rapid Dispute Resolution (RDR) resolves eligible Visa disputes before they become formal chargebacks. When a cardholder disputes a Visa payment with their bank, RDR checks the amount against your configured threshold. If the amount qualifies, RDR refunds the cardholder on your behalf, so no chargeback is filed.
Disputes cost digital businesses money and time. A high dispute rate also has consequences beyond each lost payment:
Financial Impact
For each dispute, the disputed amount plus a dispute fee are deducted from your balance. The dispute fee is not refunded, even if you win.
Dispute Rate Penalties
Card networks monitor your dispute and fraud levels. Exceeding Visa’s or Mastercard’s thresholds places you in a monitoring program with fines.
Account Risk
A consistently high dispute rate can lead to higher processing fees, reserve requirements, or account termination by payment processors.
Operational Overhead
Each dispute needs evidence, a written response, and follow-up, which takes time away from building your product.
Visa’s Acquirer Monitoring Program (VAMP) counts your disputes and fraud reports each month against your settled transactions. A merchant with a ratio of 1.5% or more and at least 1,500 disputes and fraud reports in a month is flagged as excessive. In CEMEA, the limits are a ratio of 2.2% and at least 150 disputes and fraud reports worth USD 75,000 or more. Visa charges fees for every month the merchant stays above the threshold.
The customer contacts their bank to dispute a Visa transaction on their statement.
2
RDR Intercepts the Dispute
Before the dispute becomes a formal chargeback, Visa’s RDR system checks whether the transaction qualifies for automatic resolution under your configured rules.
3
Automatic Refund Issued
If the transaction amount is at or below your threshold, the cardholder is refunded through Visa’s network, and the dispute is resolved.
4
No Chargeback Recorded
Because the dispute is resolved before it becomes a formal chargeback, it does not count against your dispute rate with Visa.
A transaction refunded through RDR appears as a lost dispute in your Dodo Payments dashboard, marked Resolved by RDR. This is expected: the refund was issued automatically to prevent a formal chargeback, and the “lost” status reflects that the funds were returned to the cardholder. The dispute webhook reports it as dispute.lost with is_resolved_by_rdr: true. A Visa RDR fee replaces the dispute fee for these disputes.
RDR uses a USD threshold. A Visa dispute at or below your threshold is resolved automatically with a refund. A dispute above the threshold goes through the normal dispute process, so you can counter it with evidence.
For example, with a $100 threshold: a $75 dispute is resolved automatically (refunded), while a $150 dispute proceeds normally for you to review and respond to.
Visa RDR is enabled by default on all Dodo Payments accounts with a $100 USD threshold. Any Visa dispute at or below $100 is resolved automatically with a refund, with no action from you. For pricing, see the Dodo Payments pricing page.
Go to Settings → Dispute Resolution in your Dodo Payments dashboard and find the Visa RDR card.
2
Edit the Threshold
Click Edit next to the current threshold and enter the new amount in USD. Visa disputes at or below this amount are resolved automatically.
3
Save Your Changes
Save the new threshold. It applies to every Visa dispute that arrives after you save it.
To turn RDR off, switch off the Visa RDR toggle. Keeping it on protects your dispute rate. If Dodo Payments has locked the RDR settings for your business, you can’t change them from the dashboard; contact support.
Start with a threshold near your average transaction value, then adjust it as you learn your dispute patterns.
Can a cardholder dispute the same transaction again after RDR resolution?
No. Once a transaction is resolved through RDR, it is closed at the Visa network level. The issuer does not process another chargeback for the same transaction. If the cardholder tries again, their bank sees the earlier resolution and rejects the dispute. Visa enforces this upstream, so there is nothing for you to manage.
Visa RDR covers only Visa cards. Ethoca alerts give you the same pre-chargeback protection on Mastercard and other non-Visa cards. Ethoca is Mastercard’s alert network. When a cardholder reports fraud or disputes a charge, their card issuer sends an alert before it files a chargeback. Dodo Payments then refunds the payment automatically, so the chargeback is never filed.Alerts come only from card issuers that take part in Ethoca. Most alerts are on Mastercard payments. Alerts on American Express and other non-Visa cards are handled the same way when the issuer takes part. Visa disputes are always handled by Visa RDR.
After your business is enrolled, every alert on a non-Visa payment is resolved automatically:
1
Cardholder Reports the Charge
The customer tells their bank that a Mastercard or other non-Visa charge is fraudulent, or disputes it.
2
The Issuer Sends an Alert
Before filing a chargeback, the issuer sends an alert through Ethoca. Dodo Payments matches it to the original payment using the card details, amount, and transaction time.
3
The Payment Is Refunded in Full
Dodo Payments refunds the full payment amount to the cardholder. There is no threshold: every matched alert is refunded, whatever the amount.
4
Any Linked Subscription Is Cancelled
If the payment belongs to a subscription, the subscription is cancelled immediately. An active subscription would produce the same alert again at the next renewal.
5
The Alert Is Resolved
Dodo Payments confirms the refund through Ethoca, so the issuer does not file a chargeback. The dispute does not count against your chargeback ratio, which helps keep you out of Mastercard’s chargeback monitoring programs.
If the payment was already refunded or is already under dispute, the alert is closed without another refund. Any linked subscription is still cancelled.
Enrolling means accepting automatic refunds. You can’t review an alert or counter it with evidence. To respond to disputes on non-Visa cards yourself, don’t enroll, or unenroll at any time.
Ethoca alerts are opt-in. Before you enroll, your business needs live payments enabled and a statement descriptor. A fee applies for each alert. For pricing, see the Dodo Payments pricing page.
1
Open Dispute Resolution Settings
Go to Settings → Dispute Resolution in your Dodo Payments dashboard and find the Ethoca Alerts card. Only editors and owners can change this setting.
Ethoca Alerts on the Dispute Resolution settings page
2
Enroll
Click Enroll and confirm. By confirming, you accept that every alerted payment is refunded automatically.
3
Wait for Confirmation
Your status shows Pending while Ethoca confirms your enrollment, which takes 2 to 4 business days. Click Refresh to check. Alerts are not refunded automatically until your status shows Enrolled.
Click Unenroll on the same card and confirm. Removal usually completes within a few minutes, and alerts can still arrive and be refunded until it does. You can enroll again at any time. If the dashboard reports that your enrollment can’t be removed there, contact support.
Why was a subscription cancelled after an Ethoca alert?
The cardholder told their bank that they dispute the charge. An active subscription would bill them again at the next renewal and produce another alert and another refund. Cancelling it immediately stops that cycle. This also applies when the alert is closed without a refund because the payment was already refunded or disputed.
Can I contest an Ethoca alert with evidence?
No. Enrolling in Ethoca alerts means every matched alert is refunded automatically. To respond to disputes on non-Visa cards yourself, unenroll on the Settings → Dispute Resolution page. You can still counter Visa disputes above your RDR threshold.
Can a payment go through both Visa RDR and Ethoca alerts?
No. Visa RDR handles Visa disputes, and Ethoca alerts handle non-Visa disputes. A single payment goes through only one of them.
Why was an alert not refunded automatically?
Alerts are refunded only while your enrollment status shows Enrolled. Alerts that arrive while your status is Pending are not refunded. Alerts on payments that can’t be matched to a single transaction go through the normal dispute process instead.
Why did I still receive a chargeback on a non-Visa payment after enrolling?
Not every issuer takes part in Ethoca, so some disputes arrive as chargebacks without an alert first. Disputes that the cardholder raised before your enrollment was confirmed can also still arrive as chargebacks. Respond to these from the Disputes tab as usual.
A deflection stops a dispute before it is filed, without a refund. When a cardholder tells their bank they did not make a purchase, the bank checks the payment against the order details and the customer’s earlier purchases from you. If the evidence shows that the same customer made the purchase, the bank blocks the dispute. You keep the payment, and nothing counts against your dispute rate. A deflection fee applies.
The customer contacts their bank about a Visa or Mastercard charge, usually because they don’t recognize it or believe it is fraud.
2
The Bank Looks Up the Order
The bank requests the order details. Dodo Payments answers automatically with what was purchased and when, the order total, the customer’s account details, and, where available, the IP address used at checkout. Often the cardholder recognizes the purchase at this point, and the inquiry ends.
3
The Network Checks Earlier Purchases
If the cardholder still claims fraud, the network compares the payment with the same customer’s earlier undisputed payments to you. When at least two earlier payments share key details, such as the IP address and email address, the bank blocks the dispute. Visa does this through Compelling Evidence 3.0, and Mastercard through First-Party Trust.
4
The Dispute Is Deflected
No dispute is filed, and no refund is issued. The deflection does not count against your dispute rate.
Deflections work for returning customers. A first-time customer has no earlier payments to compare against, so a fraud claim on their first payment can’t be blocked this way.
Every Dodo Payments business is enrolled in deflections automatically. There is nothing to enable or configure. For pricing, see the Dodo Payments pricing page.
Why did I receive a deflection email but see no dispute?
That is expected. A deflection means the dispute was blocked before it was filed, so there is no dispute to show. The deflection email is your record of it.
Should I refund a deflected payment?
No. The dispute was blocked in your favor, so the payment stands. Refunding it gives up the sale for no benefit.
