How to Handle Disputes

Last updated: January 23, 2026

When a cardholder disputes a charge, the card network investigates and makes a final decision. You can either challenge the dispute by submitting evidence or accept it. Challenging disputes helps keep your chargeback ratio low, which protects your account standing.

What Happens When You Receive a Dispute

When a customer files a dispute, two things happen immediately:

  1. The disputed amount is pulled from your Frame balance

  2. A dispute fee is charged

Both amounts are held until the card network reaches a decision. Frame does not influence the outcome but provides guidance to help you respond effectively.

📩 How Frame Notifies You

When a dispute is filed against your account, you will receive an email notification from Frame containing:

  • The disputed transaction details

  • The reason code explaining why the customer disputed the charge

  • Recommended evidence to submit based on the dispute type

Review this information carefully to decide whether to challenge or accept the dispute.

Deciding Whether to Challenge

Consider challenging if:

  • You believe the dispute is invalid

  • You have evidence that counters the customer's claim

Consider accepting if:

  • The customer's claim is legitimate

  • You lack evidence to support your case

Important: Taking no action counts as accepting the dispute.

Submitting Evidence

If you choose to challenge, gather and submit your evidence within the deadline specified in your notification email. You have one opportunity to submit evidence, so collect everything before responding.

The type of evidence you need depends on the reason code. For Example:

Reason

Helpful Evidence

Product not received

Delivery confirmation, tracking number, signature proof

Unauthorized transaction

Customer communication, purchase history, IP address logs

Product not as described

Product photos, listing details, return policy

The evidence you submit is the only information the card issuer uses to make their decision. There is no back-and-forth communication.

Preventing Future Disputes

Review your past disputes to identify patterns. Common prevention strategies include:

  • Using clear billing descriptors customers recognize

  • Sending order confirmations and shipping updates

  • Making your refund and return policies easy to find

  • Responding quickly to customer inquiries before they escalate

Inquiries

Sometimes you may receive an inquiry instead of a formal dispute. An inquiry is a preliminary information request from the card network. Responding promptly and thoroughly to inquiries can prevent them from becoming disputes.