When running an online store, there are two distinct ways a buyer can request their money back: a "Standard Refund" and a "Consumer Dispute" (also known as a Chargeback).
When a buyer skips communicating with you and files a complaint directly with their card-issuing bank or payment provider (e.g., claiming "item not received," "item not as described," or "unauthorized transaction"), the bank initiates a mandatory investigation and temporarily freezes the funds. This is a Consumer Dispute.
| Comparison | Standard Refund | Dispute / Chargeback |
|---|---|---|
| Who initiates it? | After coordinating with the buyer, you initiate it via the Kanorio dashboard (or payment provider dashboard). | The buyer files a claim directly with their issuing bank or payment institution, which is then forcibly initiated by the bank. |
| Who decides the outcome? | You decide whether to issue a full or partial refund based on your store's return policy. | The issuing bank or card network determines the outcome based on the evidence submitted by both parties. |
| Processing timeframe | Subject to your agreement with the buyer (can be processed within the payment provider's 60–180 day refund window). | There is a strict legal deadline for evidence submission (usually only 7–14 days). Failure to submit evidence on time will result in an automatic loss for the merchant. |
| Impact on merchant reputation | Considered standard after-sales service; does not affect your merchant reputation. | A high dispute rate may lead to additional dispute handling fees, delayed payouts, or even suspension of payment processing privileges by the payment provider or card network. |
When Stripe, SHOPLINE Payments, or PAYUNi notifies us that an order has entered the dispute process, the system automatically triggers the following protection mechanisms:
Dispute opened.You may receive a dispute notification email directly from your payment provider, or a notification from the Kanorio team via your backend inbox or email. When you receive a notice, please follow these steps:
Card-issuing banks and payment providers have strict deadlines for responding to disputes (typically 7 to 14 calendar days after receiving the notice, sometimes shorter). Check the notification email or the payment provider's management dashboard immediately for the deadline.
Important Reminder: Once an order enters "In Dispute," the funds have already been held by the bank for the dispute process. Do not transfer money to the buyer yourself, and do not attempt to issue a refund through your store before confirming the process with your payment provider. Doing so may lead to a double loss: you refund the money once, and the bank deducts it again via the chargeback.
Open "Orders" and "Customers › Records" and prepare the following key evidence (screenshots or exported PDF/CSV files) based on the buyer's reason for the complaint:
| Buyer claim type | Recommended supporting evidence |
|---|---|
| Claim: "Item not received" | • Physical goods: Tracking number from the "Shipment Management" tab, screenshot of the carrier's official website showing "Delivered/Picked up," and recipient name and address records.；• Digital goods: Screenshot of the order confirmation email showing "Delivered" in , and proof of the time the buyer logged into "Purchased Content" and generated a download record. |
| Claim: "Item not as described" or "Refund terms not disclosed" | • Full screenshot of the product sales page on your live website (including product description, specifications, and the automatically displayed "Purchase Information" section).；• Screenshot of the publicly available "Purchase Terms" and "Return Policy" pages to prove that rules were clearly disclosed before checkout. |
| Claim: "Order cancelled or refund requested but not processed" | • Past email, LINE, or customer service chat records between you and the buyer (organized chronologically, indicating that you have processed the request according to the agreement or that the buyer did not submit the request within the timeframe). |
Kanorio does not have the authority to arbitrate for card-issuing banks. All evidence must be submitted to your payment provider, who will then forward it to the bank:
| Payment provider | Dispute notification and evidence submission channel |
|---|---|
| Go to "Website Settings › Payments", open your Stripe account details, click "Go to Stripe Dashboard", and upload evidence directly on the Disputes page (or select "Accept dispute"). | |
| Follow the instructions in the PAYUNi notification email, member dashboard, or the dispute handling form provided by the acquirer, and submit supporting documents within the specified timeframe. | |
| Follow the instructions in the dispute notification email sent by SHOPLINE Payments to submit proof of delivery and communication records. | |
| / | Mobile wallets rarely experience traditional credit card chargebacks (unless the buyer initiates one through the issuing bank of the linked card). If you receive a platform complaint mediation notice, please provide transaction details as instructed by the official channel, or initiate a directly from the Kanorio dashboard after reaching a consensus with the buyer. |
When submitting your explanation to the bank, use a "timeline list" to present the facts (e.g., 10/01 14:20 Buyer placed order and completed 3DS verification → 10/01 14:21 System sent order confirmation email → 10/02 10:15 Shipped via carrier, tracking #... → 10/03 15:40 Signed for by buyer), allowing the bank reviewer to verify all evidence within one minute.
Prevention is much easier than gathering evidence later. Developing these 4 habits can significantly reduce the chance of buyers filing chargebacks:
This content is for store operations and backend reference only and does not constitute legal or financial advice. The final ruling on each dispute case is subject to the regulations of the card-issuing bank, card network, and payment provider.
Credit card networks allow cardholders to file a complaint if they suspect card misuse or believe they did not receive the agreed-upon service. In this case, the "Order confirmation email delivery record" and "Buyer login/download record for purchased content" you keep in the backend are the most important evidence to prove to the bank that the buyer actually received the product.
If you confirm that the transaction was indeed incorrect or decide to concede, you can select "Accept dispute" in your payment provider's dashboard or follow their instructions to agree to the chargeback. Once the case is closed, the system will automatically change the order to "Refunded" and revoke access to the digital content.