When receiving FX inflows, disputes are an important aspect to be aware of. It is important for users to understand how disputes work, the associated fees, and their liability in such cases. This article will break down everything you need to know about disputes and what they mean for your business.

A dispute is simply when a customer asks their bank to cancel a payment they made to you to purchase a product or for a service.

This could be because they didn’t receive what they paid for or they believe they were charged the wrong amount or don’t recognize the charge on their bank statement or feel the transaction was fraudulent.

When a dispute is raised, the money is immediately taken from your account and held by the bank while they investigate. You can either accept the dispute (let the customer get their money back) or fight it by showing proof that the transaction was valid within a specified timeframe.

If the bank sides with the customer, you lose the money permanently, if otherwise, you get your money back.

There is also a non-refundable $15 charge that comes with each dispute raised, even if you win.

To avoid disputes, always be clear, transparent, keep to agreements and contracts, always have proof of every transaction, and Provide excellent customer support to address concerns before they escalate to disputes.

Ensure transparent pricing, refund policies, and terms of service.

If you receive a dispute notification, you have the option to either accept or contest it. Contesting requires you to provide evidence such as:

The evidence is then submitted to the cardholder’s bank, and the final decision is made by the bank.

While disputes can’t always be avoided, businesses can take proactive steps to protect themselves.

Keep thorough records of customer communications, transaction receipts, and delivery confirmations to serve as evidence in case of a dispute.

Disputes are a costly and unavoidable risk of online transactions. It is essential to stay informed about how Mima handles disputes, the financial impact they have on your business, and how to prevent them. Always monitor your transactions and proactively resolve customer issues to avoid unnecessary chargebacks.

For further guidance on managing disputes, feel free to reach out to our support team. Stay informed, stay protected!