Dispute Overview
Dispute Overview
When a cardholder disputes a card transaction, the issuer may send an inquiry or dispute to PayCools through the card network or another channel. PayCools notifies you to review the case and respond. Dispute stages, response deadlines, and handling requirements vary by card network and channel; the dispute notification sent by PayCools is the authoritative source.
How Disputes Work
When PayCools receives a dispute, it generally follows this process:
- Receive and verify the dispute: After receiving a dispute notification from the issuer, card network, or channel, PayCools verifies the related transaction and funds.
- Send a dispute notification: PayCools sends you a notification listing the transaction, dispute amount, reason, proposed hold amount, and response deadline.
- Handle the funds: Depending on the dispute, PayCools may freeze the disputed funds and applicable handling fees. Frozen funds cannot be used until the dispute is resolved.
- Wait for your response: You can accept the dispute or submit supporting evidence before the deadline. PayCools forwards your evidence to the relevant channel.
- Share the outcome: After receiving the result from the issuer, card network, or channel, PayCools informs you and handles the funds accordingly.
Dispute Stages
| Stage | Description |
|---|---|
| Inquiry | The issuer, card network, or channel requests further confirmation of the transaction. PayCools contacts you to verify the transaction and collects the required materials. Responding promptly helps clarify the transaction and avoid escalation. |
| Dispute or chargeback | After the cardholder formally disputes the transaction, PayCools may freeze the related funds and notify you to accept the dispute or submit evidence. |
| Pre-arbitration and later stages | If the dispute remains unresolved, the case may enter pre-arbitration or later stages. PayCools contacts you as required by the channel and explains the materials and deadlines. |
The actual stages depend on the payment method, dispute reason, and channel rules.
Dispute Notifications
PayCools primarily sends dispute notifications to your notification email address. You may also receive information through the merchant communication group agreed with PayCools.
A dispute notification usually includes:
- PayCools transaction ID;
- Your order number;
- Transaction amount;
- Transaction time;
- Dispute reason;
- Proposed hold amount;
- Response deadline.
After receiving a dispute notification, first verify the transaction information and dispute reason, then decide whether to accept the dispute or submit evidence.
Disputed Funds
After a dispute arises, PayCools may freeze funds equal to the dispute amount. Some disputes may also incur applicable handling fees; the exact amount is stated in the dispute notification.
After the dispute is resolved:
- If the evidence is accepted, PayCools releases the funds according to the outcome;
- If you accept the dispute or the final outcome requires a debit, the funds are deducted from your balance;
- If the dispute is withdrawn, the funds are handled according to the final outcome.
The dispute amount may differ from the original transaction amount; the amount in the PayCools dispute notification is authoritative.