Dispute Best Practices

 

 

Table of contents

 

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V1

You can find the disputes section in V1 MyStudio:

• Login to V1.
• Go to payments.
• Click into the “needs response” subsection under disputes.

V2

You can find the disputes section in V2 MyStudio:

• Login to V2.
• Go to payments.
• Click into the “transactions” subsection.
• At the top of the page, click “disputes.”

 

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1: Misunderstandings

Sometimes disputes occur because of a customer’s misunderstanding. In this case, the customer can contact their card issuer to withdraw the dispute.

If you agree the customer should keep the funds, accept the dispute instead of asking them to withdraw it. Card networks count all disputes—even withdrawn ones—so accepting it keeps your dispute records cleaner and more consistent.

2: Accepting disputes

If you agree the customer should keep the funds, accept the dispute in MyStudio. To do so:

• In V1, go to payments.
• Click in the “needs response” subsection of disputes.
• Click on the dispute to open the details.
• Accept the dispute.

3: Countering disputes

If you believe the dispute is unwarranted, you can counter the dispute in MyStudio and submit supporting evidence. To do so:

• In V1, go to payments.
• Click in the “needs response” subsection of disputes.
• Click on the dispute to open the details.
• Counter the dispute.
• Follow the best practices from this article for submitting evidence.

For further information on this process in MyStudio, check out our article: Payment Disputes - Stripe

 

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When providing evidence for a countered dispute, be sure to follow this overview of best practices:

• Understand why the customer is disputing the payment.
• Gather evidence relevant to the reason for the dispute.
• Organize evidence documents categorically and chronologically.
• Format the documents correctly and concisely.

 

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• Fraudulent: provide evidence contradicting the specific customer claim. For example, if the customer claimed they didn’t receive a refund, you would present evidence that they did receive a refund. If the customer claimed they didn’t authorize the ongoing membership, you would present evidence of the authorization, terms of service policy, order confirmation, etc. If the customer has done business with you before and didn’t issue fraud or chargeback claims, treat this as a Visa compelling evidence case.
• Product_not_received: customer is claiming they did not receive a product or service. You would provide evidence that they did receive the product or service.

 

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Evidence overall

Background evidence benefits every dispute. Some info is already captured, but other evidence should be provided whenever possible.

MyStudio captured background evidence:

• Billing address
• Customer name
• Email

Provide whenever possible:

• Customer signature
• Receipt and order confirmations
• Product or service detail descriptions, waivers, etc presented at time of purchase
• Relevant sections of terms of service and where this presents during purchase
• Relevant customer communication
• Other

 

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Proof of customer authorization

Proof of customer authorization could include:

• Customer signature
• Order confirmations
• Customer communications
• Etc

 

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Proof of service or delivery

Proof of service or delivery could include:

• Proof of shipment and delivery that include full delivery address (for merchandise purchases)
• Order confirmation that includes customer’s name, especially if the ship to name is different than the card name
• Customer communications
• Screenshots of class attendance logs
• Etc

 

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Proof of terms of service and policy

Proof of your terms of service and policy could include:

• Cancellation policy snippet
• Other relevant sections of your terms of service
• Customer communications
• Screenshot of how the terms of service are presented during checkout

 

 

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Proof of customer dispute withdrawal

Proof of customer dispute withdrawal could include:

• Customer communications
• Official notice from the card issuer or acquiring bank
• Documentation of funds being returned to your account because the issuer reversed the dispute

 

 

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Proof of prior compensation

Proof of prior compensation could include:

• Customer communications
• Refund receipts with dates
• Screenshot of credited amounts (manual credits for upcoming payments, for example)

 

 

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Proof for Visa compelling evidence

Under Visa’s compelling evidence requirements, you must provide:

1. At least two previous undisputed transactions from the customer with your business
   1. Processed at least 120 days before the disputed charge
   2. Must not have resulted in a fraud or chargeback claim
2. Disputed charge matches on at least two data elements across prior transactions
   1. Examples include billing address, email address, phone number, payment, etc.
   2. MyStudio fills out customer details automatically when you are supplying evidence for counters
3. Evidence that it was the same cardholder (or authorized user) who was using the platform/utilizing the services.

 

 

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Proof of customer communications

Customer communications evidence could include:

• Related text or email communications

 

 

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When compiling the evidence for dispute counters, it’s important to organize them for clarity.

Combine similar evidences

Categorize evidence together by type (IE: receipts, order confirmations, communications, policies, etc). You will upload different files per evidence type in MyStudio. Because you can only upload one file per evidence type, it’s recommended to put similar evidence into one file. This means that, as an example, you would have a document for customer communications, a separate document for proof of order, etc.

Order chronologically

Present evidence in the order that transactions and subsequent communications occurred, creating a clear timeline.

Include summaries

Short summaries of each evidence section’s purpose can help guide the card issuer.

 

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Keep it relevant and concise

• Provide only screenshots or parts of documents relevant to the dispute.
  • Example: don’t provide your entire terms of service, only the relevant section and underline the details for emphasis.
• Don’t provide links to outside sources.
• Keep it less than 50 pages (19 pages max for Mastercards), but provide enough evidence to defend your counter.

Tone is important

Succinctly state why the dispute is unwarranted and point to your evidence in a calm, neutral tone. Keep the evidence factual and professional.

Limit file size

• Don’t upload your entire terms of service, only the relevant sections and underline the details for emphasis.
• Keep it less than 50 pages (19 pages max for Mastercards)
• Combined files must be less than 4.5MB

Correct formatting

• File types accepted:
  • PDF
  • JPEG
  • PNG
• Font size: 12 point or larger
• Documents in US letter, portrait orientation
• Avoid color highlighting
• Crop or circle evidence on screenshots
• Describe screenshots in the text and why it supports your counter

 

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If a customer disputes the full amount after you’ve already issued a partial refund, submit proof of that refund with the amount, date, and screenshots. In most cases, the issuer will cancel the original dispute and reopen it for the remaining amount.

 

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Under Visa’s compelling evidence requirements, you must provide:

1. At least two previous undisputed transactions from the customer with your business
   1. Processed at least 120 days before the disputed charge
   2. Must not have resulted in a fraud or chargeback claim
2. Disputed charge matches on at least two data elements across prior transactions
   1. Examples include billing address, email address, phone number, payment, etc.
   2. MyStudio fills out customer details automatically when you are supplying evidence for counters
3. Evidence that it was the same cardholder (or authorized user) who was using the platform/utilizing the services.

 

 

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Who determines whether a countered dispute is won or lost?

Neither MyStudio nor Stripe are responsible for the outcome of countered disputes. The final decision is made by the customer’s bank.

 

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How do I screenshot?

To take a screenshot on your computer:

Macbooks full page screenshot:

1. On your keyboard, press Shift + Command 3

 

Macbooks custom sized screenshots:

1. On your keyboard, press Shift + Command + 4
2. Click and drag the screenshot box

 

Windows full page screenshot:

1. On your keyboard, press Windows key + Print Screen key

 

If you don’t have a Print Screen key or you want to do a Windows custom sized screenshot:

1. On your keyboard, press Windows key + Shift + S
2. Click and drag the screenshot box

 

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How do I compile the evidence into documents based on evidence type?

To combine evidence based on type:

1. Gather the necessary screenshots or document snippets that fall under the same evidence type.
2. Open a new document in Google docs or Microsoft Word.
3. Write a brief summary of the type of evidence presented in the document. Remember to write it professionally and neutral. 
4. Add the screenshots and document snippets into the document.
5. Once everything is compiled, export the document as a PDF.

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How do I save a document as a PDF?

To save a document as a PDF:

1. Go to “file”
2. Click “download.”
3. Download as a PDF

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How do I add a screenshot to a document?

You can either add a screenshot to a document by:

• Copying and pasting the screenshot into the document
• Or clicking “insert” > “image” > “upload from computer”

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What happens if I lose a dispute?

If you either accept a dispute or lose a counter, the dispute will show in the “lost” subsection in MyStudio and the payment will be refunded to the customer. Stripe also charges a small fee for lost disputes.

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What happens if I win a dispute?

If you win a countered dispute, the dispute will show in the “won” subsection in MyStudio.

 

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Can I answer disputes in V2?

Currently you can only view your disputes in V2, but the ability to answer the disputes will be coming soon.

 

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