Skip to main content
A dispute — also called a chargeback — occurs when a customer contacts their bank or card issuer to reverse a payment rather than requesting a refund directly from you. Paydios manages the dispute process with your payment partners on your behalf, but your cooperation and timely evidence submission are essential to contesting a dispute successfully.

​
How disputes work

1

Dispute opened

The customer contacts their bank or card issuer. The bank initiates a chargeback against the transaction. Paydios receives the dispute notification from your payment partner and notifies you by email and in the dashboard.
2

Funds withheld

Paydios places a hold on the disputed transaction amount. A chargeback fee equal to 12% of the disputed amount is also applied to your account.
3

Evidence requested

Paydios emails you with the dispute details and requests supporting evidence. You have three (3) business days from Paydios’s request to submit your evidence — sooner if the payment partner deadline is shorter.
4

Evidence submitted

Paydios reviews your evidence and submits it to the payment partner or card network on your behalf.
5

Decision issued

The customer’s issuing bank or card network reviews the evidence and issues a final decision. Paydios notifies you of the outcome and updates the transaction status accordingly.
The three-business-day evidence deadline is strict. If you miss the deadline, Paydios may accept the dispute without contesting it, and the funds will be returned to the customer. Monitor your email and dashboard notifications closely.

​
Dispute statuses

​
Viewing disputes in the dashboard

Log in to merchant.paydios.io and select Disputes from the left sidebar. Each row shows:
  • Dispute ID and Transaction ID
  • Customer name and email
  • Disputed amount and currency
  • Dispute reason (e.g. fraudulent, product_not_received, subscription_cancelled)
  • Response deadline
  • Status
Click any dispute row to open the full detail view where you can submit evidence.

​
Dispute reasons

Different dispute reasons require different types of evidence. Common dispute reasons include:
The customer claims they did not authorise the payment. Provide evidence of legitimate authorisation: IP address or device records at checkout, 3D Secure authentication records, prior transaction history with the same customer, or delivery confirmation to the billing address.
The customer claims the goods or services were never delivered. Provide shipping confirmation, carrier tracking with delivery confirmation, digital delivery logs, or service completion records.
The customer claims what they received was materially different from what you advertised. Provide product descriptions, photos, original order details, and any customer communications that show the product was accurately represented.
The customer was charged more than once for the same order. Provide order records showing only one transaction was processed, or refund records showing any duplicate was already resolved.
The customer disputes a recurring charge. Provide the original subscription sign-up confirmation, the cancellation policy the customer accepted, and any cancellation request records.

​
Submitting evidence

1

Open the dispute

Go to Disputes in the dashboard and click the dispute with status needs_response.
2

Review the dispute reason

Read the reason code provided. Use this to determine which evidence documents are most relevant.
3

Upload your evidence

Upload supporting documents in the evidence panel. Accepted formats include PDF, JPG, and PNG. Add a written explanation in the Additional context field to help the reviewer understand the transaction.
4

Submit before the deadline

Click Submit evidence. The status updates to evidence_submitted. You cannot add further evidence after submission, so make sure your submission is complete.

​
Evidence types Paydios may request

Depending on the dispute reason, Paydios may request any of the following:
  • Transaction records and invoices
  • Customer name and contact information
  • Product or service descriptions
  • Proof of delivery (carrier tracking, delivery confirmation)
  • Shipping confirmation and tracking information
  • Customer communications (emails, chat logs, support tickets)
  • Accepted terms and conditions or refund policy
  • Cancellation records
  • Proof of service completion (digital access logs, login records)
  • IP address or device information (where legally permissible)
  • Evidence of prior transactions with the same customer
  • Proof of any refund already issued
  • Signed contracts or authorisation documents
Evidence must be accurate, complete, and clearly organised. The issuing bank’s reviewer may have limited time to assess your submission — label documents clearly and include a concise summary of the transaction history.

​
Chargeback fees

Paydios charges a fee of 12% of the disputed amount for each chargeback received, regardless of the outcome. This fee is separate from the disputed transaction amount itself. For example, if the disputed transaction was 500,thechargebackfeeis500, the chargeback fee is 60. If you win the dispute, the 500isreturnedtoyouraccount,butthe500 is returned to your account, but the 60 fee is not refunded.
The chargeback fee is deducted from your available Paydios balance at the time the dispute is opened. If your balance is insufficient, the fee becomes an outstanding amount recovered from future settlements.

​
Chargeback rate monitoring

Paydios monitors your dispute activity continuously. If your chargeback rate reaches or exceeds 1%, your account enters enhanced risk review. Paydios may respond by:
  • Increasing your reserve requirement
  • Extending your settlement period
  • Restricting certain payment methods
  • Requiring additional fraud controls
  • Suspending processing in severe cases
A 1% chargeback rate is a review trigger, not an automatic suspension threshold. Paydios may also act below 1% if the nature of your disputes indicates elevated risk.

​
Preventing disputes

Taking proactive steps to reduce chargebacks protects your revenue and keeps your account in good standing.

Use clear billing descriptors

Make sure your business name on the customer’s bank statement matches what they recognise. Confusing descriptors are a leading cause of “I don’t recognise this charge” disputes.

Send order confirmations

Email a detailed receipt immediately after purchase — include the product name, amount, and your customer support contact. This reduces confusion and gives customers a direct path to resolve issues with you first.

Provide delivery tracking

Share carrier tracking numbers for physical goods so customers can follow their shipment. Disputes for non-delivery drop significantly when customers have visibility into delivery status.

Respond to support requests quickly

Most customers raise a chargeback only after failing to get a response from the merchant. A fast, friendly support response can resolve the issue before a dispute is ever opened.

Display your refund policy clearly

Show your refund and cancellation policy at checkout and require explicit acceptance. This provides evidence that the customer understood the terms at the time of purchase.

Use 3D Secure authentication

Enable 3D Secure for eligible card transactions. Successful 3DS authentication shifts liability for fraudulent chargebacks to the card issuer, not your account.

​
Disputes you cannot win

Paydios may choose not to contest a dispute if it determines that:
  • Insufficient evidence is available
  • The cost of representment outweighs the transaction value
  • The dispute reason makes a successful outcome unlikely
  • The payment partner does not support representment for the specific dispute reason
Paydios may accept a dispute without your separate approval in these circumstances. You authorise Paydios to exercise this right as part of using the platform.

​
Contacting Paydios about a dispute decision

If you disagree with how Paydios handled a dispute, contact legal@paydios.io with your dispute ID and a description of your concern. Paydios and the merchant should first attempt to resolve the matter directly before pursuing formal dispute resolution under the Merchant Agreement.