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Dispute flow of cards

A dispute can go through different stages and has different indications to merchant’s business. It is crucial for merchants to understand dispute flow before taking any actions.

RFI (Requested For Information) Process

As a merchant you will receive an RFI when consumer cannot recognize the payment or does not agree to be charged, seeking further information about this payment from merchants. This may also happen in a fraudulent transaction that consumer cannot recognize the payment. In order to help consumer recognize the payment and avoid further disputes, merchants should provide sufficient information about this payment to claim the legitimacy of the payment. At this moment, no funds are deducted from merchants’ next settlement batch.

Dispute Process

As a merchant, you will receive a dispute if consumer wants to get his money back and file a dispute accordingly. A dispute can be filed due to different reasons. It may follow RFI process or skip RFI process. When dispute happens, disputed amount will be debited from merchants’ next settlement batch.

After receiving the dispute, merchant will have to respond either accept the dispute or rebut the dispute with solid evidence to prove the dispute is invalid. Merchant can respond directly via Airwallex Webapp. To be noted, if your submitted evidence is declined by consumer, Airwallex will accept the dispute to avoid any potential arbitration cases in the future.

Different payment methods may have slightly different dispute process and merchant is required to respond in a required manner.

Visa

Collaboration flow

Visa collaboration flow is applied to dispute reason type of consumer disputes and processing errors.

Visa collaboration flow

Get notified of first dispute

The issuer files the first dispute to the merchant with stated dispute reason. Airwallex will notify merchants on Airwallex Webapp of dispute details. At the same time, the stated disputed amount will be deducted from merchants’ next settlement batch. As a merchant, you can choose either accept the dispute or submit the evidence to defend the dispute.

Dispute reversed

For collaboration disputes, the disputed amount is returned in merchants’ next settlement batch when Airwallex represents the evidence that merchants upload on Airwallex Webapp. If merchant accepts the dispute, Airwallex will accept the dispute on behalf of the merchant to scheme, thus no credit of funds will happen.

Get notified of pre-arbitration

Cardholders can challenge the merchant supplied evidence and ask their issuer bank to continue the dispute process by filing a pre-arbitration. Only under collaboration flow, a pre-arbitration can be filed by the issuer.
After Airwallex receives the pre-arbitration case, we will automatically accept the case and close the dispute in order to prevent any potential arbitration cost if we continue to defend the case. The returned amount will be debited again from merchants’ next settlement batch.

Allocation flow

Visa Allocation flow is applied to Visa dispute with reason type of fraud and authorization cases.

Visa allocation flow

Get notified of first dispute

The issuer files first dispute to merchant with stated dispute reason. Airwallex will notify merchants on Airwallex Webapp of dispute details. At the same time, the stated disputed amount will be deducted from merchants’ next settlement batch. As a merchant, you can choose either accept the dispute or submit the evidence to defend the dispute. If merchant decides to defend the dispute by supplying the evidence via Airwallex Webapp, Airwallex will file a pre-arbitration to the issuer on behalf of merchants. No funds will be credited when pre-arbitration is filed. If issuer accepts the supplied information, funds will be credited back in merchants’ next settlement batch.

Get notified of pre-arbitration response

If a cardholder challenges the supplied evidence, they can ask their issuer bank to decline the pre-arbitration case. Once Airwallex receives the pre-arbitration response from the issuer, Airwallex will automatically accept the pre-arbitration response and close the dispute in order to prevent any potential arbitration cost.

Mastercard

Mastercard dispute process is quite similar to Visa collaboration flow that merchants can rebut the dispute when first dispute comes and if the issuer files a pre-arbitration back, Airwallex will accept the pre-arbitration on behalf of the merchant.

MC Collaboration flow

Get notified of first dispute The issuer files first dispute to the merchant with stated dispute reason. Airwallex will notify merchants on Airwallex Webapp of dispute details. At the same time, the stated disputed amount will be deducted from merchants’ next settlement batch. As a merchant, you can choose either accept the dispute or submit the evidence to defend the dispute.

Dispute reversed For collaboration disputes, the disputed amount is returned in merchants’ next settlement batch when Airwallex represents the evidence that merchants upload on Airwallex Webapp. If a merchant accepts the dispute, Airwallex will accept the dispute on behalf of the merchant to scheme, thus no credit of funds will happen.

Get notified of pre-arbitration Cardholders can challenge the merchant supplied evidence and ask their issuer bank to continue the dispute process by filing a pre-arbitration. Only under collaboration flow, a pre-arbitration can be filed by the issuer.
After Airwallex receives the pre-arbitration case, we will automatically accept the case and close the dispute in order to prevent any potential arbitration cost if we continue to defend the case. The returned amount will be debited again from merchants’ next settlement batch.