How to resolve disputes on Paystack

Disputes are an inevitable part of running an online business, especially when dealing with digital payments. Customers may request refunds for various reasons, such as dissatisfaction with a product, unauthorized transactions, or failed deliveries.

Paystack, a popular payment gateway in Africa, provides a system for managing these disputes. Understanding how to effectively navigate the Paystack dispute resolution process is crucial for maintaining a healthy business relationship with your customers and protecting your revenue. By familiarizing yourself with the available tools and procedures, you can efficiently address customer concerns, minimize financial losses, and uphold your business’s reputation.

To resolve disputes on Paystack, you need to be aware of the types and channels of dispute resolution. In this article you would understand the various types and channels of resolution.

Types of Disputes

There are two types of disputes related to a transaction. These are;

• Chargeback
• Fraud claim

What is a chargeback

A chargeback is when a customer disputes a charge on their credit or debit card statement with their bank. If the customer holds satisfactory proof, the merchant has to refund the money, and they may also have to pay a fee.

What is a Fraud claim

This type of dispute emanates from unauthorized use of a credit or debit card by parties other than its owner.

When dealing with disputes, you can either accept them, which means you will process a full or partial reversal to the customer, or you can decline them. However, to decline a dispute, you will need to provide some supporting information.

What constitutes supporting information

The exact constituent of a supporting information would vary dependent of type of transaction. In general the following would constitute supporting information.

• Transaction information: This includes the date, amount, and location of the transaction.
• Cardholder information: This includes the cardholder’s name, card number, and billing address.
• Merchant information: This includes the merchant’s name and contact information.
• Reason for the dispute: This is a statement from the cardholder explaining why they are disputing the charge.
• Evidence supporting the dispute: This could include anything from a copy of a receipt to a police report.

Channels of Dispute Resolution

Paystack currently provide three channel points to merchants for resolving dispute. These are;

• Paystack Dashboard via their website.
• Paystack mobile application.
• Paystack Dispute API available to integrators and bulk managers.

If you fail to resolve a dispute within the specified timeline, Paystack will automatically deduct the transaction amount from your settlements and process a reversal to the customer. The automatic resolution timeframe for chargebacks on Paystack is 16 hours and may vary on county basis. Paystack sends reminders every 4 hours until the chargeback claim is resolved or auto-accepted.