A dispute can be in any of the following phases:
|Fraud||A dispute is raised by the bank when it suspects a transaction to be fraudulent based on the risk analysis.|
|Retrieval||A request is initiated by the customer with their issuer bank for additional information about a transaction. This is essentially a "soft" chargeback.|
|Chargeback||A refund claim initiated by the customers with their issuer banks. In such cases, the bank starts an official inquiry.|
|Pre-Arbitration||A chargeback that you have won and is again challenged by the customer for the second time.|
|Arbitration||A chargeback that you have won and is rechallenged for the third time by the customer, and the card networks directly get involved. These disputes are usually costly.|
The pre-arbitration and arbitration dispute phases are usually long-drawn, complicated, and challenging. It is advised to take remedial action during the retrievals and chargeback phases to avoid complications.