Understanding Disputes

What Are Disputes?

Disputes, commonly known as chargebacks, occur when a customer contests a transaction on their card statement with their bank. This can result in the reversal of the transaction, causing you to lose the sale amount, incur additional fees, and most importantly put your account at risk of closure with our payment processor.

Tips to Avoid Disputes

Avoiding disputes all together is the best way to deal with them. We have a couple tips that will help save your business from unwanted headaches:

  • Responsive Customer Service: Communication is key. You should address customer questions and issues within a timely manner to prevent disputes from arising.
  • Flexible Refund Policies: Offer easy and clear return and refund policies to avoid chargeback fees and the loss of revenue.
  • Early Dispute Alerts: Whop offers an auto-refund option on your Disputes page to prevent disputes from being made.

Benefits of Early Dispute Alerts

Whop’s Early Dispute Alerts system provides immediate notifications from Visa and Mastercard, allowing you to:

  • Proactively Resolve Issues: Refund small transactions automatically or handle larger ones manually.
  • Minimize Chargeback Fees: Address disputes before they escalate, reducing fees.
  • Reduce Risk of Account Closure: Proactively managing disputes helps maintain a lower dispute rate, ensuring your account remains in good standing.
  • Improve Customer Experience: Clarify transaction details, reducing confusion and disputes.

For more information, check out our Early Dispute Alerts help article.

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