Dispute States

Learn about the disputes, protested charges, and the chargeback lifecycle.

Whether you're managing disputes through the dashboard or API, the response_state and state of the Dispute details what steps to take to move the Dispute forward:

Dispute Response States

response_state Description
NEEDS_RESPONSE The Merchant needs to respond to the Dispute by Dispute#respond_by. For details on how to respond to a Dispute, see Responding to Disputes.
RESPONDED The issuing bank has received the evidence and actively reviewing it. No action needed from the Merchant.
ACCEPTED The Merchant has accepted the Dispute. When a Dispute is accepted, you concede that the dispute is not worth challenging or representing. For details on how to accept a Dispute, see Accepting a Dispute.
NO_RESPONSE_ALLOWED The final Dispute#response_state when a Dispute is either WON or LOST.
UNKNOWN Dispute details couldn't be submitted to the processor. Comes up when testing Disputes in sandbox or on the DUMMY_V1 processor.

Dispute States

state Description
INQUIRY Used by networks to indicate they're requesting additional information and evidence. INQUIRY indicates the Dispute got created, but funds haven't moved.
PENDING The initial state of a formal Dispute. The issuing bank is still allowing evidence to be submitted to defend against the dispute.
WON The issuing bank has overturned the dispute and ruled in favor of the Merchant. The credit gets reversed, and Finix returns the dispute amount to the Merchant .
LOST The issuing bank has upheld the dispute. The cardholder will keep the credit, and the dispute amount does not return to the Merchant .

Dispute Reasons

The reason of the Dispute provides additional details regarding why the dispute got filed:

reason Description
CLERICAL An error occurred while processing the sale, or the cardholder has an issue with the transaction and refuses the goods.
FRAUD The cardholder claims they didn't approve or authorize the transaction. FRAUD is the primary reason disputes get created.
INQUIRY The Merchant didn't respond by the respond_by date, or the transaction got flagged for review due to the network's internal standards.
QUALITY The cardholder has issues with the quality of the goods or services received. Reasons can include receiving damaged goods or a service that doesn't match what's promised.
TECHNICAL A technical issued caused the transaction to process funds incorrectly.

Disputes get created with a PENDING state. Dispute#state updates with the decision of the issuing bank. The bank's decision is final for all parties. You can’t overturn a lost dispute, and your customer can’t overturn a dispute decided in your favor.

If the Dispute#state gets updated to INQUIRY or PENDING than the issuing bank is requesting additional information, from the seller, showing the transaction was legitimate. For steps on how to upload evidence and respond to the issuing bank, see Responding to Disputes.