A dispute arises when a customer disagrees with a transaction and raises it with either their bank or Cashfree Payments. Customers may also report fraudulent transactions to cybercells, and banks often initiate disputes over suspicious transactions directly. We will notify you over email whenever a new dispute is created, changes state or there is a new update from Cashfree.

Get real time notification for a dispute raised by a customer by configuring your email on the dashboard Payment Gateway Dashboard > Settings > Email Notifications > Dispute Emails

Chargeback Types

StateDescriptionResponse TimeResolution Time
DisputeInitial complaints from customers or fraud alerts from banks/authorities3 days (1 day for fraud cases)• Customer complaints: 5-7 business days
• Fraud cases: Up to several months
• Wallet/Netbanking: ~30 days
RetrievalPreliminary query raised by customer with their bank3 days• If contested: 30-45 days waiting period
• If accepted: ~10 days
ChargebackCustomer formally disputes transaction after retrieval3 days• Cards: 30-45 days
• UPI: 15-20 days
Pre-arbitrationSecond level dispute if customer disagrees with evidence2 days• Cards: 30-45 days
• UPI: 15-20 days
ArbitrationFinal stage where card networks/NPCI makes decision1 day~15 days for final verdict
  • Your customer can raise a pre-arbitration or an arbitration even for a dispute that is Closed (Merchant Won).
  • Response Time: Maximum days allowed to respond to the dispute
  • Resolution Time: Typical time taken to reach a final decision
  • Arbitration involves additional fees for the losing party
  • Timelines may vary based on payment method and case complexity

Chargeback Process States

Manage Chargebacks

Learn in detail about the various scenarios involved in disputes.

Webhooks

You can subscribe to the following asynchronous webhook events for disputes. Read more here.

  • DISPUTE_CREATED
  • DISPUTE_UPDATED
  • DISPUTE_CLOSED

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