Consumer Dispute Resolution
A consumer dispute occurs when a buyer does not directly request a refund from you but instead reports an issue with a transaction to their issuing bank, payment provider, or another formal channel, requesting a payment reversal. This is commonly known as a Chargeback (a dispute initiated by the bank), though the names and processes may vary depending on the payment tool.
While a standard refund is at your discretion, a consumer dispute is handled according to the deadlines, evidence, and rules set by the payment provider and relevant institutions. When facing a dispute, it's crucial to preserve your records, respond within the given timeframe, and avoid making promises that contradict your submitted evidence.
How Do Dispute Notifications Arrive?
Dispute notifications can come through two channels:
- Direct Notification from the Payment Provider to the Seller: For example, Stripe notifying you directly via Email or through their Dashboard.
- Notification from the Payment Provider to Kanorio, then Forwarded to the Seller: As a website building platform, Kanorio is responsible for cooperating with payment providers to protect consumer rights. When a payment provider sends dispute information to Kanorio, we will notify you via the backend or email and mark the order status as "Disputed."
Regardless of how you receive the notification, your handling process remains the same: preserve evidence, confirm deadlines, and respond according to the notification. Do not ignore a notification just because it comes from Kanorio – this signifies that the payment provider or a relevant institution has initiated a formal process.
What's the Difference Between a Refund and a Consumer Dispute?
| Item | Standard Refund | Consumer Dispute |
|---|---|---|
| Initiator | Seller, after agreement with buyer | Buyer, to bank or payment provider |
| Your Control | You decide whether to refund | You must provide information within notification deadlines and process |
| Required Information | Order and refund records | Order details, product description, proof of delivery, and communication evidence |
| Recommended Action | Handle within Kanorio order details | Secure evidence first, then respond to the notification |
Prevention is More Effective Than Post-Dispute Evidence
Clearly disclose on your product pages, near product sales modules, or in your footer:
- Product content, format, usage restrictions, and delivery methods.
- Differences between plans, final pricing, and currency.
- Refund, cancellation, and content access policies.
- Customer support contact information and expected response times.
For digital products, avoid exaggerated or vague descriptions. Buyers should understand exactly what they will receive, when they will receive it, and how to seek resolution if unsatisfied, before making a payment.
Steps to Take After Receiving a Dispute Notification
1. Preserve Case Records
Do not delete orders, product pages, customer service conversations, or digital content settings. Note down the order number, dispute amount, notification date, and response deadline.
2. Compile a Clear Timeline
List events chronologically: when the buyer placed the order, paid, accessed the content, contacted customer service, and how you responded.
3. Prepare Verifiable Evidence
Commonly accepted evidence includes:
- Order details and proof of successful payment.
- Product name, plan, price, and refund policy at the time of purchase.
- Records of content access, download, or usage for digital products.
- Customer service correspondence and records of any refunds or compensation already provided.
4. Respond by the Notification Deadline
Stripe, PAYUNi, or other payment providers may request information via email, their dashboard, or their established procedures. Adhere strictly to the actual notification and do not miss the deadline; Kanorio cannot guarantee the dispute outcome or extend external deadlines on your behalf.
5. Check Your Kanorio Order Simultaneously
If an order is marked as "Disputed," refrain from making unconfirmed, duplicate refunds for that order. If you have already issued a refund or are preparing a settlement, include those records in your response.
Handling Principles for Different Payment Gateways
Stripe Connect
Please follow Stripe's dispute notification and Connected Account management procedures. Product pages, delivery records, and customer service communications will serve as important evidence. For complete setup instructions from Stripe, please read: Accepting Payments with Stripe Connect.
PAYUNi Unified Payment Gateway
Please follow the notifications and deadlines provided by PAYUNi, the acquiring institution, or the issuing bank. Different payment tools may have varying data formats and procedures. For complete setup instructions from PAYUNi, please read: Accepting Payments with PAYUNi Unified Gateway.
LINE Pay
LINE Pay typically does not have a chargeback process similar to credit cards (forced transaction reversal by the issuing bank). If a buyer has a dispute, first communicate with the buyer according to your refund policy. If necessary, initiate a refund through the Kanorio backend. For details, please read: Accepting Payments with LINE Pay.
This Article is Not Legal Advice
Consumer rights, refund obligations, and dispute resolutions vary based on the product, buyer's location, payment method, and applicable laws. This article provides guidelines for record-keeping and operational procedures, not legal or tax advice. For high-value cases, suspected fraud, or matters involving regulatory authorities, it is advisable to consult with a qualified legal or accounting professional as soon as possible.
Frequently Asked Questions
Not recommended. First, communicate with the buyer based on your published refund policy and the product's condition. Issues that can be resolved through the standard refund process are usually easier to track than those entering a formal dispute procedure.
This depends on the risk, product nature, refund policy, and the notifications received. Revoking access is an independent action but does not replace your obligation to respond to the payment provider.
Yes. Digital products lack shipping manifests, making content access, download, online viewing, and customer service records even more critical.
No. Kanorio can preserve order and content access records and will forward dispute notifications from payment providers to you. However, the dispute resolution is ultimately handled by the payment provider, acquiring institution, bank, or relevant authority. Kanorio cannot respond to disputes on your behalf or guarantee outcomes.
No. If you have received a formal notification, you must still confirm the case status and whether submission of evidence is required, to ensure the refund record is correctly incorporated into the case.