First chargeback

A first chargeback is the initial phase in the dispute lifecycle, initiated when your consumer questions a transaction. Their issuing bank initiates the dispute through the payment brand to the acquirer and reverses the transaction. You then conduct research to determine whether to accept the chargeback or contest it by providing evidence. This stage is crucial to the resolution process and can impact your financial standing and reputation. Prompt and careful handling is essential.

First chargeback state machine

The following state machine diagram shows the various disputeStatus transitions for a first chargeback:

Tip

Even after you initially accept a dispute (ACCEPTED disputeStatus), you are permitted to challenge the dispute (CHALLENGED_MERCHANT disputeStatus) within the responseDueDate time limit.

Note

if a chargeback reversal is received in any intermediate disputeStatus, the disputeStatus changes to CLOSED.

For inquiries related to a first (initial) chargeback, responses typically include the fields disputeStatus and outcome for that chargeback. These fields are critical for managing the dispute lifecycle. The following tables explain the permitted values for each field.

First chargeback status types

First chargeback status types
Dispute status type	Description	Potential next status type
`NEW`	Dispute case received.	`CHALLENGED_MERCHANT` `NEEDS_RESPONSE` `CHALLENGED_JPMC` `ACCEPTED` `CLOSED`
`NEEDS_RESPONSE`	Dispute pending your documents.	`CHALLENGED_MERCHANT` `ACCEPTED` `EXPIRED` `CLOSED`
`NEED_ADDITIONAL_INFORMATION`	More information requested by us.	`CHALLENGED_MERCHANT` `ACCEPTED` `EXPIRED` `CLOSED`
`ACCEPTED`	You accepted the liability.	`CHALLENGED_MERCHANT` End of dispute cycle
`CHALLENGED_JPMC`	Dispute challenged on your behalf by us.	`UNDER_ISSUER_REVIEW CLOSED`
`UNDER_ISSUER_REVIEW`	Dispute has been returned to the issuer for review.	`CLOSED`
`CHALLENGED_MERCHANT`	Dispute challenged by you.	`NEED_ADDITIONAL_INFORMATION` `CHALLENGE_DENIED` `UNDER_ISSUER_REVIEW` `CLOSED`
`CHALLENGE_DENIED`	Case cannot be challenged due to no representation rights per network rules.	End of dispute cycle
`CLOSED`	Dispute cycle complete.	End of dispute cycle
`EXPIRED`	Dispute has expired as due date has passed.	End of dispute cycle

First chargeback outcome types

First chargeback outcome types
Dispute outcome type	Description
`PENDING`	Decision or result pending; outcome not determined.
`WON`	Dispute fully won; disputed amount is recovered.
`PARTIALLY_WON`	Dispute partially won; only a portion of the disputed amount is recovered.
`LOST`	Dispute lost; no amount is recovered.

First chargeback operations

Overview

First chargeback

First chargeback state machine

First chargeback status types

First chargeback outcome types

First chargeback operations

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