A dispute in Tonder is a formal complaint initiated by a customer through their card issuer, challenging the validity of a transaction. Also known as "chargebacks".
Disputes are part of the card network ecosystem and follow strict timelines and rules defined by issuers, processors, and card schemes.
Understanding how disputes work—and how to respond correctly—is critical to protecting revenue and maintaining healthy payment operations.
What Is a Dispute?
A dispute occurs when a customer contacts their bank and claims that a transaction should not have been charged.
Common reasons include:
Unauthorized or fraudulent transactions
Goods or services not received
Duplicate charges
Dissatisfaction with the product or service
Once initiated, the dispute is routed through:
Issuer → Card Network → Processor → Tonder → Merchant
Dispute Lifecycle in Tonder
Disputes follow a structured lifecycle. Each stage requires specific actions—or inaction—from the merchant.
Dispute Statuses Explained
Needs Response
What it means
A customer has filed a dispute
Action is required from the merchant
What you must do
Submit supporting evidence within the allowed timeframe
Examples of evidence
Proof of delivery or service usage
Customer acceptance or confirmation
Transaction logs
User account activity
⚠️ If no response is submitted, the dispute will be automatically lost.
In Review
What it means
Evidence has been submitted
The processor and card issuer are reviewing the case
What happens next
No further action is required unless additional documentation is requested
This phase depends entirely on external parties (banks and networks)
Won
What it means
The card issuer ruled in your favor
The disputed funds are returned to the merchant
Outcome
The dispute is closed successfully
No further action is required
Lost
What it means
The dispute was ruled in favor of the customer
This can happen if:
Evidence was insufficient
No response was submitted
Issuer sided with the customer
Outcome
Funds are permanently debited
Dispute fees may apply depending on the processor
How to Manage Disputes in the Tonder Dashboard
You can view and manage disputes directly from the Tonder platform.
Steps
Go to Dashboard
Navigate to Online Payments
Click Disputes
Select the dispute you want to review
Check:
Reason code
Deadline
Required evidence
Upload your response and submit
Important Timelines
Disputes have strict response deadlines
Deadlines are defined by card networks and issuers
Late responses result in automatic losses
Always respond as early as possible, even if documentation is still being gathered.
Operational Best Practices
Monitor the Disputes section daily
Treat Needs Response as high priority
Use clear, concise, and relevant evidence
Avoid generic explanations—issuers favor factual proof
Keep internal records for all high-value transactions
Why Dispute Management Matters
Poor dispute handling can lead to:
Revenue loss
Higher dispute ratios
Increased processing fees
Risk of account monitoring or restrictions
Strong dispute management improves:
Win rates
Processor trust
Long-term payment stability
Expected Timeframes
After evidence is submitted and the dispute moves to In Review, the following timelines apply:
Minimum: ~30 days
Average: 45–60 days
Maximum: Up to 90 days in complex cases
These timelines are defined by card schemes (Visa, Mastercard, etc.) and issuing banks.
What Happens During This Time
While the dispute is In Review:
Tonder forwards the evidence to the card network
The issuing bank evaluates the documentation
The cardholder may be contacted by their bank
No action is required from the merchant unless additional evidence is requested
This stage is out of Tonder’s control.
How 3DS Affects Disputes
If a transaction:
Successfully completed 3DS authentication, and
The dispute reason is fraud-related (e.g. Unauthorized Transaction)
Then:
Liability is typically transferred to the issuer
The merchant has a much higher probability of winning
Evidence requirements are minimal, as the issuer already validated the cardholder
⚠️ Liability shift applies only to specific fraud reason codes and successful 3DS authentication.
What 3DS Does NOT Cover
3DS does not protect against disputes related to:
Goods or services not received
Product dissatisfaction
Refund not processed
Duplicate charges
For these cases:
Standard dispute rules apply
Supporting evidence is still required
The issuer evaluates merchant documentation
Merchant Action When 3DS Is Involved
Even if the transaction used 3DS:
The dispute will still appear in the Disputes section
You may still see Needs Response
You should submit available evidence, including:
3DS authentication result
Transaction logs
User account activity (if applicable)
Submitting evidence ensures the liability shift is correctly applied.
Outcome Expectations
Fraud disputes + successful 3DS:
→ High probability of WonNon-fraud disputes:
→ Outcome depends on evidence quality, regardless of 3DS
Important Notes
Dispute timelines cannot be accelerated
No intermediate status updates are provided by issuers
Silence during review is normal and expected
Final outcomes are communicated only once the issuer makes a decision
