Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is Disputed Charges?
Disputed Charges measures the total value of charges that have been challenged and may be reversed. This metric represents the amount of money that could potentially be deduced from your net charges.
Disputed Charges Formula
How to calculate Disputed Charges
Imagine you manage an e-commerce website where a customer has initiated a dispute for a $100 payment they made through their card issuer. This escalates into a chargeback of $100 along with a $15 dispute fee. The total Dispute Charges amount taken from your account in this scenario would be $115.
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How to visualize Disputed Charges?
Use a summary chart to keep track of your Disputed Charges in comparison to a previous time period. Use this to ensure the number goes down over time.
Disputed Charges visualization example
ChartMeasuring Disputed Charges
More about Disputed Charges
Disputed Charges measures the total value of challenged payments that could result in chargebacks. A chargeback is when your payment processing platform deducts a disputed charge amount from your account to settle the dispute. You would generally also be charged with a dispute fee in addition to the original dispute amount, as well as any currency conversion fees and disparities.
To avoid disputed charges, make sure you communicate with your customers in a timely fashion. Respond to your customer complaints and issue refunds where applicable, preventing disputed charges that would go through anyway if you are determined to be in the wrong by the card issuer and the payment gateway.
If you do not accept the dispute, you are required to submit evidence to your payment processing platform for the dispute to be ruled in your favor in genuine cases. If you do not respond to the dispute within the evidence submission date assigned to you, there will be a chargeback in most cases, resulting in the disputed amount being deducted from your account automatically.
Disputed Charges Frequently Asked Questions
How do chargebacks hurt my business?
If a disputed charge goes through, you face a chargeback where the disputed amount is taken from your account and credited to the customer. Chargebacks hurt your business by costing you additional fees even if the chargeback is canceled, as well as hurting your reputation.