The chargeback lifecycle: what happens from the dispute to the final decision
By Zevron · 2 min read · Updated
The stages
- The cardholder disputes the charge with their bank (the issuer). The window to do this is often around 120 days from the transaction, and longer in some cases.
- The issuer files a chargeback through the card network. Your processor (the acquirer) receives it.
- You’re notified and debited. The disputed amount and a dispute fee typically come out of your balance while the case is open.
- You respond with evidence by the due date. This is the representment. It’s one submission on Shopify Payments and Stripe.
- The issuer reviews your response against the network’s rules for that reason code.
- The outcome: the issuer accepts your response and the money returns to you, or it stands and the loss is final. In some cases the issuer can escalate further.
Escalation
If the issuer disagrees with your response, networks provide further steps, such as a pre-arbitration and an arbitration decision by the network. These are rare and costly, and are usually only worth it for large amounts. Check your processor’s terms for how it handles them.
Where you can change the outcome
| Stage | What you can do |
|---|---|
| Before a dispute | Prevent it: reminders, a descriptor, an easy cancellation flow. |
| On an alert | Refund inside the window. See chargeback alerts. |
| After the dispute is filed | Respond with evidence, or refund or concede. |
| After the decision | Little. The ruling is usually final, so the response stage is the one to get right. |
Timing
Your due date is set by the processor and shown on the dispute. Banks often take weeks to decide after you submit. Miss the due date and the dispute is lost, so treat the deadline as the first fact to record. See how to respond to a Shopify chargeback.
Questions
How long does a chargeback take?
You respond by a due date set by your processor, and banks often take weeks to decide after that. Exact timing varies.
What is representment?
Your response to a chargeback, with evidence, sent through your processor for the issuer to review.
Can I respond after the due date?
No. An unanswered dispute is lost, so record the due date as soon as it arrives.
Can I appeal if I lose?
Networks provide escalation steps, but they’re rare and costly. The response stage is the one to get right.