What Does Dispute Transaction Mean? Well Explained


The advent of several digital operations, such as electronic marketing, online shopping and the like, have brought the phenomenon of transactions dispute.

Transactions dispute might come in different forms, however, the most common rationales why people engage in transactions dispute, are based on, when buyers are unhappy with a particular product which was delivered to them.


The buyer will, therefore, lay down a transaction dispute against that product(s). The result of every transaction dispute, relies on the credit or debit card holder, requesting a refund of money.

Aside from the above situation of transaction dispute, there are also other occurrences in which you will certainly find yourself disputing a particular transaction.

If you are new to the term transaction dispute, then this article is for you, because I will be giving you a complete guide on what transaction dispute means.


What Does Dispute Transaction Mean? 


Before diving into a more technical understanding of what transaction disputes mean, let’s understand what the two terms are, “transaction” and “dispute“.

In simple terms, transaction simply means the flow of money, the nature of a transaction depends on the context where it is being used, buyer-seller engages in money flow, while the buyer is giving out money, the seller receives the money, based on a seller-buyer agreement.


On the other hand, a dispute simply means a disagreement or misunderstanding of something (A General meaning).

Therefore, in merging the two words, transaction dispute simply means, when there occurs a disagreement in a particular transaction.

When a buyer is unhappy with the goods delivered, probably, the buyer will want a refund of money, since the goods delivered weren’t what he was expecting.

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Transaction dispute is mostly between the buyer or customer, and the merchant, the person offering a service. However, there are varied forms of transaction dispute, which you might encounter.

Some of the frequent cases are as follows:


  • Buyers – Sellers Dispute

This is a common dispute that does happen between the buyer and the seller, Online shopping work on an order and delivered fashion.

Your order something, by making payment of it, and after some working days, you will get your products delivered to your address.

However, sometimes, people do not receive any goods, and therefore, will have to make transactions, requesting a refund of Money, directly from the cardholder.


  • Failure to Recognize a particular transaction

This is also another frequent reason why most people engage in transaction disputes, times when you are unable to figure out a particular transaction on your bank statement.

You can file a transaction dispute, for such cases, however, in cases like this, you must critically review the transaction, to ensure that you aren’t the one who had made the transaction.


  • Error

Most payment gateway does have certain errors, that may be a result of network glitches, or probably maintenance, that could cause double debit of the seller’s card.

Therefore, to get a refund of the second money that has been debited from your account, you can simply make a transaction dispute, in the request for a refund of money.


  • Fraudulent Activities

Most people could fraudulently use your bank card to make a payment online, without authorization from you. If you discover this, you can simply file a transaction dispute with the cardholder.

In making a transaction dispute, comes through requesting for a Chargeback. A chargeback is simply a case, where a buyer decides to file a dispute for a refund of money, directly to the bank or financial institution itself, rather than the merchant.

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How to Dispute a Billing Error?


How to Dispute a Billing Error?


The process of disputing a billing error comprises both the customer, the merchant and the bank issuing the card, however, whenever you file a billing error against a merchant to the bank.

The Bank will, therefore, contact the merchant, in person, in request, for certain documents that could serve as evidence, at the moment, the money will be given a restriction on the merchant’s account, pending still after the investigation.

The following documents will be required by the merchant: A signed copy of the transaction receipt; and/or, A Copy of the order or invoice; and/or A copy of any correspondence received by you from the cardholder.

After every investigation, and you are clear, the money will be sent back to you, by debiting the merchant account.


What Does Dispute Transaction Mean on Debit Card?


Dispute Transactions on debit cards occur when a customer contacts the card holder, probably the bank, in a request for a refund of money back to their bank account.

This occurs with most cards, such as the Visa, Master Card, and America Express, it is a way to ensure that customers get their money back after a dispute in a transaction.


Does Dispute Mean Refund?


Yes, Dispute also means refund in a particular context, it is a process where a customer files a dispute for a particular transaction, in requesting a refund back to their account.

These two terms are used interchangeably, they all mean a refund of money.



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Video Guide





The dispute in the transaction is quite a Popular terminology you will find among people using their cards to make payments online. In short, it is a process where a customer feels unhappy about a transaction, and therefore needs a refund of Money.

In this article, I have explained everything you need to know in understanding what a transaction dispute is, and how people engage in a transaction dispute.

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