A payment dispute occurs when a customer questions or challenges a charge on their account. It's essentially a formal process where the customer asks their bank or card issuer to investigate a transaction they believe is incorrect or fraudulent.

Payment disputes are a natural part of doing business, especially in ecommerce. They can happen for various reasons, ranging from genuine mistakes to intentional fraud. Understanding the payment dispute resolution process is crucial for protecting your business and maintaining positive customer relationships.

Payment methods subject to disputes

It's important to note that multiple payment methods are subject to payment disputes. These include:

• Credit cards

• Debit cards

• Bank transfers

• Digital wallets (e.g. PayPal)

• Buy now, pay later services

However, disputes shouldn't deter you from offering these methods

Here's why:

1. Consumer trust: Offering payment methods with dispute options can increase consumer confidence, potentially leading to higher sales.

2. Wider customer base: These payment methods are popular and widely used, so offering them can help you reach more customers.

3. Dispute prevention measures: Many payment providers, including Mollie, offer tools to help prevent disputes before they occur [2].

4. Fair resolution process: The dispute process is designed to be fair to both merchants and customers, giving you the opportunity to present evidence in your favour.

Remember, while disputes can be challenging, they're a normal part of doing business. With the right strategies and support, you can manage them effectively and continue to grow your business.

Common payment dispute reasons

Customers initiate payment disputes for many reasons. Here are some of the most common ones:

1. Unrecognised transactions: The customer doesn't remember making the purchase.

2. Duplicate charges: The customer was charged multiple times for the same transaction.

3. Incorrect amount: The charged amount differs from the agreed price.

4. Non-delivery of goods or services: The customer didn't receive their order.

5. Product or service not as described: The delivered item doesn't match the description.

6. Subscription cancellation issues: The customer continues to be charged after cancelling their subscription.

7. Fraudulent transactions: Unauthorised use of the customer's payment card.