For online sellers especially, chargebacks are one of the most expensive problems in payments. One dispute can cost you the sale, the product you already shipped, and a chargeback fee — and too many can put your merchant account at risk.
What is a chargeback?
A chargeback happens when a customer asks their bank to reverse a card payment. The bank pulls the money back from you, usually adds a fee, and the dispute counts against your chargeback ratio — the share of your transactions that end in a dispute.
Why does the chargeback ratio matter?
Card networks monitor it closely. Cross their thresholds and you can be placed in a monitoring program with extra fees — or your account can be closed. That's why preventing chargebacks matters even when the amounts are small.
What is a dispute alert?
A dispute alert is an early warning. When a cardholder contacts their bank to dispute a charge, participating banks can send an alert before it becomes a formal chargeback. You then have a short window to refund the customer.
If you refund in time, the dispute is usually closed without becoming a chargeback — so no chargeback fee and no hit to your ratio.
Do dispute alerts stop every chargeback?
No. Not every bank participates, and some disputes can't be resolved with a refund. But alerts can catch a meaningful share of disputes early, especially for online and subscription businesses.
Do I have to switch processors to get dispute alerts?
Not necessarily. Chargeback protection can often be set up alongside your current processor. Enrolment usually starts after your account is active and takes a short time to go live, so it's worth setting up before you need it.
How do I get started?
See how our chargeback protection works, or check whether your processing rate is high while you're at it — online businesses often pay the most on both counts.