What is a 'Dispute' in the context of card transactions?

In the context of card transactions, a 'Dispute' refers to a disagreement about a charge or bill. This can happen when a cardholder notices a transaction on their account that they believe is incorrect, unauthorized, or fraudulent. For instance, if a customer did not recognize a merchant's name or was charged an amount that differs from what they agreed to, they would file a dispute with their card issuer to investigate the matter.

A disagreement indicates that there is a conflict between the cardholder’s understanding of the transaction and how it was processed by the merchant or the issuer. This process is crucial for protecting consumers and ensuring that any errors or fraudulent activities can be addressed promptly. Disputes can also involve issues such as non-receipt of goods or services, significantly different goods delivered, or a case where services were not rendered as promised.

Understanding disputes is essential for both consumers and professionals in the payments industry, as it underscores the proper procedures for resolving payment issues and maintaining trust in the payment system.