About Disputes

Create Chargeback and Disputes using the Razorpay Dashboard or APIs.

A dispute is a situation where a customer or the issuing bank questions the validity of payments. It may arise due to unauthorised charges, failure to deliver the promised merchandise, or excessive charges levied by the business.

Dispute PhasesπŸ”—

A dispute can be in any of the following phases:




A dispute is raised by the bank when it suspects a transaction to be fraudulent based on the risk analysis.


A request is initiated by the customer with their issuer bank for additional information about a transaction. This is essentially a "soft" chargeback.


A refund claim initiated by the customers with their issuer banks. In such cases, the bank starts an official inquiry.


A chargeback that you have won and is again challenged by the customer for the second time.


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.

Handy Tips
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.

Dispute StatesπŸ”—

A dispute can have any of the following statuses (in the Razorpay system).

Dispute States




Indicates that the dispute has been created.

Under Review

Indicates that the issuing bank has reviewed the dispute.


Indicates that the bank has accepted the remedial documents, and you have won the chargeback.


Indicates that the bank did not accept the remedial documents and you have lost the chargeback.


Indicates the state when a fraudulent transaction is closed after you provide details of the transaction or make a refund to the customer. This is seen in fraudulent transactions only.

Disputes Process FlowπŸ”—

Following is the process flow for Disputes:

  1. A dispute is constantly raised by the issuing bank. However, it can be initiated by the customer as well.

    1. Initiated by the issuing bank: The issuing bank suspects a fraudulent transaction and asks for your justification.
    2. Initiated by the customer: The customer claims that the transaction was unauthorized and raises it with the issuing bank.
  2. You will be notified about the dispute.

    • Accept the dispute. The customer is refunded. In the case of fraud, you must refund the amount. In other cases, Razorpay will auto-refund the amount.
    • Contest the dispute by submitting evidence to prove that the transaction was fair.
      • If you contest, the documents are sent to the customer’s bank. The bank reviews the case and provides a verdict.
      • If you lose the dispute, the amount would be deducted from your account and is sent to the customer.

Disputes in International Payments
For a dispute raised for international payment, the amount deducted from your account will be based on the day's currency conversion rate when the dispute was created. The currency conversion rate is dependent on the rate charged by processing banks. This conversion rate may vary from that on the day when the payment was created.


Notifications are sent when disputes are created. These notifications are in the form of:

  • Emails
    You will receive an email notification when a dispute is created. The email contains details of the transaction, amount and cause of dispute.
  • Webhooks
    You can subscribe to Webhook events to receive alerts whenever a dispute is created or there is a change in status.