Dispute flow of cards
A dispute can transition through different stages and has various implications for your business. Hence, you need to understand the dispute flow before taking action.
RFI (Requested For Information) process
You will receive an RFI when the shopper cannot recognize the payment or does not agree to be charged, seeking further information about this payment from you. This may also happen in a fraudulent transaction where the shopper cannot recognize the payment. In order to help the shopper recognize the payment and avoid further disputes, you should provide sufficient information about this payment to claim the legitimacy of the payment. At this time, no funds are deducted from your next settlement batch.
Pre-chargeback process
You will receive a dispute in pre-chargeback stage if the shopper has filed a dispute, but Airwallex managed to resolve it before it became a chargeback. Airwallex will apply so called pre-chargeback programs, which typically resolve disputes by automatically refunding the transaction and can help you to save money by avoiding chargeback fees.
For more information, see the documentation of pre-chargeback programs .
Mastercard is planning to launch a similar solution to better manage disputes -- Airwallex will keep you informed on the changes.
Dispute process
You will receive a dispute if the shopper wants to get their money back and progresses to file a dispute. A shopper can file a dispute for different reasons, and it may or may not follow the RFI process. When a dispute happens, the disputed amount will be debited from your next settlement batch.
After receiving the dispute, you will have to respond by either accepting the dispute or rebutting the dispute with solid evidence to prove that the dispute is invalid. You can choose to respond directly via the Airwallex web app. Note that if your submitted evidence is declined by the shopper, Airwallex will accept the dispute to avoid any potential arbitration cases in the future.
Different payment methods may have a slightly different dispute process and you are required to respond accordingly.
Visa
Collaboration flow
Visa collaboration flow is applied when dispute reason type is consumer disputes or processing errors.
Get notified of first dispute
The issuer files the first dispute against you with the stated dispute reason. Airwallex will notify you on the Airwallex web app about the dispute details. At the same time, the stated disputed amount will be deducted from your next settlement batch. You can choose to either accept the dispute or submit the evidence to defend the dispute.
Dispute reversed
For collaboration disputes, the disputed amount is returned in your next settlement batch when Airwallex represents the evidence that you upload on the Airwallex web app. If you accept the dispute, Airwallex will accept the dispute on behalf of you and present to the scheme, thus no credit of funds will occur.
Get notified of pre-arbitration
Shoppers can challenge the evidence supplied by you and ask their issuer bank to continue the dispute process by filing a pre-arbitration. An issuer can file a pre-arbitration only under the collaboration flow. 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 your next settlement batch.
Allocation flow
Visa allocation flow is applied to Visa disputes when the reason type is fraud or authorization cases.
Get notified of first dispute
The issuer files the first dispute against you with the stated dispute reason. Airwallex will notify you on the Airwallex web app about the dispute details. At the same time, the stated disputed amount will be deducted from your next settlement batch. You can choose to either accept the dispute or submit the evidence to defend the dispute. If you decide to defend the dispute by supplying the evidence via the Airwallex web app, Airwallex will file a pre-arbitration case against the issuer on behalf of you. No funds will be credited when a pre-arbitration case is filed. If the issuer accepts the supplied information, funds will be credited back in your next settlement batch.
Get notified of pre-arbitration response
If the shopper 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's dispute process is quite similar to the Visa collaboration flow where you can rebut the dispute when you receive the first dispute and if the issuer files a pre-arbitration back, Airwallex will accept the pre-arbitration on behalf of you.
Get notified of first dispute The issuer files the first dispute against you with the stated dispute reason. Airwallex will notify you on the Airwallex web app about the dispute details. At the same time, the stated disputed amount will be deducted from your next settlement batch. You can choose to either accept the dispute or submit the evidence to defend the dispute.
Dispute reversed For collaboration disputes, the disputed amount is returned in your next settlement batch when Airwallex represents the evidence that you must upload on Airwallex web app. If you accept the dispute, Airwallex will accept the dispute on behalf of you to the scheme, thus no credit of funds will occur.
Get notified of pre-arbitration
Shoppers can challenge the evidence supplied by you and ask their issuer bank to continue the dispute process by filing a pre-arbitration. An issuer can file a pre-arbitration only under the collaboration flow.
After Airwallex receives the pre-arbitration case, we will automatically accept the case and close the dispute in order to prevent any potential arbitration costs if we continue to defend the case. The returned amount will be debited again from your next settlement batch.