A dispute (also known as a chargeback) occurs when a cardholder raises a dispute relating to a specific transaction with their bank or card issuer. If the merchant is unable to provide evidence that the transaction was authorised, the chargeback may be found in the cardholder's favour and the funds can then be debited from the merchant and returned to the cardholder.
Even if a dispute is raised, it does not necessarily mean that the transaction was unauthorised. A merchant can dispute the chargeback by providing proof of purchase, or proof that the transaction was authorised by the cardholder. For more information on what to do if a dispute is raised against you, click here.